Transnational Syndicate Linked to $1.8 Billion Money Laundering Scheme
Hong Kong customs officials have made a major breakthrough by apprehending seven individuals tied to the territory’s most significant money laundering case to date, involving a staggering 14 billion Hong Kong dollars, with links to a scam in India.
According to authorities, the seven suspects, all local residents aged between 23 and 74, were part of a sophisticated transnational syndicate that utilized shell companies and multiple bank accounts to funnel substantial amounts of money from abroad to Hong Kong under the guise of operating international trading enterprises. Notably, one account received a jaw-dropping sum of 100 million Hong Kong dollars in a single day.
Ip Tung-ching, the head of the customs financial investigation bureau, disclosed that a substantial portion of the 14 billion Hong Kong dollars was suspected to be tied to a scam involving a mobile application in India, amounting to 2.9 billion Hong Kong dollars. While the specific application was not revealed, it was highlighted that some of the arrested individuals were non-Chinese residents of Hong Kong.
The syndicate allegedly received funds from India under the pretense of exporting electronic devices, diamonds, gems, and precious metals. These proceeds were then funneled through Hong Kong bank accounts for the purpose of money laundering. Ip emphasized that such money laundering activities not only facilitate criminal profits but also shield them from legal scrutiny.
Collaboration between law enforcement agencies in Hong Kong, India, and other jurisdictions was pivotal in the success of the operation, as stated by Ip. Yu Yiu-wing, the bureau’s divisional commander, highlighted that intelligence sharing with Indian authorities revealed that funds from two jewelry companies linked to the scam were part of the illicit flow of money.
A 34-year-old Hong Kong resident, believed to be the mastermind behind the syndicate, was apprehended in late January. Law enforcement officials seized electronic devices, documents, and over 8,000 carats of suspected synthetic gemstones intended for export to India. The investigation into the case is ongoing, with the previous record money laundering case in Hong Kong involving approximately 6 billion Hong Kong dollars and the arrest of nine individuals in January 2023.