2 arrested in raid on Hong Kong syndicate accused of laundering HK$4.7 billion

Hong Kong customs officers have arrested two men in a crackdown on a syndicate accused of laundering HK$4.7 billion (US$600.54 million) in criminal proceeds over four years and running a drug business.

Investigators from customs’ financial investigation bureau said on Thursday the group operated through two companies, receiving large sums of unexplained funds and channelling them through more than 2,100 transactions.

The money‑laundering tactics involved shell companies, frequent transfers and multiple local bank accounts, according to authorities.

A 66‑year‑old man, the sole board director and shareholder of the two firms since 2021, allegedly opened 38 accounts across six local banks and claimed to be engaged in importing and exporting and the electronics businesses.

The Customs and Excise Bureau said most of the 120 companies linked to the transactions were shells with no real business operations. The largest single transfer exceeded HK$31 million.

During raids on the companies’ premises, officers discovered about 1kg (2.2lbs) of narcotics, including methamphetamine, cocaine, ketamine, amphetamine and cannabis worth HK$320,000.