Hong Kong: Seven Arrested in Largest Money Laundering Case to Date
Hong Kong - In a significant development in the fight against financial crime, Hong Kong Customs officials announced the arrest of seven individuals in connection with the city’s largest money laundering case to date. The case involves approximately 14 billion Hong Kong dollars ($1.8 billion).
Key Points
- Seven individuals arrested, including local residents aged 23 to 74
- Largest money laundering case in Hong Kong’s history, worth 14 billion HKD ($1.8 billion)
- Some funds linked to a scam in India, involving a mobile application
- HKD 2.9 billion ($371 million) of suspect funds believed to come from Indian scam
- Syndicate used shell companies and international trading businesses for money transfers
- Operatives received remittances from India, claimed to be for export of electronic devices, diamonds, gems, and precious metals
- Cooperation between Hong Kong, Indian, and other jurisdiction law enforcement agencies was crucial
- Mastermind of the syndicate, a 34-year-old Hong Kong resident, is believed to be in custody
- Previous record money laundering case involved 6 billion HKD ($767 million)
Customs Press Conference
Customs Financial Investigation Bureau head, Ip Tung-ching, announced the arrests at a press conference on Friday. Ip revealed that all seven arrested individuals were local residents. Among them were non-Chinese residents of Hong Kong, but further information about them was not provided.
Ip explained that the suspects were part of a large-scale transnational syndicate that used various shell companies and bank accounts to transfer large sums of money from overseas to Hong Kong. One account allegedly received as much as 100 million Hong Kong dollars ($12.8 million) on a single day.
Ip stated that approximately 2.9 billion Hong Kong dollars ($371 million) of the suspected funds are believed to originate from a scam involving a mobile application in India. However, she did not specify which app was involved in the scam. The remaining funds are yet to be definitively linked to any specific criminal activity.
Indian Scam and Money Laundering
The syndicate reportedly received remittances from India, using the businesses of exporting electronic devices, diamonds, gems, and precious metals as a cover for money laundering. Ip further explained, “These acts of money laundering provide protective umbrellas for the illegal profits of criminals.”
Law enforcement agencies in Hong Kong, India, and other jurisdictions cooperated in the operation. Customs’ Yu Yiu-wing, divisional commander of the bureau, shared that intelligence was exchanged with Indian authorities and that some of the money originated from two jewelry companies identified as being connected to the scam.
Mastermind in Custody and Seizure of Evidence
A 34-year-old Hong Kong resident, now in custody, is believed to be the mastermind of the syndicate. Customs officers have seized evidence related to the case, including electronic devices, documents, and over 8,000 carats of suspected synthetic gemstones intended for export to India.
The investigation is ongoing.
Comparison with Previous Money Laundering Case
The previous record money laundering case in Hong Kong involved approximately 6 billion Hong Kong dollars ($767 million), and resulted in the arrest of nine people in January 2023.