Hong Kong customs arrests 2 visitors after finding thousands of Taiwanese banknotes in parcel
- Parcel from South Korea declared as carrying clothing and books opened by officers at airport found to contain NT$4.5 million, source says
- Authorities tracking what they believe is money-laundering syndicate that mails illegal gains in foreign currency into city to be exchanged for Hong Kong dollars
Hong Kong customs officers are tracking a money-laundering syndicate after arresting two men on suspicion of smuggling thousands of Taiwanese banknotes worth NT$4.5 million (US$148,000) into the city.
A source familiar with the case on Tuesday said 4,500 banknotes, each worth NT$1,000, were concealed in four magazines contained in a parcel airmailed to the city from South Korea last Friday.
The insider said he suspected the money came from criminal activity and was sent to Hong Kong to be laundered.
“A preliminary investigation suggested the syndicate had airmailed more than 10 parcels carrying cash into the city from South Korea over the past two months,” the source said, adding it was not yet known how much money overall was involved.
The foreign currency was exchanged for Hong Kong dollars at two money exchange shops in Tai Kok Tsui and then handed over to the syndicate’s members, the insider said.
Mailing the cash into the city rather than transferring it through banks helped conceal the flow of the syndicate’s criminal proceeds, the source said, adding authorities were investigating the origin of the illegal gains, how it was generated and its final destination.
The investigation was continuing and further arrests were possible, the Customs and Excise Department said.
The case came to light when customs officers at the airport’s cargo terminal selected a parcel from South Korea for inspection last Friday. The parcel was declared as carrying clothes and books.
Inspector Billy Au Wing-cheung of the customs’ syndicate crimes investigation bureau said officers opened the package after an X-ray showed its contents were suspicious.
Customs officers posing as delivery workers dropped off the parcel at an industrial unit in Tai Kok Tsui at about 10am on Monday. A 51-year-old man signed for the package and was arrested, along with a 48-year-old suspect. The source said officers seized HK$400,000 in the possession of the younger man.
Both suspects entered Hong Kong on tourist visas, with the younger man arriving on Saturday and the older one about two weeks ago.
“The investigation suggested the seized foreign currency would be taken to a nearby money exchange shop to exchange into Hong Kong dollars before being handed over to a designated person,” Au said.
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The two men were arrested on suspicion of failing to declare the import of currency with customs, an offence punishable by up to two years in jail and a HK$5 million fine.
The law, which came into effect in 2018, aims to prevent criminal proceeds and terrorist funding from entering the city.
Travellers in possession of currency or “bearer negotiable instruments” such as cheques or money orders valued at more than HK$120,000 must declare them. Cargo owners are required to make the declaration in advance.
