Hong Kong customs authorities have apprehended three individuals in relation to a HK$1.8 billion money-laundering plot involving a cryptocurrency platform and the bank accounts of shell companies. The arrested suspects, comprising a 42-year-old woman and two men aged 48 and 60, stand accused of orchestrating a sophisticated scheme that utilized multiple shell companies and cryptocurrency platforms.

The investigation by customs officials was triggered by the detection of unusually large transactions within the bank accounts associated with these shell companies, which notably lacked tax records and physical addresses. With daily transactions amounting to as much as HK$39 million, the suspicious nature of these activities prompted a comprehensive inquiry into the matter.

The suspects allegedly set up five companies and operated 18 local bank accounts spanning the period from June 2021 to July 2022, enabling the execution of over 1,000 questionable transactions. This illicit operation involved the movement of funds from undisclosed origins through a network of entities, deliberately complicating the money laundering trail.

Florence Yeung Yee-tak, the commander of the customs’ financial investigation division, emphasized the complexities involved in investigating money laundering schemes associated with cryptocurrencies, citing the inherent jurisdictional flexibility of such transactions. Despite these challenges, the customs department proactively utilized intelligence to conduct in-depth analyses of capital flows and financial activities in order to combat financial crimes effectively.

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