Hong Kong Police Arrest 67 in Major Money Laundering Crackdown

Hong Kong police have arrested 67 individuals, including 19 non-ethnic Chinese residents, in a significant operation targeting money laundering activities. Dubbed Operation Sunlit Sky, the five-day action uncovered 52 scam cases with total losses amounting to HK$73 million.

The arrests highlight the increasing trend of using virtual bank accounts for money laundering. Senior Inspector Chan Wing-yin of the Kowloon East regional intelligence unit noted a 'palpable rise' in the use of these accounts, making it easier for criminal syndicates to operate.

Why this matters: This operation highlights the growing trend of money laundering activities in Hong Kong, which can have significant implications for the country's financial system and economy. If left unchecked, it can lead to further financial crimes and undermine trust in the banking system.

Among those arrested were 19 foreign domestic workers from Indonesia and the Philippines, who were reportedly paid between HK$1,800 and HK$2,500 to open bank accounts through mobile apps. These accounts were then used by criminals to funnel illicit gains.

Inspector Wu Hoi-ling of the Cyber Security and Technology Crime Bureau (CSTCB) emphasized the vulnerability of foreign domestic workers, which stems from their low income and unfamiliarity with local laws. The police plan to hold workshops to educate these workers about the legal implications of such activities.

The operation also revealed a disturbing trend of individuals being lured through social media platforms into quick-money schemes. These schemes often involve providing personal information and bank access to criminals for a few hundred to a few thousand Hong Kong dollars, making them complicit in the money laundering process.

Cheung Man-ho, Chief Compliance Officer at Airstar Bank, highlighted the challenges posed by the simplicity and convenience of virtual banks. 'While virtual banks offer convenience, their simplicity also attracts criminal misuse,' Cheung said. The bank employs advanced technology and artificial intelligence to scrutinize customer applications and continuously monitors transactions for suspicious activities.

The police seized 20 mobile phones and five ATM cards as evidence during the operation. The largest single loss reported in the scam cases was HK$1.9 million, with victims ranging in age from 15 to 79 years old.

Senior Inspector Chan warned that account holders who knowingly deal with criminal proceeds or have reasonable grounds to know so can face up to 14 years' imprisonment and a fine of HK$5 million under the Organised and Serious Crimes Ordinance.

Key Takeaways

• Hong Kong police arrest 67 individuals, including 19 non-ethnic Chinese, in Operation Sunlit Sky.
• 52 scam cases uncovered, with total losses of HK$73 million, highlighting money laundering trend.
• Virtual bank accounts increasingly used for money laundering, making it easier for criminals.
• Foreign domestic workers targeted, paid to open bank accounts for illicit activities.
• Police warn of up to 14 years' imprisonment for account holders dealing with criminal proceeds.