Major Financial Fraud: Hong Kong Customs Disrupt City’s Largest Money Laundering Case

Seven Arrested in Connection with 14 Billion HKD Money Laundering Scheme

HONG KONG — In an effort to combat financial fraud, Hong Kong customs officials have apprehended seven individuals suspected of being involved in the city’s largest ever money laundering case—approximately 14 billion Hong Kong dollars ($1.8 billion).

Syndicate’s Complex Money Laundering Scheme

The suspected money laundering syndicate consisted of both local and non-Chinese residents. These individuals are believed to have used intricate webs of shell companies and bank accounts to launder overseas funds under the guise of international trading businesses.

Arrests: Six Local Residents and One Non-Local

Among the seven arrested were six local residents aged between 23 and 74, and one non-local resident.

Seizures: Over 8,000 Carats of Suspected Synthetic Gemstones and Large Monetary Transfers

Customs officials shared that one account had received as much as 100 million Hong Kong dollars ($12.8 million) on a single day. Evidence of the crime scene included electronic devices, documents, and over 8,000 carats of suspected synthetic gemstones.

Indian Scam Connection: 2.9 Billion HKD Linked to Mobile Application Fraud

Ip Tung-ching, the head of customs financial investigation bureau, divulged that 2.9 billion Hong Kong dollars ($371 million) of the total suspected money laundering proceeds may be linked to a fraudulent scheme involving a mobile application in India.

Indian Authorities Identify Involved Jewelry Companies

Indian authorities reportedly discovered two jewelry companies involved in the fraudulent scheme. Some of the traced funds were found to have been transferred from these companies.

The Mastermind: A 34-Year-Old Hong Kong Resident

A 34-year-old Hong Kong resident, arrested in late January, is believed to be the mastermind behind the criminal operation.

Protective Umbrellas for Criminal Profits

Ip commented, “Money laundering activities provide protective umbrellas for the illegal profits of criminals.” She also emphasized that law enforcement agencies in Hong Kong, India, and other countries worked closely to execute the operation.

Yu Yiu-wing, divisional commander of the customs bureau, added, “Exchanging intelligence with our counterparts in India proved crucial in identifying the source of these funds.”

Previous Record Money Laundering Case: 6 Billion HKD and Nine Arrests

The previous record money laundering case in Hong Kong involved approximately 6 billion Hong Kong dollars ($767 million) and the arrests of nine individuals in January 2023.

The Investigation Continues

The inquiry into this money laundering case remains ongoing.