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Ambrose Li

Hong Kong customs officers have arrested three people in connection with a HK$1.8 billion money-laundering racket involving a cryptocurrency platform and bank accounts of shell companies.
The bank accounts had “abnormally frequent and large transactions” despite the companies not having tax records, import and export declarations, or physical addresses, customs said on Thursday.
One account received as much as HK$39 million a day and handled up to 167 transactions.
Two of the suspects allegedly handled HK$760 million – or 40 per cent of the funds involved in the case – from a cryptocurrency platform. Police said the cryptocurrency was Tether.
Hong Kong customs arrests 7 over HK$14 billion money-laundering operation
“Investigating money laundering involving cryptocurrency presented us with challenges as it possesses a high degree of anonymity and it is not restricted by jurisdictions,” Florence Yeung Yee-tak, commander of customs’ financial investigation division, said on Thursday.
“We acted on intelligence, and conducted capital flow analysis and financial investigations.”
Officers mounted an operation on Wednesday targeting four flats, five companies and two licensed money service operators before making the arrests.
The three locals arrested – a woman, 42, and two men, aged 48 and 60 – allegedly set up five companies and 18 local bank accounts between June 2021 and July 2022 that handled more than 1,000 suspicious transactions involving funds from unknown sources.
Customs said the three suspects did not know each other.
Hong Kong student jailed for money laundering in connection with 2019 protests
The woman, who was unemployed, allegedly played an upstream role in the money-laundering process, accepting transfers from different companies and cryptocurrency exchange platforms.
These funds were then transferred to other companies or the two men involved through the two licensed money changers.
The woman handled HK$900 million of the funds, the Customs and Excise Department said.
It said the two male suspects were lower down in the process, with the 60-year-old, a driver, dealing with HK$300 million. The other man, who was self-employed, handled HK$600 million.
Hong Kong, Indian customs arrest 8 in HK$500 million money-laundering case
Customs said investigations revealed the sources of the funds included a cryptocurrency exchange platform and more than 200 local and overseas companies.
The funds were swiftly transferred to other firms after they arrived in the shell companies’ bank accounts.
The shell companies were reported to be in different industries including mobile phone accessories, machinery wholesales, and vehicle parts.
But they had business transactions in unrelated sectors such as agricultural products and food, with these firms also believed to be shell companies.
According to customs, the three arrested were suspected to be the core members of the syndicate, and the operation had dismantled the ring.
Hong Kong plans to regulate cryptocurrency exchanges amid money-laundering alert
Mobile phones, company documents and stamps, and transaction records were also seized in the operation, code-named “Racer”. Customs said the source and direction of the funds were still being investigated.
Customs did not rule out further arrests.
The trio were arrested for suspected conspiracy to deal with property known or reasonably believed to represent proceeds of an indictable offence, commonly known as money laundering. They were later released on bail.
Those convicted of the offence face a maximum penalty of 14 years’ imprisonment and a HK$5 million fine.


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Florence Yeung of customs’ financial investigation division explains how the funds were laundered. Photo: Eugene Lee

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Hong Kong customs displays some of the items seized during the anti-money laundering operation. Photo: Dickson Lee

(From left) Deputy head of customs’ financial investigation bureau Ben Yeung, bureau head Suzette Ip and Senior Investigator Sam Yu display evidence seized in the operation. Photo: Dickson Lee

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A police officer has pleaded guilty to laundering more than HK$6 million. Photo: Shutterstock

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News

Hong Kong

Law and Crime

Woman, 42, and two men, aged 48 and 60, allegedly set up five companies and 18 local bank accounts that handled more than 1,000 suspicious transactions
Customs says two of the suspects handled HK$760 million from cryptocurrency platform


Woman, 42, and two men, aged 48 and 60, allegedly set up five companies and 18 local bank accounts that handled more than 1,000 suspicious transactions.


Crime

Scams and swindles

Cryptocurrency

Hong Kong customs arrests 3 over alleged HK$1.8 billion money-laundering scheme linked to cryptocurrency platform, shell companies

Woman, 42, and two men, aged 48 and 60, allegedly set up five companies and 18 local bank accounts that handled more than 1,000 suspicious transactions Customs says two of the suspects handled HK$760 million from cryptocurrency platform

Woman, 42, and two men, aged 48 and 60, allegedly set up five companies and 18 local bank accounts that handled more than 1,000 suspicious transactions

Customs says two of the suspects handled HK$760 million from cryptocurrency platform