Burst
Written by: Zhu Yashuang and Wang Yiyang
2021-04-13 19:39
Last update date: 2021-04-13 19:39
The police yesterday (12th) and today (13th) launched the "Wind Curtain Operation" to crack down on the use of emerging financial technologies, including virtual banks, stored value payment tools and FPS systems, to operate online gambling and money laundering The criminal group arrested 16 people, including 8 key members, and frozen relevant bank accounts involving approximately 6.8 million yuan.
According to police investigations, from April last year to January this year, the criminal group used at least 25 accounts to launder a total of approximately HK$181 million in suspected criminal proceeds.
The Chief Inspector of the Wealth Investigation Section of the Narcotics Bureau, Deng Kaitong (pictured right), said that the police launched a "wind curtain operation" for two consecutive days to crack down on a criminal syndicate that used emerging financial technology to operate online gambling and money laundering, and arrested 16 people.
(Photo by Wang Yiyang)
Chief Inspector of the Wealth Investigation Section of the Police Narcotics Bureau, Deng Kaitong, said that through intelligence collection and analysis, the police found that criminal syndicates set up gambling websites overseas to provide illegal online gambling activities including sparrow, poker and baccarat; FPS or stored-value payment tool accounts receive bets, and then virtual bank accounts are used to obtain suspected criminal benefits, and online banking or FPS systems are used to process criminal benefits, making it more difficult for the police to freeze funds.
Criminal group members act as intermediaries to solicit gamblers through social networking sites, claiming to provide online casino services. Gamblers can redeem gambling bets or return Hong Kong dollars for HK$2 per cent, and open online casino accounts. Both parties can use FPS or Stored-value payment instrument account transactions.
(Photo by Wang Yiyang)
The criminal group members acted as intermediaries to solicit gamblers through social networking sites, claiming to provide online casino services. Gamblers can exchange HK$2 and 1 cent for gambling bets or exchange them for Hong Kong dollars, and open online casino accounts.
In addition to opening multiple virtual bank accounts, members of the group also recruit family members, friends and others to open accounts as puppet account holders in order to collect criminal proceeds.
From April last year to January this year, HK$181 million was cleaned
For the convenience of operation, the criminal syndicate rents a factory building unit as a betting and operation center to solicit gamblers, accept bets and process criminal proceeds; and use a large number of smart phones and computers to centrally and systematically operate virtual bank accounts, and Use online banking or FPS systems to quickly transfer the proceeds of crime and conceal the whereabouts of capital flows.
The proceeds of the crime ultimately fall into the bank accounts of the group members or puppets and are withdrawn in the form of cash.
After an in-depth investigation by the police, it was discovered that the syndicate used at least 25 accounts to cleanse a total of approximately HK$181 million in suspected criminal proceeds from April last year to January this year.
Detained 13 males, 3 females and 3 underworld background
The police launched the "Wind Curtain Operation" yesterday and today to search the group’s factory buildings and various places, using "conspiracy to accept bets" and "handling of property known or believed to represent the proceeds of an indictable crime" (commonly known as "Money Laundering Crime") arrested 13 men and 3 women, aged between 21 and 56, including 8 key members, on suspicion of "conspiracy to accept bets."
The arrested persons claimed to be clerks, construction workers, sales clerks and unemployed, etc. The 3 persons had triad background
During the operation, the police seized cash, multiple computers, smart phones, more than 80 telephone prepaid cards, the same batch of bank withdrawal cards and documents, and frozen relevant bank accounts involving approximately 6.8 million yuan.
The arrested persons are still being detained for investigation and the operation is still in progress. The police do not rule out that more people will be arrested.
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