Hong Kong customs has arrested four individuals, including two masterminds and two key members, for allegedly operating a large-scale money laundering syndicate that utilized shell companies and over 50 bank accounts to launder approximately HK$2.6 billion in crime proceeds over a year and a half.
The syndicate, which was uncovered earlier this year, established multiple shell companies and recruited employees from money changers to open more than 50 bank accounts across four local banks.
Between August 2023 and January 2025, the group conducted over 6,000 high-value transactions through these accounts.
According to the customs’ financial investigation bureau, two of the arrested individuals—a 25-year-old local man and a 52-year-old local woman—were working at two different money service operators.
They are believed to have used a secretarial service to set up three local shell companies purportedly engaged in electronics, trading, and marketing. These companies had no actual business operations, no presence at their registered addresses, and no record of any import or export declarations.
The two core members, under the direction of the suspected masterminds—two local men aged 53 and 56—used these companies to conduct frequent large transfers involving more than 1,800 counterparties.
Funds were rapidly moved in and out of the accounts in a layered manner, with some transactions immediately redirected back to the original accounts in a “U-turn” pattern—a hallmark of money laundering operations.
One example cited was an account that received five deposits totaling HK$2.3 million within two days, only to transfer the full amount to a third-party account the following day.
Many transactions involved companies in unrelated sectors, such as seafood and watches, further raising suspicions, said customs.
Customs emphasized that the two money service employees, as financial industry practitioners, should have been well aware of anti-money laundering requirements but knowingly broke the law.
After months of financial tracing and investigation, Customs launched an operation from late August to mid-September, arresting the four individuals and searching multiple residential and business addresses.
They seized mobile phones, computers, company and bank documents, and bank cards. Assets worth approximately HK$2.5 million, including bank deposits and property, were frozen.
All four suspects have been released on bail as the investigation continues. Customs did not rule out further arrests and reminded the public not to allow their bank accounts to be used for processing funds of unknown origin, warning that such actions could lead to money laundering charges.
Sources: The Standard
