22nd July 2025 – (Hong Kong) Hong Kong Customs uncovered a suspected money laundering scheme involving cash smuggling and virtual assets amounting to around HK$1.15 billion. The operation resulted in the arrest of one local individual and one non-local individual.
Acting on intelligence, Customs officials targeted a 37-year-old local man and a 50-year-old non-local man, kickstarting a financial probe. It emerged that the pair had illicitly moved cash out of Hong Kong and engaged in rapid and frequent stablecoin and fiat currency transactions from a dubious funding source, a stark mismatch with their known backgrounds and financial standings. They are under suspicion for their involvement in money laundering activities.
After extensive investigations, Customs officers carried out raids this morning on four residential locations and two businesses, confiscating various items linked to the case, including mobile phones, tablets, and bank cards. The two men, claiming to be self-employed and unemployed, were apprehended for contravening the Organised and Serious Crimes Ordinance (OSCO) by “dealing with property known or reasonably believed to represent proceeds of an indictable offence,” commonly known as money laundering.
The investigation is ongoing, and the two detained individuals have been released on bail pending further inquiries. Authorities have not ruled out the possibility of additional arrests.
Under OSCO, individuals commit an offence if they handle property while knowing or having reasonable grounds to believe that the property, either wholly or partially, directly or indirectly, represents the proceeds of an indictable offence. Upon conviction, the maximum penalty includes a fine of $5 million and up to 14 years of imprisonment, with the illicit gains subject to confiscation.