Seven members of a Chinese gang have been jailed for running a £55 million money-laundering scheme that targeted international students wanting to bypass foreign currency controls. Four people – three men and one woman – were sentenced at Snaresbrook Crown Court in the UK on Monday. In June, three others were sentenced for similar offenses. They were handed sentences ranging from 11 months to 12 years.
Short Narrative:
Seven individuals have been sentenced for their roles in a sophisticated £55 million money-laundering operation in the UK aimed at Chinese university students seeking to circumvent strict currency controls. Chinese nationals can transfer no more than $50,000 out of the country annually. The gang used “underground banking” techniques to evade these limits, providing illegal services to transfer large sums of money out of China. The scheme, which ran between February 2020 and June 2023, involved laundering funds through unregistered money service businesses and secretive cash collection methods to avoid detection.
Key Details:
- Sentenced Individuals: Ruolan Chen, Xiaoyu Shu, Ang Li. Bottom row (L-R) Yunchen Huang, Peng Liu, Qiji Wang, Yin Ying Wang
- Sentences: Ranged from 11 months to 12 years for money-laundering offenses.
- Modus Operandi: Used underground banking and a Chinese messaging app to sell British pounds to students, bypassing China’s foreign exchange limits.
- Seized Assets: Authorities confiscated nearly £500,000 in cash, cash counting machines, and multiple bank cards from various addresses.
- Sophisticated Operation: The gang used anonymous cash collection methods, including photographing unique £5 banknote serial numbers to prevent identification.
Actionable Insight:
This case underscores the growing risks associated with money laundering and the importance of financial institutions having robust compliance measures in place. Organizations must implement thorough Know Your Customer (KYC) procedures and monitor transactions closely to detect and prevent money laundering activities.
Read More: full article in The Guardian.
Whistleblower Request:
If you have information about money laundering or other financial crimes, please get in touch with us securely via our whistleblower platform, Whistle42. Your identity will remain confidential.
