Hong Kong police received reports that Chinese individuals opened puppet accounts to launder money, dismantling a cross-border scam group involved with nearly 300 million Hong Kong dollars.

Taiwan's scam groups hire runners to launder black money through dummy accounts. Now, Hong Kong has also erupted with cross-border scam groups extensively borrowing others' accounts for Money Laundering. In the 44,000 scam cases recorded by Hong Kong police last year, many individuals were found selling or lending "puppet accounts" to launder black money for a small reward.

In Hong Kong, money laundering nominee accounts are referred to as puppet accounts. Some of the puppet accounts in Hong Kong are used by Chinese individuals to open bank accounts in Hong Kong or to launder money through accounts of "elders," "students," and "employees." The Hong Kong Monetary Authority has also conducted outreach regarding these three types of individuals who are likely to be highly involved in such cases, amending laws to increase the penalties for drivers and nominee accounts, reminding them not to test the law.

Cross-border fraud groups use Chinese people to open accounts in Hong Kong for Money Laundering.

Hong Kong media reported that the police broke up a cross-border fraud group, arresting four men and two women, involved in illegal proceeds of nearly 300 million HKD. The police and investigators seized nineteen ATM cards and 250,000 HKD in cash, among other items.

The New Territories North Criminal Division stated that cross-border fraud groups arrange for Chinese individuals to open bank accounts in Hong Kong through the internet or in person, using small amounts of money as compensation, taking their withdrawal cards and passwords, and transferring the illicit funds into these "puppet accounts," which are then withdrawn and converted into cryptocurrency.

The six suspects arrested this time are aged between 19 and 39, one of whom holds a two-way permit for traveling between the mainland and Hong Kong and Macau. Three of them are believed to be members of a fraud gang, with two drivers being arrested while withdrawing money, and 17 suspected withdrawal cards were seized from them. The police later traced to a residential unit and a business unit in Tsuen Wan, which are believed to be the fraud gang's operation rooms. This group is involved in at least 46 cases of romance scams and loan fraud from the year before last to this year.

The Hong Kong Monetary Authority and the Hong Kong Association of Banks have launched measures to combat proxy accounts.

The Hong Kong Monetary Authority, together with the police and the Hong Kong Association of Banks, has launched multiple measures to combat puppet accounts. This includes opening up more "anti-fraud traps" to banks and stored value payment operators. Note: The app developed by the Hong Kong government for detecting suspicious calls and websites, (, allows bank operators to mark related suspicious accounts through the system and continuously monitor them. If suspicious transactions are detected, victims are promptly reminded to report to the police.

The Assistant General Manager of the Hong Kong Monetary Authority, Chan King-wang, expressed the hope that all banks will participate in actions against suspicious accounts, proactively contacting customers to visit the bank and arranging for the police to meet as well.

The Hong Kong Monetary Authority proposed amendments to the Banking Ordinance to strengthen the promotion for brokers, the elderly, and students.

The Monetary Authority has proposed amendments to the Banking Ordinance, allowing banks to disclose relevant information on a designated platform if they discover that bank accounts and transaction data involve prohibited activities, in an effort to seek legislative council approval by the end of the year to share good practices for detecting puppet accounts with the industry.

According to reports, the Hong Kong Monetary Authority has strengthened the promotion of puppet accounts specifically targeting three groups: domestic helpers, the elderly, and students, reminding them not to casually lend or sell their bank accounts. The police will apply to the court for heavier sentences against convicted puppet account holders. This year in Hong Kong, 95 people have already received heavier sentences, with prison terms ranging from 21 to 75 months.

This article reports that the Hong Kong police received information about Chinese individuals opening puppet accounts for Money Laundering, breaking up a cross-border fraud group involved in nearly 300 million Hong Kong dollars. It first appeared in Chain News ABMedia.