Hong Kong police arrest 17 over money-laundering syndicate behind HK$97 million handled in past 16 months
- Nine men and eight women suspected to have used virtual accounts to process funds
- Suspects thought to have been paid up to HK$1,000 each to set up accounts for syndicate members to use
Hong Kong police have arrested 17 people and smashed a syndicate believed to have laundered HK$97 million (US$12.4 million) over the past 16 months.
The nine men and eight women, detained in a series of raids across the city on Wednesday and Thursday, comprised core syndicate members and holders of online bank accounts used to handle crime proceeds, according to the force.
Chief Inspector Lau Ho-tak of the Kowloon East regional crime unit on Friday said the group had processed the funds through more than 20 online bank accounts since 2021.
“The investigation suggests the money involved was crime proceeds generated from illegal gambling, loan-shark activities, and online shopping scams,” he said.
Senior Inspector Tuen Yuk-hang of the unit said the syndicate used money to lure local residents into setting up accounts with virtual banks, which were then used to launder the crime proceeds.
“They were paid between several hundred dollars and HK$1,000 each to set up the accounts,” he said.
Holders were instructed to surrender their personal information and account details, such as passwords, to syndicate members who then processed the money.
4 in Hong Kong arrested over HK$600 million money-laundering case
“We discovered that some of the accounts had 1,000 transactions involving more than HK$100,000 in a single day,” the senior inspector said.
Tuen added that dividing a large sum of money into smaller portions to be moved through bank accounts was a “traditional money-laundering tactic”.
After gathering evidence, officers swooped into action and rounded up the 17 suspects, aged 26 to 67. They included restaurant employees, housewives, transport workers and those who were unemployed. Police said some of them had triad backgrounds.
According to the force, the suspects were detained on suspicion of conspiracy to launder money – an offence punishable by up to 14 years in jail and a HK$5 million fine.
During the operation, code-named “Icescroll”, officers seized mobile phones, electronic devices used to log into the accounts, and related bank documents.
The suspects have all been released on bail pending further investigation
14 held in Hong Kong police crackdown on HK$300 million money-laundering gang
Police did not reveal if money or assets linked to the crime proceeds were frozen in the operation. Tuen said officers were still investigating the source of the money and the final recipients of the funds. Further arrests were possible, the force said.
According to police, virtual banks, much like traditional lenders, have to meet anti-money-laundering and other compliance regulations. Such bodies cannot have bricks-and-mortar branches and must use apps, the internet and ATMs to service customers.
In Hong Kong, banks, securities and insurance companies, and legal and accounting professionals, as well as property agents, must report suspicious transactions.
In the first four months of the year, the Joint Financial Intelligence Unit, comprising police and customs officers, handled 21,329 reports of suspicious financial activity.
Figures from the unit show reports of suspicious financial activity dropped from 92,115 in 2017 to 56,912 in 2021.
The latest case marked the second money-laundering syndicate uncovered by local authorities in two weeks.
On April 28, customs officers arrested four alleged core members of a similar group, suspected to have funnelled HK$600 million in illegal proceeds through more than 750 bank accounts over the past two years.
