Hong Kong customs officials have made a significant breakthrough in the territory's largest ever money laundering case, arresting seven individuals linked to the illicit activity. The operation involved approximately 14 billion Hong Kong dollars ($1.8 billion), with some of the funds traced back to a scam case in India.
The arrested individuals, all Hong Kong residents aged between 23 and 74, were part of a large-scale transnational syndicate. This syndicate utilized various shell companies and bank accounts to transfer substantial sums of money from overseas to Hong Kong, disguising the transactions as international trading businesses, according to customs officials.
Remarkably, one of the accounts involved in the operation received a staggering 100 million Hong Kong dollars ($12.8 million) in a single day. The head of the customs financial investigation bureau, Ip Tung-ching, revealed that approximately 2.9 billion Hong Kong dollars ($371 million) of the total amount is suspected to be linked to a scam case involving a mobile application in India. However, she did not disclose the name of the application.
Among those arrested were non-Chinese residents of Hong Kong, although specific details were not provided. Authorities believe that the syndicate received remittances from India under the guise of exporting electronic devices, diamonds, gems, and precious metals. The proceeds were then funneled into bank accounts in Hong Kong for the purpose of money laundering.
Ip Tung-ching emphasized that these acts of money laundering serve as protective measures for the illegal profits of criminals. The success of the operation was made possible through the cooperation of law enforcement agencies in Hong Kong, India, and other jurisdictions.
Yu Yiu-wing, the divisional commander of the customs financial investigation bureau, highlighted the exchange of intelligence with Indian authorities, which led to the discovery that some of the money originated from two jewelry companies connected to the scam. Additionally, authorities have seized electronic devices, documents, and over 8,000 carats of suspected synthetic gemstones intended for export to India.
The investigation into this money laundering case is ongoing. It is worth noting that the previous record for a money laundering case in Hong Kong involved approximately 6 billion Hong Kong dollars ($767 million) and resulted in the arrest of nine individuals in January 2023.
