A former vice-president of the London Chinatown Chinese Association, He Jiajin, has denied money laundering charges over the dispersal of more than Euro1 million in Hong Kong. He, 44, pleaded not guilty yesterday to three charges of dealing with proceeds known or reasonably believed to have been generated from an indictable offence, before Deputy District Court Judge David Thomas. Prosecuting barrister John Dunn alleged He had transferred the money - which was credited to him in a banking mistake - into a series of other accounts in the knowledge that it was not his to use. Mr Dunn said dealing with the money was illegal because it was misappropriated funds that He was not entitled to use. The prosecution said He operated Futsing Finance, based in Britain. The company engaged in the business of processing remittances between the UK and Fujian province , where He is from. The money stemmed from a banking instruction He made on December 11, 2001, in the UK to transfer GBP91,000 to a Hong Kong bank account held by Cheong Lai-keen. But due to an error by a staff member of HSBC in London, the bank deposited Euro1,015,878 to Ms Cheong's account the next day. Ms Cheong did not know He personally, but is the sister-in-law of Yung Hung-chiu, a Hong Kong resident who was told by a relative in Fujian, Tse Chok-kwok, to act as a remittance agent in Hong Kong. Ms Yung, who agreed to help handle the transfer for a commission, opened two local bank accounts in the names of Ms Yung and Ms Cheong. Mr Dunn said the money transferred to Ms Cheong was dispersed via Ms Yung's and He's accounts to other accounts in Hong Kong between December 2001 and January 2002, under He's instructions. Mr Dunn said a civil action was launched by HSBC in London to recover GBP536,000 overpaid to He. The hearing continues today.