ICAC smashes cross-boundary money laundering syndicate allegedly facilitated by corruption
2001-9-18
The ICAC has smashed a cross-boundary criminal syndicate allegedly assisted by corrupt bank staff and arrested 39 persons including suspected syndicate members and senior bank officers.
It is believed that the syndicate has been in operation for at least five years and the amount of money laundered was estimated to be HK$50 billion.
Amongst those arrested in an on-going ICAC operation which commenced last Tuesday were a senior manager, a manager and an officer of Po Sang Bank and five shareholders and directors of a local money-changer and nine of its staff.
Also netted in the Operation "Owl" were five couriers, three money dealers and 14 others who held bank accounts for allegedly assisting in money laundering.
During the operation, the ICAC intercepted a truck after crossing the border and carried out search at the local money-changer. Amounts of cash totalling HK$8.5 million were seized from the truck and the money-changer.
The Commission has also restrained HK$70 million in suspects' bank accounts with court orders.
The ICAC had obtained the assistance from the Supreme People's Procuratorate and the Guangdong Provincial People's Procuratorate in conducting its investigation, while the bank involved also rendered full co-operation.
The ICAC received a corruption complaint, alleging that a senior bank manager might have accepted bribes to facilitate money laundering activities.
Investigations revealed that the cross-boundary syndicate had been deploying couriers to smuggle huge sums of cash, including Renminbi, Hong Kong and other foreign currencies, out of the Mainland into Hong Kong on a daily basis.
The syndicate operated in various places in Guangdong, Fujian and Hong Kong.
The daily amount of currencies smuggled through this syndicate into Hong Kong averaged at least HK$50 million.
The monies are suspected to be proceeds from tax evasion by businessmen operating in the Mainland and other criminal activities.
ICAC enquiries revealed that the illegal proceeds, after being brought into Hong Kong in cash, were first deposited into the local money-changer's accounts held at the bank. And all foreign monies were changed into Hong Kong currency.
Acting on the instructions of syndicate members, the local money-changer further disbursed these laundered monies to a large number of bank accounts held in the name of individuals and companies, or remitted overseas. So far, investigations revealed that some of these accounts were controlled by the syndicate.
The arrested senior bank manager allegedly accepted from the money- changer monetary rewards and free trips to the Mainland for disguising the huge Hong Kong dollar cash deposits as transfer deposits.
Other bank employees are also suspected to have offered assistance to the money laundering activities for bribes.
The arrestees have been released on ICAC bail. Enquiries into the corruption allegation are continuing.
It is believed that the syndicate has been in operation for at least five years and the amount of money laundered was estimated to be HK$50 billion.
Amongst those arrested in an on-going ICAC operation which commenced last Tuesday were a senior manager, a manager and an officer of Po Sang Bank and five shareholders and directors of a local money-changer and nine of its staff.
Also netted in the Operation "Owl" were five couriers, three money dealers and 14 others who held bank accounts for allegedly assisting in money laundering.
During the operation, the ICAC intercepted a truck after crossing the border and carried out search at the local money-changer. Amounts of cash totalling HK$8.5 million were seized from the truck and the money-changer.
The Commission has also restrained HK$70 million in suspects' bank accounts with court orders.
The ICAC had obtained the assistance from the Supreme People's Procuratorate and the Guangdong Provincial People's Procuratorate in conducting its investigation, while the bank involved also rendered full co-operation.
The ICAC received a corruption complaint, alleging that a senior bank manager might have accepted bribes to facilitate money laundering activities.
Investigations revealed that the cross-boundary syndicate had been deploying couriers to smuggle huge sums of cash, including Renminbi, Hong Kong and other foreign currencies, out of the Mainland into Hong Kong on a daily basis.
The syndicate operated in various places in Guangdong, Fujian and Hong Kong.
The daily amount of currencies smuggled through this syndicate into Hong Kong averaged at least HK$50 million.
The monies are suspected to be proceeds from tax evasion by businessmen operating in the Mainland and other criminal activities.
ICAC enquiries revealed that the illegal proceeds, after being brought into Hong Kong in cash, were first deposited into the local money-changer's accounts held at the bank. And all foreign monies were changed into Hong Kong currency.
Acting on the instructions of syndicate members, the local money-changer further disbursed these laundered monies to a large number of bank accounts held in the name of individuals and companies, or remitted overseas. So far, investigations revealed that some of these accounts were controlled by the syndicate.
The arrested senior bank manager allegedly accepted from the money- changer monetary rewards and free trips to the Mainland for disguising the huge Hong Kong dollar cash deposits as transfer deposits.
Other bank employees are also suspected to have offered assistance to the money laundering activities for bribes.
The arrestees have been released on ICAC bail. Enquiries into the corruption allegation are continuing.