Recently, there has been a mounting number of money laundering arrests all over the world involving Chinese nationals and syndicates. A web of links is believed to extend throughout Asia and beyond.
In the past few months, a growing number of money laundering arrests have been announced by police throughout the world, all with a common theme: China.
According to investigations, Chinese nationals and syndicates are playing a significant role in the laundering business. The source of the criminal proceeds they help launder vary from online scams to drug trafficking. Although arrests have been made only in several countries, the web of links extends beyond, from online casino operators in Southeast Asia to banking networks in the West.
finews.asia takes a look at the countries where authorities have handcuffed Chinese money laundering suspects in recent times.
Singapore
The top headline in the world is occurring in Singapore, where the largest money laundering case in the city-state’s history continues to unfold. So far, 10 individuals have been arrested with more than S$2.8 billion ($2 billion) in assets seized. Investigations have also reportedly unveiled links to Hong Kong where a suspect held assets at three banks.
While the suspects hold passports from countries like Cambodia, Cyprus, Turkey and Vanuatu, they are all originally from Fujian, an eastern Chinese province, and are related to one another either by birth or marriage.
Some are wanted in China and are allegedly linked to the «Heng Bo Bao Wang» gambling syndicate as well as Wang Bingang, founder of the «Hongli» gambling syndicate, who managed to avoid arrest during an anti-money laundering blitz in August.
Australia
Yesterday, the Australian Federal Police (AFP) announced the seizure of over A$50 million ($32 million) in assets and the arrest of seven individuals – four Chinese nationals and three Australian citizens – who are members of alleged money laundering syndicate «Long River».
The Chinese syndicate is believed to be secretly operating «Changjiang Currency Exchange», one of Australia’s largest independently owned remitters, which has been accused of laundering A$229 million in criminal proceeds from unlawful acts such as cyber scams, illegal goods trafficking and violent crimes.
This is the third China-related laundering case announced by the AFP this year. On the same day, a Chinese national was arrested and charged with allegedly using an Australian crime syndicate to help launder A$100 million stolen from victims who invested in a scam via instant messaging. And in February, the AFP charged nine members of a Chinese-Australian money laundering syndicate and seized over A$150 million in assets.
India
Staying in the Asia Pacific region, India’s financial crime agency arrested four individuals earlier this month in an alleged money laundering case, including Guangwen Kuang, a Chinese national and head of administration at phone maker Vivo.
Separately, Indian police formally accused Vivo, alongside rival Xiaomi, of helping transfer funds illegally to a news portal that is being probed on charges of spreading Chinese propaganda.
Vivo is the second largest smartphone brand in India by shipments with a 17 percent market share, according to data from research firm Counterpoint, and is owned by China’s BBK Electronics.
Italy
Also in October, Italian police arrested 33 people – including seven Chinese nationals – as part of a crackdown on money brokers who allegedly laundered over 50 million euros ($53 million) from criminal groups including the «Ndrangheta» mafia. The suspects face charges of organized criminal conspiracy for drug trafficking and money laundering.
«This is what we have tracked from 2020 to 2022, but investigations cannot trace all operations. It’s like doing a stakeout, you see 20 percent of what happens,» said Guardia di Finanza police colonel Francesco Ruis in a «Reuters» report.
«The deals between the two Chinese brokers took place through triangulations and fictitious business transactions in China, while the cash travelled by plane to China using the so-called money mules.»
Spain
In Spain, police arrested 27 individuals in September, including Albanian and Chinese nationals, for laundering an estimated 65 million euros from drug trafficking activities between May 2020 and March 2021 alone. The Spanish National Police was supported by Europol and seized over 1 million euros in assets from the group.
«The Chinese nationals played a major role in these criminal activities,» said a Europol statement, highlighting that two Chinese acted as coordinators by managing numerous Asian establishments throughout Spain, which serviced money laundering schemes for drug trafficking profits.
Web of Links
While the list above focuses on police arrests and investigations, the web of links from Chinese money laundering extends beyond.
Many trace to gambling syndicates that are based in Southeast Asian nations like the Philippines, Cambodia and Myanmar. Others lead to shadow banking networks reportedly located in the Caribbean, Switzerland, America and the United Arab Emirates.
Only a Fraction
Even if successfully charged, the arrests and probes announced represent only a fraction of the overall activities. According to the United Nations Office on Drugs and Crime, the total amount of money laundered per year is estimated to be around 2 to 5 percent of global GDP or up to $5 trillion in 2022.
Although anti-money laundering efforts can deter future criminals by increasing the risk and cost of their operations, there will likely always be sufficient appetite and new methods in the future.
«[E]ven the most stringent preventive measures can be circumvented by determined criminals,» said Josephine Teo, Singapore’s Minister for Communications and Information, in a statement on the city-state's headline laundering case. «Just as low crime does not mean no crime, zero tolerance of money laundering does not mean zero occurrence.»
