Two held over $35m laundering scheme using ‘puppet accounts’

Hong Kong Customs has arrested two local men over an alleged HK$35 million money laundering operation involving so-called “fast accounts,” with one suspect allegedly instructed to stay briefly in Shenzhen to create the appearance that he was running a business on the mainland.

The two men, both aged 33, were arrested yesterday on suspicion of dealing with property known or believed to represent proceeds of an indictable offense. Customs said the pair allegedly sold or provided control of their personal bank accounts to a criminal syndicate to process suspected illicit funds.

The case emerged from a financial investigation linked to a drug case in 2025, according to a Customs spokesman.

The first suspect, who claimed to work as a telecommunications repairman, allegedly sold access to his personal bank account to criminals through an instant messaging platform in return for payment.

Before the account was handed over, it recorded only sporadic transactions ranging from several hundred to a few thousand dollars a month. But within a month of the alleged sale, more than HK$1.7 million from numerous third-party accounts was deposited into it.

The funds generally remained in the account for no more than two days before being transferred elsewhere.

Investigators found that the man was allegedly instructed by the laundering syndicate to stay temporarily in Shenzhen and make purchases there to create the appearance that he had started a business on the mainland and to establish a record of daily activity.

He was also allegedly given several hundred dollars a day for living expenses.

During his stay, members of the syndicate would allegedly visit his hotel room, operate his mobile phone and log in to his online banking account to conduct frequent transactions.

Customs said almost all of the HK$1.7 million received by the first suspect’s account was subsequently transferred to the personal bank account of the second suspect.

The second man, who claimed to work as a logistics assistant, allegedly received HK$33.5 million in unexplained funds through his personal account between January 2024 and August 2025.

The money was then transferred within short periods to numerous third-party accounts in Hong Kong.

Investigators found that the average incoming transaction was about HK$7,800, while the average outgoing transfer was around HK$16,000 — roughly double the amount — a pattern Customs described as consistent with the consolidation of funds during the money laundering process.

The account recorded around 5,800 transactions involving more than 1,000 counterparties during the period, equivalent to an average of about 292 transactions a month.

Customs said the transaction volume and value were far beyond what would normally be expected of a personal bank account and were disproportionate to the suspect’s reported financial background.

Investigators believe both accounts were used as “puppet accounts” for handling suspected criminal proceeds.

The first account was allegedly used to collect funds from a range of sources before the money was transferred to the second account, where smaller sums were consolidated and sent on to other accounts. Customs believes the layered transactions were intended to obscure the true origin of the funds.

There is currently no evidence that the two arrested men knew each other, according to investigators.

Customs also said the money traced so far had been transferred only through local bank accounts, with no evidence at this stage that overseas accounts were involved.

The department will continue investigating the backgrounds of the two men, the source and destination of the funds and the laundering syndicate allegedly behind the operation.

Customs will also seek legal advice from the Department of Justice before deciding on further action. Officers did not rule out more arrests as the investigation continues.
 

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