Police arrest 82 in money laundering bust, freezing assets worth $1.13b

The police announced on Wednesday the arrest of 82 people in relation to money laundering and conspiracy to defraud, resulting in the freezing of assets totaling HK$1.13 billion and the seizure of HK$9 million in cash and luxury goods in a citywide anti-triad operation.

The spokesperson stated that the group has been expanding over the past two and a half years, with criminal activities spanning across illegal gambling, drug trafficking,  illegal debt collection, and fraud schemes. 

Following a joint investigation and in-depth intelligence gathering, the police conducted raids on numerous companies across the city on Tuesday (Jul 29).

The 82 arrestees -- 55 men and 27 women aged between 19 and 78 -- were arrested on suspicion of money laundering and conspiracy to defraud. 

Among them, a 44-year-old man was believed to be the mastermind of the money laundering syndicate who entrusted his family, close female friends and key members to engage in money laundering activities.

Reports suggest that he controlled properties valued at over HK$100 million, including real estate, vehicles, watches, and virtual assets.

First money laundering case involving a trust company

The investigation also uncovered a money laundering scheme involving a trust company controlled by a triad gang since 2021. 

Transactions totaling approximately HK$39.6 billion were traced from 2022 to 2024, where the group opened multiple bank accounts in different banks to transfer unknown assets to the company's accounts over a 21-month period.

Many of these funds originated from shell companies, funneled into the trust company's accounts, and subsequently redirected to various individual accounts believed to be dummy accounts.

The funds were allegedly used for purchasing virtual assets and covering credit card expenses, including luxury handbags, watches, and jewelry.

When the banks inquired about these suspicious large transfers, the company would submit falsified documents to present the transactions as legitimate.

The investigation further revealed that these fabricated documents included trust agreements supposedly signed with clients. However, these trust agreements were riddled with errors, such as incorrect identity card numbers and dates. 

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During the sudden raid at the company's premises in Kowloon Bay on Tuesday, the police seized HK$1.1 million in cash and relevant documents.

Eight men and two women, aged between 27 and 59, including directors and staff members, were arrested at the scene. 

Notably, there was a compliance officer and a money laundering reporting officer among the arrestees.

Additionally, assets of HK$1.13 billion were frozen, and approximately HK$8.26 million in cash and over HK$7 million worth of evidence were seized, including over 1,100 bottles of liquor, luxury watches, jewelry, handbags, gold jewelry, tea, and numerous bank documents. 

The police said the operation is ongoing, and has not ruled out further arrests.

(Phoebe Poon)