A A
B B
DCCC 994/2024
C [2025] HKDC 919 C
D IN THE DISTRICT COURT OF THE D
HONG KONG SPECIAL ADMINISTRATIVE REGION
E E
CRIMINAL CASE NO 994 OF 2024
F F
----------------------------
G G
HKSAR
H v H
WAN MINQIANG
I I
----------------------------
J J
Before: His Honour Judge Tam
K K
Date: 29 May 2025
L Present: Mr Wong Kevin C W, counsel-on-fiat, for HKSAR L
Mr Li Shu Pui, Dickson, instructed by Wong & Co, assigned
M M
by the Director of Legal Aid, for the defendant
N N
Offence: Dealing with property known or believed to represent
O
proceeds of an indictable offence（處理已知道或相信為代 O
表從可公訴罪行的得益的財產）
P P
Q ----------------------------------------- Q
REASONS FOR SENTENCE
R R
-----------------------------------------
S S
1. Mr Wan pleaded guilty before me to one charge of Dealing
T T
with property known or believed to represent proceeds of an indictable
U U
V V
-2-
A A
B B
offence, contrary to section 25(1) and (3) of the Organized and Serious
C Crimes Ordinance, Cap 455. C
D D
2. Particulars are that he, between 30 November 2020 and 17
E December 2020, both dates inclusive, in Hong Kong, knowing or having E
reasonable grounds to believe that property, namely a total sum of
F F
$4,546,163.66 Hong Kong currency in an account numbered 405-8-
G 778155-1 held in the name of Mr Wan with Standard Chartered Bank G
(Hong Kong) Limited, in whole or in part directly or indirectly, represented
H H
any person’s proceeds of an indictable offence, dealt with the said property.
I I
Facts admitted by Mr Wan
J J
K 3. A male victim (aged 82) was defrauded a total sum of about K
$7.5 million. His monies were deposited into 9 bank accounts between 28
L L
October 2020 and 15 December 2020.
M M
4. In particular, on 8 December 2020, a sum of $400,000 was
N N
deposited by bank transfer into a bank account numbered 405-8-778155-1
O held in the name of Mr Wan with Standard Chartered Bank (Hong Kong) O
Limited (“the Account”).
P P
Q 5. The Account was opened by Mr Wan on 23 November 2020. Q
He was the sole signatory of the Account. He reported to be an engineer,
R R
earning $18,000 a month.
S S
T T
U U
V V
-3-
A A
B B
6. Between 30 November 2020 and 17 December 2020, a total
C sum of $4,546,163.66 was deposited into the Account; a corresponding C
total sum of $4,546,111 was withdrawn from the Account, leaving a low
D D
balance of $52.66 as at 17 December 2020.
E E
7. During the above period, there were observable patterns of
F F
money laundering in the Account, namely mirror pattern (same or
G aggregate amount being deposited and withdrawn), quick speed of G
dissipation of funds and low remaining balance. The Account was being
H H
used as a temporary fund depository.
I I
8. The Account was closed on 16 March 2021.
J J
K 9. On 30 December 2021, Mr Wan was arrested. K
L L
10. Inland Revenue Department records show that Mr Wan’s
M reported income was incommensurate with the amounts transacted in the M
Account.
N N
O 11. Mr Wan now admits the particulars of the charged offence. O
P P
Criminal record
Q Q
12. Mr Wan has three previous dissimilar convictions, the last two
R R
of which relate to offences committed after the present offence.
S S
T T
U U
V V
-4-
A A
B B
Antecedents
C C
13. Mr Wan is aged 46 (41 at the time of the offence), educated
D D
to F3 level in the Mainland. He was unemployed at the time of arrest. Mr
E Wan is divorced. E
F F
Mitigation
G G
14. Mr Dickson Li of counsel assigned by the Director of Legal
H H
Aid mitigated on behalf of Mr Wan. The following is a summary of the
I mitigation submissions. I
J J
15. Mr Wan was born in the Mainland and came to settle in Hong
K Kong in 2018. He is a divorcee. His son is studying for secondary K
education in the Mainland (with subsidies from his mother’s Mainland
L L
neighbours). Mr Wan’s mother (in her 60s) is living in Hong Kong.
M M
16. Mr Wan lent his subject bank account to other people for their
N N
use in order to set off a gambling debt in the sum of about $3,200.
O O
17. Before arrest, Mr Wan had been working as an odd job man
P P
in construction industry.
Q Q
18. This is the first time Mr Wan got into trouble with money
R R
laundering offences.
S S
T T
U U
V V
-5-
A A
B B
19. In Secretary for Justice v Wan Kwok Keung [2012] 1 HKLRD
C 201, the Court of Appeal in para 15 said that the Court (differently C
constituted) has earlier summed up in HKSAR v Hsu Yu Yi [2010] 5
D D
HKLRD 545 that the sentence for money laundering charges would be like
E (as starting point): E
F F
(a) 3 years or so between $1m and $2m;
G G
(b) 4 years or so between $3m and $6m; and
H H
I (c) Over 5 years where it is above $10m. I
J J
20. In HKSAR v Yam Kong Lai, CACC 458/2006, where the
K amount of money involved was USD500,000, the Court of Appeal allowed K
the appeal against sentence on an offence of money laundering by reducing
L L
sentence (after trial) of 5 years to one of 4 years (see paras 1 and 31).
M M
21. The amount in the present case is about $4.5m which is
N N
similar.
O O
22. Mr Li will not dispute the OSCO Notice nor argue against the
P P
prevalence of the crime in issue.
