Hong Kong customs arrests man suspected of laundering HK$7.4 million generated from illegal wildlife trade
- Suspect, 35, handled the illegal funds in about 6,700 transactions over 2½ years and involving around 700 third-party accounts, authorities say
- Alleged crime proceeds could be generated from illegal wildlife trade and cross-border smuggling of contraband products, probe finds
Hong Kong customs officers arrested a city resident on Thursday suspected of laundering HK$7.4 million (US$946,000) in alleged crime proceeds that could have been generated from illegal wildlife trade and cross-border smuggling activities.
Preliminary investigations revealed the two bank accounts of the 35-year-old suspect handled the illegal funds in about 6,700 transactions in 2½ years, involving about 700 third-party accounts, according to Inspector Poon Yip-kan of customs’ financial investigation bureau.
Customs officers launched an investigation into the suspect’s finances after apprehending him in connection with a 2022 case that involved cross-border smuggling of contraband products worth millions of Hong Kong dollars. The cargo was believed to be intended for mainland China.
The seized goods in the anti-smuggling operation included endangered coral items valued at about HK$800,000.
The Organised and Serious Crimes (Amendment) Ordinance came into force in 2021 to strengthen enforcement capabilities against wildlife trade. It covers certain wildlife trafficking-related crimes such as the illegal import or export of endangered species.
The amendment grants authorities the power to conduct financial investigations, restrain and confiscate the proceeds of wildlife crimes and enhance sentencing.
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During the probe, officers from the bureau discovered that the man’s two personal bank accounts were involved in a large number of suspicious transactions, totalling about 700 third-party accounts.
“The investigation revealed that his bank accounts handled more than HK$7.4 million in 6,700 transactions between April 2021 and September 2023,” Poon said on Thursday.
“The funds were transferred out of his accounts to third-party accounts on the same day or within the next few days after the deposits.”
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This was a “traditional money-laundering tactic” involving the temporary depository of funds and U-turn transactions, he added.
“The significant number of transactions involving such a large amount of money his accounts processed was incommensurate with the man’s financial status,” the inspector said.
Poon added that the funds involved were suspected crime proceeds that could have been generated from illegal wildlife trade and cross-border smuggling of contraband products.
After gathering evidence, customs officers arrested the jobless man in Tuen Mun at around 8am on Thursday.
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Poon said they were investigating the origins of the money involved, the final destinations of the illegal funds and the types of activities that had generated the money.
The suspect was released on bail pending further investigations.
In Hong Kong, money laundering is punishable by up to 14 years in jail and a HK$5 million fine.
Last month, Hong Kong and Indian customs arrested eight people in an unprecedented joint operation to crack down on a criminal syndicate that fabricated cross-border diamond trading to launder HK$500 million in alleged crime proceeds via the city.
The case is the first time that such a trade-based money-laundering scheme has been discovered in the city.
