See More

Hong Kong Police Take Down $65 Million Triad Money Laundering Operation

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • Hong Kong police have arrested 458 people in a crackdown on a Triad-controlled money laundering network.
  • The operation intercepted over 16 million yuan ($2.2M) but is suspected of processing up to 470 million yuan ($64.5M).
  • Despite strict AML regulations, Hong Kong is striving to cultivate its crypto sector while preventing crime.
  • promo

Police in Hong Kong have arrested 458 people in relation to an extensive organized crime money laundering network. The sting reportedly brought down a Triad-controlled operation that used crypto trades to wash the proceeds of as many as 314 crimes.

According to local media reports on August 25, the recent string of arrests occurred over the course of seventeen days.

Triad Money Laundering Operation Washed $64.5M in Criminal Earnings

During this period, the Hong Kong Police arrested 330 men and 128 women in 400 separate raids across the city. The suspects included 423 Hongkongers and travelers from mainland China and elsewhere. 

As part of the operation, law enforcement reportedly intercepted more than 16 million yuan ($2.2M). However, this pales compared to the 470 million yuan ($64.5M) it is suspected of processing. 

In a statement reported by the South Shina Morning Post, Senior Superintendent Lui Che-ho said that many of the people arrested had been taken advantage of by organized crime syndicates.

“Criminal syndicates lured them into money-laundering activities with monetary rewards,” he said. “They were paid hundreds to thousands of dollars each, but had to hand over the details of the bank accounts used to process the illegal funds.”

Continuing, he said that the group laundered dirty money by withdrawing it from bank accounts. They then used the cash to purchase cryptocurrencies.

Hong Kong Battles Money Laundering While Fostering Its Crypto Sector

Lui Che-ho’s comments highlight the way such money laundering rings often swap fiat for crypto to help hide the trail of illicit funds.

Regulators around the world have imposed strict anti-money laundering (AML) rules on businesses that deal with crypto. But Hong Kong is also attempting to cultivate its crypto sector. And at times, the two objectives can seem at odds.

For example, Hong Kong’s AML regulations require banks to carry out so-called due diligence checks on their customers.

But in June, the territory’s financial regulator sent a letter to lenders emphasizing that due diligence procedures shouldn’t place an “undue burden” on crypto businesses.

The intervention applied pressure to lenders that are reluctant to take on crypto firms as clients over AML concerns. Major banks including Standard Chartered and HSBC, were among the letter’s recipients.

Of course, Hong Kong isn’t the only place where AML rules present a challenge to companies that deal with cryptocurrency. One recent report found that two-thirds of all businesses surveyed expressed concerns about the possibility of violating AML regulations.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-1944.png
James Morales
James is a London-based editor, writer and explorer of the cryptosphere who started his journalistic career writing about digital art before honing his craft as a financial technology reporter. From the latest innovation in digital assets to the evolution of Web3, he is perpetually fascinated by the technologies of decentralization.
READ FULL BIO
Sponsored
Sponsored