Hong Kong Police Dismantle $65 Million Mafia Money Laundering Scheme
In an effort to shut down a money-laundering operation operated by the Triad, police in Hong Kong have detained 458 persons.
There was a large money laundering network in Hong Kong, and police have detained 458 individuals in connection with it. According to reports, the sting operation shut down a Triad-controlled business that laundered money from as many as 314 crimes via cryptocurrency trading.
The current arrests reportedly took place over the period of seventeen days, as reported by local media on August 25.
In 400 distinct operations, the Hong Kong Police Department apprehended 330 males and 128 females over this time period. A total of 423 people, including locals and foreigners, were suspected.
More than 16 million yuan was believed seized by law authorities during the operation. But that’s little compared to the $64.5 million (470 million yuan) it’s thought to have processed.
Senior Superintendent Lui Che-ho was quoted by the South Shina Morning Post as saying that many of those detained were victims of exploitation by criminal gangs.
He said that criminal organizations had enticed people into money laundering by promising them rewards.
He went on to say that the gang used bank withdrawals to “wash” their tainted money. After that, they invested the money in cryptocurrency.
While fostering its cryptocurrency industry, Hong Kong is fighting money laundering. In light of his remarks, Lui Che-ho sheds insight on the common practice of money laundering networks to convert fiat currency into cryptocurrency.
Strict anti-money laundering (AML) regulations have been enforced on enterprises that deal in cryptocurrencies by regulators throughout the globe. However, Hong Kong is likewise making an effort to develop its cryptocurrency industry.
The territory’s financial regulator sent a letter to lenders in June stressing the need to ensure crypto firms aren’t subjected to “undue burden” from due diligence requirements.
The action put pressure on banks who are hesitant to take on crypto companies as customers due to anti-money laundering concerns. The letter’s recipients included major financial institutions including Standard Chartered and HSBC.
Cryptocurrency businesses have difficulties with AML regulations worldwide, not just in Hong Kong. Two-thirds of all firms examined in a recent study were worried about breaking anti-money laundering laws.