In a major crackdown on cross-border financial crimes, Hong Kong authorities have convicted two men for their roles in a large-scale money laundering operation that moved over HK$18 million (US$2.3 million) in undeclared cash into the city.
The two non-local individuals were sentenced to 28 and 30 months in prison respectively by the District Court on Monday. Their convictions stem from an investigation by Hong Kong Customs that began in February 2023 when officers intercepted an air parcel arriving from Korea that was falsely declared as containing clothing and books.
Upon inspection, customs officers discovered over HK$1.2 million (US$150,000) in undeclared foreign currency inside the parcel. This led to the arrest of the two men in the Tai Kok Tsui neighborhood, and subsequent investigations revealed the breadth of their illicit activities.
Authorities found that the duo had been repeatedly importing large sums of undeclared cash into Hong Kong since December 2022, in an apparent effort to launder the proceeds of unspecified criminal activities. The total amount involved was estimated to be around HK$18 million (US$2.3 million).
“The custodial sentence has imposed a considerable deterrent effect and reflects the seriousness of money-laundering offences,” a Hong Kong Customs spokesman said in a statement following the sentencing.
Under Hong Kong’s Cross-boundary Movement of Physical Currency and Bearer Negotiable Instruments Ordinance, importing or exporting more than HK$120,000 (US$15,000) in undeclared cash is a criminal offense, punishable by a fine of up to HK$500,000 (US$63,500) and two years in prison. The men were also charged under the Organized and Serious Crimes Ordinance, which carries a maximum penalty of a HK$5 million (US$635,000) fine and 14 years in prison for money laundering.
The crackdown underscores Hong Kong authorities’ commitment to combating cross-border financial crimes and preserving the city’s reputation as a secure and transparent international financial hub.
Members of the public may report any suspected violation of the above-mentioned ordinances to Customs’ 24-hour hotline 2545 6182 or its dedicated crime-reporting email account (crimereport@customs.gov.hk)
