Police bust cross-border money laundering group believed to have laundered about HK1.1 bln in illicit funds

A total of 22 people were arrested in Macau and HK by authorities from both SARs for suspicions of being involved in a cross-border money laundering criminal group said to have handled close to HK$1.1 billion (US$136 million) in illicit funds, police authorities revealed today (Wednesday).

After investigation, authorities uncovered a criminal group which had opened more than 100 bank accounts in Hong Kong and sent staff to Macau to use Hong Kong ATM cards to withdraw money at ATMs.

Of the 22 people arrested during the operation, five were detained in Macau, including two Hong Kong residents, two local residents and a mainland employee.

The money would then be used to conduct cryptocurrency transactions through a telecommunications store in Macau, with the funds then transferred back to Hong Kong banks.

According to authorities, the criminal gang started to operate in October 2020 with members opening over 181 bank accounts in Hong Kong, to receive and manage funds obtained from telecom scams carried out in Hong Kong or overseas, including in the US, Canada, Australia and New Zeland.

That same year the group started to operate in Macau, using over 100 Hong Kong ATM cards to withdraw large amounts of money from local ATMs, which was used to purchase cryptocurrency “via a telecom store in Macau”, which would then be sold in an overseas platform.

The money obtained from these transactions would then be deposited back to Hong Kong accounts, and again withdrawn from Macau ATM machines, in order to conceal the illicit origin of the funds.

The group is believed to have withdrawn a total of HK$380 million in both SARs.

During the investigation, two suspects admit coming to Macau to withdraw money with their own accounts and their relative accounts and then buying cryptocurrency but deny these funds were related to illicit schemes.

Thes two suspects were believed to have received a total of HK$1.89 million of fraudulent money in their own bank accounts, and made more than 1,000 withdrawals in half a year, involving no less than HK$28 million.

More suspects are believed to be on the lam, with the five local detained suspects to face charges for organized crime and money laundering, and sent to the Public Prosecutions Office for processing.