Hong Kong police smash cross-border syndicate that laundered HK$118 million

Hong Kong police have dismantled a cross-border syndicate that laundered HK$118 million (US$15 million) through stooge bank accounts, arresting 12 people as officials seek tougher sentencing for those renting or selling their personal bank details.

In an operation conducted by the commercial crime bureau, police arrested nine men and three women aged between 20 and 40 across multiple districts on Thursday, seizing HK$1.05 million in cash, more than 560 ATM cards, numerous mobile phones and bank documents. They have been charged with conspiracy to commit money laundering.

Fraud-related cases have been on the rise in Hong Kong. Last year alone, nearly 95,000 criminal cases were recorded, with fraud accounting for almost half. Close to 10,000 people were arrested in connection with fraud last year, with 73 per cent identified as holders of “shell accounts” used to facilitate illegal activities.

Superintendent Shirley Kwok Ching-yee said investigations revealed that the local money laundering syndicate had been actively recruiting mainland Chinese individuals since July last year to open shell accounts in both traditional and digital banks in Hong Kong.

“These accounts were allegedly used to receive illicit proceeds from various fraud schemes,” she said.

“These people were also arranged to use other bank cards to withdraw cash and then transport the funds to some virtual asset exchange stores to convert them into cryptocurrency as a means of laundering money.”

Chief Inspector Lo Yuen-shan said among the arrested were two key local members of the syndicate and 10 mainlanders who acted as the shell account holders.