Hong Kong police arrest 19 in crackdown on money laundering syndicate handling HK$100 million in suspected crime proceeds
- Triad-controlled operation appeared on police’s radar after five core members allegedly defrauded a virtual bank out of HK$3.1 million
- Police arrest 15 men and four women in series of raids across city, in addition to seizing documents, mobile phones and bank cards
Hong Kong police have arrested 19 people in a crackdown on a triad-controlled money laundering syndicate that processed nearly HK$100 million (US$12.7 million) in suspected ill-gotten gains using 29 bank accounts.
Officers detected the money laundering activities while investigating a fraud case in which a local virtual bank was allegedly cheated out of HK$3.1 million in loans by five core members of the gang, the force said on Thursday.
The five set up accounts with the bank before applying for loans between last September and March this year.
After receiving the money, the suspects filed false reports with police claiming they had not set up any of the accounts involved or applied for any loans, the force said.
The five claimed others had used their personal information to apply for the loans in an alleged attempt to mislead officers and avoid repaying the money, police said.
“But an investigation suggested the five suspects were paid by the syndicate to set up bank accounts and apply for loans,” Senior Inspector Ngai Chun-kit of police’s commercial crime bureau said.
According to the force, the money was then transferred into bank accounts controlled by the syndicate to launder the crime proceeds.
Lau Ka-ming, acting chief inspector at the bureau, said a follow-up investigation had led police to identify 29 bank accounts controlled by the syndicate and used to launder nearly HK$100 million in suspected illegal funds.
After gathering evidence, officers arrested 15 men and four women in a series of raids across the city on Wednesday.
Police also seized documents, mobile phones and bank cards during their operation.
Those arrested included the group’s alleged ringleader, aged 30, and the five core members. Police said some of the suspects had triad backgrounds.
The suspects, aged between 22 and 57, were detained on suspicion of money laundering, conspiracy to defraud and misleading police with false information.
As of Thursday afternoon, the suspects were still in police custody. The force said the investigation was ongoing and further arrests were possible.
Money laundering is punishable by up to 14 years in jail and a HK$5 million fine. Misleading police with false information carries a maximum penalty of six months in prison.
