Hong Kong Customs has uncovered a suspected money laundering operation involving cash smuggling and virtual assets totalling approximately HK$1.15 billion.

The operation has led to the arrest of two individuals, one local and one non-local.

According to Dimsum Daily, Customs officers launched a financial investigation targeting a 37-year-old local man and a 50-year-old non-local man.

Intelligence revealed that the pair had moved large sums of cash out of Hong Kong and conducted rapid and frequent stablecoin and fiat currency transactions originating from a suspicious funding source.

These activities were highly inconsistent with their known backgrounds and financial profiles, raising suspicions of money laundering.

Following an extensive probe, officers raided four residential addresses and two business premises, seizing mobile phones, tablets, and bank cards believed to be connected to the case.

The two men, who identified themselves as self employed and unemployed respectively, were arrested under the Organised and Serious Crimes Ordinance (OSCO) for “dealing with property known or reasonably believed to represent proceeds of an indictable offence,” commonly referred to as money laundering.

The investigation is ongoing.

Both suspects have been released on bail pending further enquiries, and authorities have not ruled out additional arrests.

Under OSCO, a person commits an offence if they handle property knowing, or having reasonable grounds to believe, that it represents, in whole or in part and directly or indirectly, the proceeds of an indictable offence.

Upon conviction, offenders face a maximum penalty of a HK$5 million fine, imprisonment for up to 14 years, and confiscation of any illegal proceeds.

Featured image credit: Edited by Fintech News Hong Kong, based on image by tiko33 via Freepik