Hong Kong customs smashes US$91 million money-laundering racket, 23 local men arrested over cash smuggled from Turkey
- Investigation finds syndicate carried out 41 deliveries of cash involving US$91 million in total from Turkey to Hong Kong between January and May
- Passengers delivering cash were provided with free air tickets and accommodation, but their journey usually took about three days, investigator says
The amount was the highest recorded in two decades for a money-laundering case involving bulk cash smuggling operations using air couriers, the Customs and Excise Department on Wednesday said.
During the arrest operation, code-named “Checkmate”, customs officers seized US$5.3 million in cash, more than 20 empty suitcases and backpacks, and six banknote counters in a Tsim Sha Tsui office the syndicate used as an operational centre to handle the money.
Assistant Superintendent Wong Ching-fu of customs’ syndicate crimes investigation bureau said the 23 men included two suspected ringleaders, two core members and 11 couriers who were paid as much as tens of thousands of Hong Kong dollars to carry each cash delivery.
He said an investigation found the syndicate had carried out 41 deliveries of cash involving US$91 million in total from Turkey to Hong Kong between January and May.
Hong Kong customs seizes fake goods worth HK$44 million; Rolex, Chanel among haul
The bureau’s Superintendent Yeung Yuk-man said the amount of money involved in each delivery ranged from US$1.3 million to US$5.3 million. Twenty-two deliveries were made in a single month.
Officers became suspicious when the passengers involved made customs declarations of bulk cash imports at Hong Kong International Airport after arriving from Istanbul, he said.
“They claimed they helped two companies in Turkey deliver the cash into Hong Kong for businesses involved in the trading of gemstones and jewellery but gave no further details,” Yeung said.
“They were unable to give the details of local agencies involved and the final destination in the city.”
Travellers are required to declare sums of more than HK$120,000 when coming into Hong Kong under legislation that came into effect in 2018 to prevent criminal proceeds and terrorist funding from entering the city.
Hong Kong customs seizes HK$905 million worth of illegal cigarettes since January
According to the department, each courier carried a suitcase and a backpack stuffed with US$100 notes during deliveries.
“In addition to a monetary reward, they were provided with free [economy-class] air tickets and accommodation, but their journey usually took about three days,” a source familiar with the case said.
After exiting the airport terminal building, they went straight to a nearby car park and handed over the luggage and backpack to people assigned to collect the cash and take it to the Tsim Sha Tsui office.
In an attempt to avoid detection, the syndicate used different cars to pick up the cash at the airport and moved its operational centre to another office in the same district in April, he added.
Yeung said the two offices were rented by shell companies, which claimed to be involved in the trading of motor parts, metal and electronic and household products, but the investigation found the two firms had no actual business.
After gathering evidence, officers swooped into action in the early hours of May 25 and raided the operations office, where they arrested three men and seized US$5.3 million.
The money had earlier been collected at the airport car park from two couriers who were also arrested in the Tai Wai area of Sha Tin and Fanling at the same time.
Wong said the investigation indicated the money was repackaged in the office before someone came to pick it up.
“The syndicate used bulk cash smuggling operations in an effort to conceal the flow of the criminal proceeds,” he said.
The other 18 suspects, including the two alleged ringleaders and two core members, were rounded up during raids on more than 20 locations across the city between May 26 and Tuesday.
The suspects were detained on suspicion of conspiracy to launder crime proceeds – an offence punishable by up to 14 years in jail and a HK$5 million fine.
Hong Kong customs arrests man after US$1 million Brazil cocaine bedsheet bust
Wong said customs was investigating the origin of the illegal gains, how the cash was generated and its final destination.
He added that authorities had also sought help from overseas law enforcement agencies to investigate the two companies in Turkey.
