Cops get tough on stooge bank account holders

More than 200 people have been apprehended on suspicion of engaging in fraudulent activities and facilitating money laundering by providing criminals with bank accounts.

Some 550 individuals, including professionals, were taken for over HK$500 million, police said.

The operation, between January 8 and 21, was initiated by the Hong Kong Island regional police to combat scams that account for 45 percent of the area's crimes.

Those arrested - 219 people comprising 157 men and 62 women, aged between 17 and 77 years old - are linked to offenses that include obtaining property through deception, conspiracy to defraud, money laundering, and incitement to commit money laundering.

Chief inspector Lam Ka-tsing of the Hong Kong Island regional crime unit said majority of the suspects served as stooge account holders who enabled the laundering of HK$60 million from the HK$500 million in illicit funds.

"Stooge account holders act as tools employed by fraud syndicates to launder money and serve as key accomplices in these scams," Lam said.

Among the suspects are two men and one woman who allegedly enticed others through social media to sell or lend their bank accounts, promising profits ranging from HK$1,000 to several thousand dollars.

Senior inspector Hung Yu-yan of the regional crime unit cautioned the public against loaning or selling their bank accounts to make a quick profit as they could face money-laundering charges even if they were unaware of the origin or purpose of the funds.

Police expressed their commitment to combating the sale of bank accounts and sought consultation with the Department of Justice to explore increasing penalties. Presently, money laundering is punishable by up to 14 years imprisonment and a HK$5 million fine.

Many of the 558 victims - aged 17 to 80 - are highly educated and high-income individuals, including accountants, auditors, bank managers, investment consultants, and legal practitioners.

"Regardless of your background, you can become a target of swindlers," Lam said.

The most significant financial loss reported involved a 36-year-old software engineer.

Initially, scammers sent profits, but found later he could not make withdrawals after transferring HK$19 million to 42 different third-party accounts.

In another case, a 70-year-old vegetable stall owner lost his life savings of HK$12 million to scammers who impersonated officials on the phone.

The victim received a call from someone claiming to be a mainland police officer, who told him he was involved in money laundering and threatened to arrest him and his family unless he provided his bank account information.

Wu Man-yee, chief inspector of the Hong Kong Island regional crime prevention office, urged the public to be vigilant against unsolicited calls, emphasizing that police do not conduct enforcement operations through the phone.

Wu said people should be cautious before transferring money to strangers and that they can utilize the Scameter to check for suspicious or fraudulent schemes. stacy.shi@singtaonewscorp.com