Hong Kong Customs arrests 7 people in US$1.8 billion money laundering case involving India
hong kong Authorities on Friday arrested seven people in connection with the region’s largest money-laundering operation, amounting to a staggering HKD 14 billion (USD 1.8 billion).
Some of the significant amount was “linked to a mobile app scam case in India”, newswire PTI reported.
According to Suzette Ip Tung-ChingHeaded by Hong Kong’s Customs Financial Investigation Bureau, the syndicate employed “stooge” bank accounts and shell companies to facilitate the transfer of funds. Of particular note is the alleged involvement of two jewelery companies in India who are said to have handled approximately HKD 2.9 billion (USD 371 million) of laundered funds.
“The operation was linked to a mobile app scam in India and two jewelery companies in the country that allegedly handled funds worth about HKD2.9 billion (USD 371 million),” PTI quoted Suzette Ip Tung-ching as saying. “
The IP described the amount of money laundered as “staggering”, with one account receiving up to HKD100 million (USD 12.8 million) per day and having more than 50 daily transactions.
Some of those arrested were non-Chinese residents of Hong Kong, he said, without giving details.
Law enforcement in Hong Kong, IndiaThe IP said, and cooperated elsewhere in carrying out the operation, which made its success possible.
He said the suspects were accused of laundering cash through transactions involving gems and electronics, including a 34-year-old man believed to be the mastermind, the Hong Kong-based South China Morning Post newspaper reported. .
His wife, brother and father were also arrested, along with three other Hong Kong residents, accused of setting up a large number of shell companies and fake bank accounts to trade in electronics, gems and jewellery.
“These bank accounts were used to receive numerous local and foreign transactions before conducting complex and frequent trading with multiple layers of laundering,” the IP said.
According to police, puppet account holders are those who lend or sell their bank accounts to the syndicate to collect the scam money and launder the crime proceeds in exchange for hundreds or thousands of dollars.
The IP said authorities noticed a significant discrepancy between billions worth of bank transactions involving companies registered under its name and import and export declarations of approximately HKD 90 million (USD 11.50).
The Associated Press, quoting the bureau’s divisional commander Yu Yiu-wing, reported from Hong Kong that officials exchanged intelligence with Indian authorities and found that some of the money had come from two jewelery companies that Indian authorities suspected. Had said that they were linked to the scam.
Authorities seized electronic devices, documents and more than 8,000 carats of suspected synthetic gems that were apparently meant for export to India.
The previous record money laundering case involved nearly 6 billion Hong Kong dollars (US$767 million) and the arrest of nine people in January 2023.
Chinese law enforcement authorities have been detaining a large number of Chinese telcos involved in overseas telecom fraud cases and money laundering in recent months.
Chinese public security departments have solved 391,000 cases of telecommunications and online fraud from January to November 2023, the country’s Ministry of Public Security said last month.
To crack down heavily on relevant criminal activities, the ministry launched several law enforcement operations targeting telecommunications and online fraud in 2023, the state-run Xinhua news agency reported on Jan. 5.
In total, 79,000 suspects were captured, including 263 individuals who financed, led or were in charge of such activities.
The ministry has also sent task forces to countries including Thailand, the Philippines and Cambodia to participate in international law enforcement missions.
The report said that several foreign criminal bases were destroyed and more than 3,000 suspects were captured in the process. (with inputs from agencies)