Hong Kong police bust HK$24m money laundering ring, arrest 11
Hong Kong police arrested 11 people in a two-day operation targeting a money laundering syndicate linked to 85 scams totalling HK$24 million in losses. The group allegedly lured victims with fake loan offers and used their bank accounts to launder HK$70 million in criminal proceeds.
Hong Kong police have arrested 11 people in a two-day operation targeting a money laundering syndicate linked to 85 fraud cases involving more than HK$24 million (US$3.1 million) in losses, authorities said on 4 November.
The suspects, eight men and three women aged between 19 and 43, were arrested on suspicion of conspiracy to defraud, money laundering and criminal intimidation. Police said they had earlier identified a local money laundering syndicate believed to have processed about HK$70 million in suspected criminal proceeds.
According to police, syndicate members advertised online so-called “no-credit-check loans” to lure members of the public into borrowing money. When borrowers could not repay, the group offered to waive the debt in exchange for the victims handing over their personal identification documents and bank records.
When acquiring bank accounts from sellers, syndicate members not only bought existing accounts but also required the sellers to open online banking accounts on the spot. These so-called “mule accounts” were then used to launder money through multiple layers of transfers to make it harder for authorities to trace the funds.
Police urged the public not to rent, lend or sell their personal bank accounts or sensitive information. Even if individuals do not directly participate in the fraud process, lending or selling their accounts for money laundering purposes makes them accomplices to the money laundering syndicate, authorities warned.
