The police uncovered a criminal organization recruiting members from the mainland to Hong Kong for money laundering, involving mainland individuals opening puppet accounts and using selfies for fabricated face verification, leading to the arrest of three men and over HK$270 million in implicated funds.
The police cracked a criminal group recruiting members from mainland China to open accounts with digital banks in Hong Kong. They used pre-recorded selfie videos to bypass facial recognition verification, manipulating dummy accounts for money laundering.
From October 14 to 15, the police’s Financial Intelligence and Investigation Bureau, in collaboration with mainland authorities, arrested three core members, including a 32-year-old local man.
The police said that a digital bank noticed suspicious activity when users attempted online financial management. Upon requesting real-time facial recognition, individuals used pre-recorded videos to manipulate accounts.
The police found 184 accounts had been exploited, laundering approximately HK$274 million in criminal proceeds, including over HK$47 million from 337 fraud cases.
The largest loss involved a senior executive who lost HK$11 million in an online scam.
The group recruited mainland members to open accounts using their personal information, and required them to submit a selfie video, which was then used by accomplices in mainland China to launder money.
The police, in coordination with the Monetary Authority, issued warnings to banks, which quickly implemented measures against illegal activities.
The joint operation led to the arrests of three key members, including the local man, who was charged with conspiracy to commit money laundering.
Additionally, mainland authorities arrested two individuals in Shenzhen for money laundering, seizing three mobile phones related to the case.
The police said that this joint operation has dismantled the cross-border money laundering group.
