Hong Kong Police Dismantle $15 Million Money-Laundering Operation
Recently, Hong Kong law enforcement successfully disrupted a major money-laundering network, reportedly processing approximately $15 million through an intricate web of over 550 bank accounts and cryptocurrency transactions. This crackdown led to the arrest of twelve individuals, aged between 20 and 40, across Hong Kong and mainland China. These suspects are now facing charges for their alleged involvement in conspiracy to commit money laundering, according to reports by Hong Kong Commercial Daily on May 17.
The Strategy Behind Shell Account Recruitment
Investigations revealed that the criminal group recruited individuals from mainland China to open numerous shell bank accounts. These accounts were used to funnel proceeds from various fraudulent activities. Recruits would withdraw cash using different ATM cards and transfer the money to virtual asset exchanges. The funds were then converted into digital tokens and integrated into other transactions, effectively obscuring their origins.
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Operational Hub Located in Mong Kok
Chief Inspector Lo Yuen-shan disclosed that the syndicate operated out of an apartment in Mong Kok since mid-2024. This location served as a base for mainland recruits who processed illicit funds daily through the shell accounts. During a raid at this apartment, law enforcement officers uncovered 600,000 HKD in cash and numerous bank documents.
Significant Seizure Following Surveillance
Superintendent Shirley Kwok Ching-yee reported that two central figures in the operation were closely monitored. One individual was observed entering a bank, while the other used an ATM, before both headed to a cryptocurrency exchange in Tsim Sha Tsui. Police intervened, seizing approximately 770,000 HKD in cash. Overall, the raids resulted in the recovery of around 1.05 million HKD, about 134,000 in various currencies, over 560 ATM cards, and several mobile phones.
Extent of the Fraudulent Activities
Chief Inspector Lo further revealed that over 10 million HKD of the laundered money was linked to 58 separate fraud cases. Fraud-related crimes in Hong Kong surged by over 12% in 2024, resulting in more than 10,000 arrests. A significant portion of these arrests, over 70%, involved individuals holding shell accounts. Fraud now constitutes nearly half of the city’s 95,000 criminal cases reported last year.
Advocacy for Enhanced Penalties
Senior Inspector Tse Ka-lun from the Commercial Crime Bureau highlighted the issue of friends and relatives allowing criminals to exploit their bank accounts. He urged the judiciary to impose harsher penalties. Currently, the law permits a maximum sentence of 14 years’ imprisonment and a fine of up to 5 million HKD. However, in the past two years, over 100 convicted money launderers received additional sentences, ranging from three to 18 months.
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