HK sees 30pc surge in money laundering cases; police warn against stooge accounts

Hong Kong police recorded 4,319 money laundering cases in the first half of this year—a nearly 30 percent increase compared to the same period last year (3,364 cases)—with the total amount involved reaching HK$4.4 billion. 

Authorities attribute the rise to the growing link between money laundering and scams, with criminal syndicates increasingly tricking citizens into selling or lending their bank accounts to move illicit funds.

Criminals exploit deepfake tech to open fraudulent accounts

Chief Superintendent of Police Kelly Cheng Lai-ki of the Financial Intelligence and Investigation Bureau warned that nearly 90 percent of money laundering cases in Hong Kong are tied to fraud proceeds. 

Gangs often recruit "stooge account" holders by posting fake job ads on social media, offering quick cash in exchange for access to their bank or e-payment accounts.

"Some people, lured by money, mistakenly believe that lending or selling their accounts won’t have consequences," Cheng said. "But if those accounts are used to handle illegal funds, they’ve already committed money laundering."

Most arrested suspects were ordinary citizens who handed over their accounts—65 percent were aged 31 to 64, often low-income or unemployed, while a third were young adults (18-30), including students and domestic helpers.

Cheng also highlighted a worrying trend: criminals are using deepfake technology to bypass bank identity checks when opening fraudulent accounts. Police have already made arrests in such cases and are working with banks to strengthen verification measures.

Police expand public-private cooperation to combat money laundering

To tackle increasingly sophisticated laundering methods—including rapid fund transfers via FPS (Faster Payment System) and cryptocurrency—police are enhancing collaboration with banks and regulators.

An upgraded "FINEST" system, originally launched to share suspicious corporate account data, will now allow banks to exchange information on suspicious personal accounts by year-end, following recent legal amendments.

Harsher penalties for stooge account holders

Authorities are pushing for tougher sentences, with courts imposing extra jail time (3-18 months) in suitable cases. 

Since October 2023, 148 people have received heavier penalties for renting or selling their accounts. Prosecutions have also surged—1,484 charges were filed last year (up from just a few hundred in 2023), with 730 charged in the first half of 2025 alone.

Public awareness campaigns target youth, banks, and vulnerable groups

As part of "Anti-money Laundering Month", police are rolling out multilingual warnings in banks, street quizzes via the "Protect Your Account" campaign van, and a new youth-focused magazine, Black & White, explaining legal risks and real-life cases. A financial crime seminar on August 19 will also address deepfake fraud tactics.