Parents, three children, and a money exchange owner were arrested by Hong Kong customs over alleged money laundering of nearly $400 million.
Investigations first kicked off in 2018 after a tip-off from a bank and since then, the family made 6,000 «suspicious financial transactions» involving more than HK$3 billion ($387 million) through over 100 accounts from nine banks, according to Hong Kong customs authorities.
The arrested include the parents, aged 58 and 62; the eldest son, 34; a second son, 30, who works at the money changer involved; a daughter, 25; and a 60-year old owner of the money changer. The latter suspect has been arrested and his money exchange license suspended due to suspicions over alleged transactions with the family totaling $22 million despite reporting just $3.9 million.
According to investigators, the family had around $3.9 million in assets – half in bank accounts and another half in two properties – but a monthly income of just around $9,000.
The assets held by this family are not commensurate with their profiles and backgrounds,» said the syndicate crimes investigation bureau’s senior superintendent Mark Woo Wai-kwan. We suspect this family has a hidden income which may be the crime proceeds from assisting money laundering.
Woo said the funds had come from unknown sources or shell companies and the family’s assets have since been frozen.
Investigators currently believe that the family had helped other syndicates launder crime proceeds for a cash reward.
According to Woo, investigations about the funding source and illegal activities are still underway but there are indications that third party individuals or shell company owners involved were from mainland China.
Money launderers in Hong Kong face a maximum penalty of 14 years in prison and a $650,000 fine.