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Macau Police Arrests Cross-border Money Laundering Group for Illicit Financing of HK1.1 Billion

Richard Marley
May 26, 2022
3 minutes read
1027

A group of 22 individuals were arrested by authorities in Macau and HK for suspicions of being involved in cross-border money laundering worth HK$1.1 billion.

A total of 22 people were arrested in Macau and HK by authorities from both SARs for suspicions of being involved in a cross-border money laundering criminal group said to have handled close to HK$1.1 billion (US$136 million) in illicit funds, police authorities revealed today (Wednesday).

Police authorities revealed on Wednesday, May 25 that they have identified a criminal ring responsible for opening over 100 bank accounts in Hong Kong and sending individuals to Macau for the purpose of withdrawing cash using Hong Kong ATM cards.

Following the investigation, authorities found the criminal group of 22 individuals, five of which were detained in Macau, including two Hong Kong residents, two locals, and a mainland employee.

The group planned to use the money to carry out cryptocurrency transactions through a telecommunications store in Macau, and then transfer the funds back to Hong Kong banks.

According to authorities, the criminal gang started operating in October 2020 with members opening over 181 bank accounts in Hong Kong to receive and manage funds obtained from telecom scams carried out in Hong Kong or overseas, including in the US, Canada, Australia and New Zeland.

That same year the group started to operate in Macau, using over 100 Hong Kong ATM cards to withdraw large amounts of money from local ATMs, which was used to purchase cryptocurrency “via a telecom store in Macau”, which would then be sold in an overseas platform.

The money obtained from these transactions would then be deposited back to Hong Kong accounts, and again withdrawn from Macau ATM machines, in order to conceal the illicit origin of the funds.

The group is believed to have withdrawn a total of HK$380 million in both SARs. During the investigation, two suspects admitted coming to Macau to withdraw money with their own accounts and their relative accounts and then buying cryptocurrency but deny these funds were related to illicit schemes.

The two suspects were believed to have received a total of HK$1.89 million of fraudulent money in their own bank accounts, and made more than 1,000 withdrawals in half a year, involving no less than HK$28 million.

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Danish Gambling Operator Reports Tipwin to the Police for AML Failings
Then danish gambling operator Spillemyndigheden has reported Tipwin to the police for violating the Danish Money Laundering act

According to the sources, Spillemyndigheden, the government office based in Odense, Denmark, has reported to the police that the business has failed to create risk assessments of retail bets with a lack of written policies on its retail offerings.

It is also worth mentioning that the operator also lacks complete business procedures and controls for the offerings based on land or in regards to money laundering until 25 May 2022.

In the official statement of the regulator to the police, it stated all the shortcomings of Tipwin in compliance with the anti-money laundering standards. It stated: “Spillemyndigheden notes that the rules on risk assessment, policies and business procedures are absolutely fundamental in the Money Laundering Act. By failing to prepare a risk assessment, Tipwin has not had a useful tool that has provided an overview and understanding of where and to what extent Tipwin is exposed to money laundering or terrorist financing, and what measures are in place are necessary to mitigate the risks involved.”

This clearly states that the german based gambling operator, Tipwin is exposed to the illicit crimes of money laundering and terrorist financing and has failed to comply with the AML regulations. The Danish regulator also focused on the lack of preparation from the operator on assessments of risks which are fundamental components of the anti-money laundering act.

Spillemyndigheden also added: “Preparing a risk assessment of the company’s business model is a very fundamental means of limiting the risk of money laundering. Tipwin has thus also not had policies and operational procedures that stem from the risk assessment. By failing to prepare a risk assessment, the Gambling Authority has therefore handed over the case to the police investigation.”

The authority also launched an injunction on the breach of rules and procedures in regard to the online casino and betting operations. With the main emphasis on money laundering, the regulator released a statement last month which reminded businesses in the industry of the obligations. It mentioned the regulations most firms are complied with, which are in order to prohibit the financial interactions with individuals, groups, legal bodies or countries.

In addition, Spillemyndigheden issued a 3 months deadline to Tipwin to sort out the situation.

Suggested Read: Danish Gaming Regulator Sanctions Unibet Over AML Violations

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While Australia’s vulnerability to money laundering and organized crime is obvious, firms that incorporate a robust AML Screening solution can steer clear of both money laundering and regulatory penalties. AML/CFT regulations oblige businesses to identify the ultimate beneficial owners and individuals who perform transactions for corporate customers. The FATF advises businesses to verify the identities of their customers through document verification checks and analyse the risk associated with them.

Shufti Pro’s AI-backed identity verification and Anti-Money Laundering (AML) screening solutions allow financial firms to adopt a risk-based approach. The globally acclaimed company offers services in 230+ countries and territories that ultimately overcomes the data transparency issues identified by FATF. In less than a second, financial organizations can get 98.67% accurate identity verification results.

To learn more about Shufti Pro’s AML Screening solution, get in touch with experts.

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Macau Police Arrests Cross-border Money Laundering Group for Illicit Financing of HK1.1 Billion

Crown and Star Casinos – A Stain on Australia’s Reputation

Australia’s Anti-Money Laundering Regime

How Casinos and Businesses Can Secure their Operations

What Shufti Pro Offers

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Let’s prove your customer’s

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