Money Laundering Law
Money laundering is a criminal offense under Hong Kong law. Under the Drug Trafficking (Recovery of Proceeds) Ordinance (Cap. 405)
and the Organized and Serious Crimes Ordinance (Cap. 455), any person who knows or has reasonable grounds to believe that
any property (including money) is Proceeds from drug trafficking may be indictable crimes, but still deal with the property, the person
commits the crime of money laundering. The maximum penalty is a fine of HK$5 million and imprisonment for 14 years.
Money Laundering Example
1. Deposit into different accounts
Criminals will divide a large amount of black money into several parts and deposit them in different accounts (usually under the names of different people and opened in different countries and regions), and then transfer the money to their own account by remittance, check transfer, etc. under the name.
2. Shell companies
Criminals will open several shell companies. These companies have no actual business. Although there are transactions with other companies, there is no real delivery of goods or services. Through these false transactions, black money is transferred between different companies, and eventually into the hands of criminals.
3. Investment resale
Criminals use black money to directly buy high-priced commodities such as antiques, artworks, stocks, bonds and other financial products, and then resell them on the market, and the recovered funds become legal funds.
Anti-money laundering trap
To avoid falling into the trap of money laundering, in addition to abiding by the law, you must also carefully manage your information. From time to time, victims of online scams lend their bank accounts to unknown netizens. In addition to being defrauded of money, they are also used by fraudsters to launder money because of their bank accounts, and the victims are arrested instead. Therefore, do not lend your bank account to relatives, friends, or even strangers, lest others use it for illegal purposes.
Do not assist anyone to open bank accounts
Do not lend out your bank account
Do not disclose account information