Financial Crime World

Hong Kong Customs Crack Down on $14 Billion Money Laundering Racket

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Major Breakthrough in Dismantling Transnational Syndicate

In a significant operation, Hong Kong Customs has successfully dismantled a large-scale transnational money laundering syndicate that had laundered approximately HK$112 billion (US$14 billion) through international trade activities. The operation, codenamed “Daybreak”, resulted in the arrest of seven individuals and the freezing of assets worth HK$1.3 billion (US$165 million).

Investigation Reveals Syndicate’s Modus Operandi

According to Customs, the syndicate was a family-owned enterprise that operated multiple companies and bank accounts in Hong Kong to facilitate the laundering of tainted money. The investigation found that some of the proceeds originated from mobile application scams in India, which were then funneled into local corporate bank accounts.

Key Findings and Arrests

  • A series of raids were conducted on 11 premises across different districts in Hong Kong.
  • Four Chinese nationals and three non-Chinese individuals aged between 23 and 74 were arrested.
  • The suspects are believed to be the mastermind, core members, and grassroots operatives of the syndicate, as well as an intermediary who recruited stooge account holders.

Assets Seized and Ongoing Investigation

The operation also led to the seizure of a large quantity of suspected synthetic gemstones, mobile phones, computers, company chops, cheque books, bank cards, bank documents, and trading documents. An investigation is ongoing, and further arrests are possible.

Warning from Customs Department

Customs has warned that money laundering activities can be reported through its 24-hour hotline or dedicated email account. The maximum penalty for conviction under the Organized and Serious Crimes Ordinance (OSCO) is a fine of HK$50 million and imprisonment for 14 years, while the crime proceeds are subject to confiscation.

Largest Money Laundering Case Dismantled by Customs

This operation marks the largest money laundering case dismantled by Customs in terms of the amount of tainted money involved. The agency has called on members of the public to remain vigilant and report any suspected money laundering activities.