Four people arrested for laundering HK$600m through currency exchange shop

Customs have arrested two men and two women for allegedly laundering up to HK$600 million through a local currency exchange shop. 

Officers mounted the operation between Wednesday and today (Fri) after receiving intelligence last year that a currency exchange shop dealt with crime proceeds through opening shell companies and relevant stooge bank accounts. 

During the operation, customs raided four residential units and two commercial shops. The four arrestees, aged 34 to 39, were the exchange shop’s owner, compliance officer, staffer, as well as the director of another involved company. 

Investigation also revealed that three of them are family members. 

Customs said from January 2021 to this July, the compliance officer of the exchange shop established a shell company and then opened 12 accounts in four local banks.

The compliance officer claimed that shell company was in the computer trade and technological consulting business but never reported any commercial address to authorities. 

The shell company also had no records of any tax return and that officer only told the Inland Revenue Department he worked at the exchange shop. 

However, those 12 accounts handled over 1,800 transactions involving some HK$600 million with unrelated entities, including food wholesalers and shoe traders. 

Customs pointed out that the transaction pattern was abnormal as the money would stay in the account for less than a day or only a few day before it was transferred to other accounts again. The accounts once logged 19 transactions in a day with the amount reaching up to HK$19 million. 

Customs said the owner of the exchange shop and staffer both admitted their money laundering behaviors. Customs also believe they have smashed the family-run syndicate for good. 

Officer seized a number of phone, computers, and bank documents and are investigating the cash flow and sources of the crime proceeds, adding that they may make more arrests.