Financial Crime World

Seven Arrested in Hong Kong’s Largest Money Laundering Case: HKD 14 Billion ($1.8 Billion)

In a significant bust, the Hong Kong Customs took down the city’s largest known money laundering scheme, involving approximately HKD 14 billion ($1.8 billion). Seven local residents were arrested, and some funds are believed to be connected to a scam in India.

Arrest of Seven Suspects

  • Age of suspects ranged from 23 to 74.
  • Part of a vast transnational criminal network.
  • The largest single transaction was a staggering HKD 100 million ($12.8 million).
  • 2.9 billion HKD ($371 million) of the total suspected to be linked to an Indian scam.
  • Indian authorities linked the funds to the export of electronic devices, diamonds, gems, and precious metals.
  • The alleged proceeds were laundered through local bank accounts.

Impact and Collaboration

  • Money laundering activities “provide protective umbrellas for the illegal profits of criminals,” according to Ip Tung-ching, head of Hong Kong Customs Financial Investigations Bureau.
  • International authorities, including Hong Kong, India, and others, collaborated on the operation.

Indian Connections and Discoveries

  • Funds were traced back to two jewelry companies in India, previously linked to the scam.
  • A 34-year-old Hong Kong resident, arrested late in January, believed to be the mastermind of the syndicate.
  • Investigation uncovered electronic devices, documents, and over 8,000 carats of suspected synthetic gemstones.

Previous Record Money Laundering Case

  • Previous record money laundering case involved approximately HKD 6 billion ($767 million) and the arrest of nine individuals in January 2023.