Hong Kong police arrest 19 in crackdown on money laundering syndicate handling HK$100 million in suspected crime proceeds

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 discovered the money laundering outfit while investigating the defrauding of a local bank out of HK$3.1 million through loan applications allegedly filed by five core members of the gang, the force on Thursday said.

The five set up accounts with the virtual bank, before applying for loans between September last year and March this year.

After receiving the money from the successful applications, 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.

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The five had claimed their personal information was used by someone else to apply for the loans, police said, describing the move as an alleged attempt to mislead officers and avoid repaying the money.

“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, the bureau’s acting chief inspector, 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 from the bureau arrested 15 men and four women in a series of raids across the city on Wednesday.

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Police during the operation also seized documents, mobile phones and bank cards.

The suspects included the group’s suspected ringleader, aged 30, and the five core members. Police said some of those arrested 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, they were still in police custody. The force said the investigation was ongoing and further arrests were possible.

In Hong Kong, 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.