$65 Million Triad Money Laundering Operation Busted by Hong Kong Police

In a major crackdown, Hong Kong’s law enforcement authorities have successfully dismantled an extensive money laundering network linked to organized crime.

The operation, allegedly controlled by a Triad group, utilized cryptocurrency trades to launder funds obtained from over 300 criminal activities.

Over a period of seventeen days, a total of 458 individuals were apprehended by the Hong Kong Police. Among those arrested were 330 men and 128 women, spread across 400 separate raids conducted throughout the city.

The suspects comprised both Hong Kong residents and travelers from mainland China and other locations.

Reports indicate that during the operation, authorities managed to seize more than 16 million yuan (roughly $2.2 million) of illicit funds.

However, the money laundering ring is suspected of processing a staggering 470 million yuan (approximately $64.5 million).

Senior Superintendent Lui Che-ho highlighted that many of the arrested individuals had been manipulated by organized criminal groups, which lured them into money laundering activities by promising monetary rewards.

These individuals were paid varying amounts, but the catch was that they had to provide details of their bank accounts for processing the illegal funds.

The laundering process involved withdrawing the tainted money from bank accounts and subsequently converting it into cryptocurrencies. This technique is often employed to obscure the origins of illicit funds.

Hong Kong’s battle against money laundering aligns with its efforts to nurture its growing cryptocurrency sector. The city grapples with the challenge of maintaining strict anti-money laundering (AML) regulations while simultaneously fostering its cryptocurrency industry.

A case in point is the AML rules requiring banks to conduct thorough due diligence on their customers. In contrast, the city’s financial regulator conveyed a message to lenders in June, indicating that AML procedures should not unduly burden crypto-related businesses.

This move aimed to ease the apprehensions of banks hesitant to engage with crypto firms due to AML concerns, with notable institutions like Standard Chartered and HSBC receiving the regulator’s communication.