Officials from the Hong Kong Customs and Excise Department revealed on Friday (Feb. 16) that they had arrested seven people linked to the territory's largest ever money laundering case to date, which involved about HK$14 billion ($1.8 billion), some of it linked to a scam case in India.
The Associated Press reported that the seven residents, aged between 23 and 74, were part of a large-scale transnational syndicate that used several shell companies and bank accounts to transfer large sums from overseas to the city under the guise of running international trading businesses. Some of those arrested were non-Chinese residents of Hong Kong.
One of the accounts seized once received as much as HK$100 million ($12.8 million) on a single day, the customs officials said.
Aside from bank accounts, officials have confiscated electronic devices, documents, and over 8,000 carats of suspected synthetic gemstones apparently meant for export to India.
Investigations on the case are continuing.
Money Laundering Case Involves Indian App
Hong Kong Customs Financial Investigation Bureau head Ip Tung-ching said that HK$2.9 billion ($371 million) of the total was suspected to be linked to a scam case involving a mobile application in India but fell short of identifying the app.
Ip added that the syndicate received remittances from India to process the exporting of electronic devices, diamonds, gems, and precious metals. Proceeds were then transferred to bank accounts in Hong Kong for money laundering.
"These acts of money laundering provide protective umbrellas for the illegal profits of criminals," she said.
Hong Kongers, Indians, and other international law enforcement agents cooperated in the success of the operation.
A 34-year-old Hong Kong resident arrested in late January was suspected to be the syndicate's mastermind, according to Hong Kong Customs divisional commander Yu Yiu-wing.
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