According to an article published by Kelly Ho in the Hong Kong Free Press, Hong Kong police arrested 20 individuals, including 14 Indonesian domestic workers, over the weekend for their involvement in a money laundering scheme that funneled over HK$10 million through “stooge” bank accounts. The arrests highlight the increasing use of foreign domestic workers as “money mules” in financial crimes orchestrated by local syndicates.
Understanding Money Mules
In money laundering jargon, “money mules” are individuals who transfer illegally acquired money on behalf of others, often through their bank accounts, in exchange for a small commission or fee. By providing their bank accounts for criminal syndicates to launder money, these domestic workers became money mules, a common phenomenon in the money laundering scene.
Syndicate Operations and Triad Involvement
Acting Chief Inspector Eric So of the Kowloon East Regional Crime Unit detailed the syndicate’s operations. The criminal network targeted foreign domestic workers, luring them with monetary incentives ranging from HK$1,000 to HK$2,500 to create bank accounts under their names. These accounts were then controlled entirely by the syndicate.
Investigations uncovered that the accounts were opened in public places such as parks, fast food outlets, or hotel rooms using mobile applications. Once deposits from fraud victims were made into these stooge accounts, the funds were swiftly transferred to other accounts to evade detection by authorities.
Among the 20 arrested, six Hong Kong men and two women were identified as key members of the syndicate. The remaining 12 acted as stooge account holders, with some having connections to triad organizations. The group had reportedly opened at least 17 bank accounts, laundering proceeds from 39 fraud cases, including shopping scams, advance fee fraud, and online romance scams, totaling approximately HK$5.4 million in losses.
Legal Consequences and Warnings
Senior Inspector Adrian Ng emphasized the operation’s success in dismantling a syndicate actively involved in local money laundering. The arrested individuals are currently under investigation. The police warned the public, especially migrant domestic workers, about the severe legal repercussions of lending, renting, or selling their bank accounts to criminal syndicates. Under the Organized and Serious Crimes Ordinance, individuals convicted of money laundering can face up to 14 years in prison and a fine of up to HK$5 million.
So indicated that police might seek advice from the Department of Justice to impose harsher penalties on stooge account holders, depending on the severity of their involvement in such cases.
This operation serves as a stark reminder of the legal risks and severe penalties associated with participating in financial crimes. It underscores the importance of understanding and avoiding the role of a money mule, which can lead to serious legal consequences.
