Man Sentenced to 54 Months for Laundering $10 Million Through Fraudulent Bank Account Sales

Man involved in fraudulent online money changer page convicted of money laundering

A man was sentenced to respective nine-month and 54-month imprisonment terms today (April 24) at the District Court after two earlier convictions for providing his personal bank account details and log-in credentials to unknown individuals in exchange for a monetary reward, laundering a total of about $10 million, in contravention of "dealing with property known or believed to represent proceeds of indictable offence" (commonly known as money laundering) under the Organized and Serious Crimes Ordinance (OSCO). The sentences will be run concurrently.

In December 2021, Customs officers investigated an unlicensed money service operation case and discovered that someone had set up a fake page on a social media platform, posing as a licenced money changer to provide remittance services. The fraudsters lured customers with attractive exchange rates. A victim was deceived into transferring money to a designated bank account, after which the scammer disappeared and ceased all contact. Customs traced the recipient bank account and found frequent suspicious transactions and large sums of money with unknown sources between April and June 2021, including the funds scammed from the victim. The total amount involved in the case was about $10 million.

Following an detailed investigation, Customs identified a local man who, in exchange for a monetary reward, had provided two personal bank account details and log-in credentials to unknown individuals (commonly known as selling accounts). The accounts sold were used to process large volumes of suspicious funds. Customs arrested the man in August 2022 under the OSCO and formally charged him with two counts of money laundering in November of the same year.

Customs welcomes the sentence. The custodial sentence has imposed a considerable deterrent effect and reflects the seriousness of money laundering offences. Customs emphasises that using personal bank accounts or e-wallets to handle funds from unknown sources, regardless of whether any reward is involved, may constitute the offence of money laundering. Members of the public are urged not to sell or lend their personal bank accounts or e-wallets out of momentary greed.

Under the OSCO, a person commits an offence if he or she deals with any property knowing or having reasonable grounds to believe that such property, in whole or in part, directly or indirectly represents any person's proceeds of an indictable offence. The maximum penalty upon conviction is a fine of $5 million and imprisonment for 14 years while the crime proceeds are also subject to confiscation.

Under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, a person who wishes to operate a remittance or money changing service needs to first obtain a licence from the Customs and Excise Department. The maximum penalty for such operators without a valid licence upon conviction is a fine of $1 million and imprisonment for two years.

Customs reminds consumers to procure services from licensed money service operators. A register of licensees is accessible from the website of Customs' Money Service Operators Licensing System at eservices.customs.gov.hk/MSOS/wsrh/001s1?request_locale=en.

Members of the public may report any suspected unlicensed money service operation or money laundering activities to Customs' 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

Labour Department highly concerned about fatal work accident that happened in Sham Shui Po today

The Labour Department (LD) is highly concerned about a fatal work accident that occurred at the external wall of a building in Sham Shui Po this morning (September 11), in which a male worker fell from height while erecting a truss-out scaffold on the external wall. He was certified dead later in hospital. The LD is saddened by the death of the worker and expresses its deepest sympathy to his family.

The LD's spokesman said, "We commenced an immediate on-site investigation as soon as we were notified of the accident and have issued suspension notices to the contractors concerned, suspending the erection, alteration, dismantling and use of scaffolds on the external wall of the building. The contractors cannot resume the work process until the LD is satisfied that suitable measures to abate the relevant risks have been taken."

The spokesman added, "We will complete the investigation as soon as possible to identify the cause of the accident, ascertain the liability of duty holders and recommend improvement measures. We will take action pursuant to the law if any violations are found during the investigation."

To prevent workers from falling from height while erecting scaffolds, the LD reminds contractors to take adequate safety measures, including providing every scaffolder with a suitable full-body harness that is attached continuously to a suitable and secure anchor point, an independent lifeline or a fall arresting system, and ensuring the proper use of the above safety equipment by the workers concerned throughout the work.

The general duty provisions of the Occupational Safety and Health Ordinance require employers to provide safe working environments, plant and systems of work for their employees. Those who contravene the relevant provisions are liable to a maximum fine of $10 million and imprisonment for two years.

In regard to today's accident, the LD will issue a Work Safety Alert through its mobile application "OSH 2.0", website and email, giving a brief account of the accident concerned to duty holders, workers' unions, professional bodies of safety practitioners and others, and reminding the industry of the importance of following safety precautionary measures to prevent a recurrence of similar accidents.

The LD will also remind the employer concerned of the liability for employees' compensation under the Employees' Compensation Ordinance, assist family members of the deceased to claim employees' compensation and closely follow up on the case. For those with financial difficulties, the LD will assist them to apply for appropriate emergency funds. Subject to the needs and wishes of the family members of the deceased, the LD will also liaise with the Social Welfare Department for financial or other assistance.

For the sake of securing the safety and health of employees at work, the LD appeals to employers to provide plant and systems of work that are safe and without risks to health. Employees should also co-operate with their employers, adopt all safety measures and use personal protective equipment provided properly to avoid endangering their own work safety and that of other workers.

Source: AI-found images