Q Q
23. In HKSAR v Fong Chi Yam, CACC 411/2017, the applicant
R R
was charged with 2 offences of money laundering originated from a
S background of fraud (see paras 1 & 5). The present case is similar in that S
T T
U U
V V
-6-
A A
B B
$400,000 of the $7.5m fraud proceeds was deposited into Mr Wan’s bank
C account. C
D D
24. There is no evidence to show Mr Wan has taken part in or has
E knowledge of the predicate offence. E
F F
25. In paras 105-106 of Fong Chi Yam, the Court of Appeal held
G that people should not be penalized further in respect of crimes that they G
did not take part in nor had knowledge of.
H H
I 26. The Court of Appeal went on to dismiss the enhancement of I
sentence made by the sentencing judge (see para 106).
J J
K 27. In appropriate circumstances, the court could reduce sentence K
where there has been delay in prosecution: DCCC 996/2022; DCCC 314
L L
& 363/2021 (Consolidated).
M M
28. Mr Wan was arrested in December 2021. After about 6
N N
months, he was released with return of bail money. Mr Wan returned to
O his normal life and resumed work in construction industry. On 5 July 2024, O
when Mr Wan tried to visit the Mainland, he was stopped at the border.
P P
Q 29. The present case is about one bank account for a period of less Q
than one month. It was therefore submitted there might have been some
R R
delay.
S S
T T
U U
V V
-7-
A A
B B
30. It was submitted that Mr Wan should be sentenced in the most
C lenient way. C
D D
31. Mr Li submitted on behalf of Mr Wan a mitigation letter
E written in Chinese by Mr Wan himself. The contents are generally that Mr E
Wan is regretful and apologizes to the Hong Kong Government and the
F F
victim. Mr Wan asks for lenient sentence so that he may return home early
G to attend to her mother and to see his son. G
H H
Sentence
I I
32. There is one aggravating feature in relation to Mr Wan: he
J J
committed the present offence whilst on court bail for WKCC 684/2020.
K K
33. I have seen the Prosecution Timeline produced by the
L L
prosecution. There was a time lapse of about 14 months (from January
M 2022 to March 2023) from initial arrest to the seeking of legal advice. M
There followed another time lapse of about 10 months (from March 2023
N N
to January 2024) when legal advice was pending. Although this case
O involved only one defendant and one bank account, it is linked to at least O
one fraud case in which $7.5 million was lost. There is also no evidence
P P
that Mr Wan made any admissions on arrest.
Q Q
34. Bearing in mind that even normal investigation and normal
R R
rendering of legal advice would take some time, and that both the police
S and the Department of Justice are busy departments, I am not satisfied that S
there was unreasonable delay, which was a prerequisite for relying on it as
T T
U U
V V
-8-
A A
B B
a mitigating factor. Another essential condition before this mitigation can
C be made out is there must be either additional stress or rehabilitation C
attempt by the defendant in the interim period. There is no evidence of
D D
either in the present case.
E E
35. In the premises, I am not prepared to grant Mr Wan any
F F
further reduction in sentence.
G G
36. The case of Fong Chi Yam does not assist Mr Wan. In Fong,
H H
although the applicant was charged with and convicted of two charges of
I money laundering, the basis upon which the enhancement of sentence was I
made was prevalence of “telephone deception” (see para 93 of the Chinese
J J
Reasons for Judgment). Here, in Mr Wan’s case, the basis is completely
K different: the enhancement is sought on the basis of prevalence of money K
laundering offence, and the harm caused to the community by recent
L L
occurrences of this offence.
M M
37. The maximum penalty for the offence of money laundering is
N N
14 years’ imprisonment. There are no sentencing guidelines but a deterrent
O sentence is called for. O
P P
38. The amount of money involved is a major consideration:
Q HKSAR v Hsu Yu Yi [2010] 5 HKLRD 545, 551 at para 9(a). Q
R R
S S
T T
U U
V V
-9-
A A
B B
39. In HKSAR v Boma [2012] 2 HKLRD 33, the Court of Appeal
C said a sentencing court should take into account the following non- C
exhaustive list of features when dealing with offences of money
D D
laundering:-
E E
(a) the nature of the predicate offence;
F F
G (b) the state of the offender’s knowledge; G
H H
(c) where the operation involved an international
I dimension, this would be a significant aggravating I
feature;
J J
K (d) the sophistication of the offence, including the degree K
of planning;
L L
M (e) where the offence was committed by or on behalf of an M
organized criminal syndicate would be an aggravating
N N
feature;
O O
(f) whether there was one transaction or many and the
P P
length of time over which the offence was committed;
Q Q
(g) whether the offender continued to launder funds after
R R
he had discovered the nature of the funds were proceeds
S of an offence or a serious offence was involved; S
T T
U U
V V
- 10 -
A A
B B
(h) the role of the offender and the acts performed by him.
C C
40. In Secretary for Justice v Wan Kwok Keung [2012] 1 HKLRD
D D
201, Yeung JA, in giving the judgment of the Court of Appeal, said at para
E 15: E
F F
“In HKSAR v Hsu Yu Yi [2010] 5 HKLRD 545, Cheung JA set
out the amounts of money involved and the sentences passed in
G a number of “money laundering” cases. The sentencing starting G
point is 3 years or so where the “black money” involved is
between $1 million and $2 million; 4 years or so where it is
H between $3 million and $6 million; and could be over 5 years H
where it is above $10 million.”
I I
41. In the present case, the amount laundered was about $4.5
J J
million. The predicate offence appears to be “Fraud”; however, there is
K little evidence that Mr Wan knew about this. The duration of the offence K
was less than one month. Mr Wan’s role was simply to allow others to use
L L
his account. According to mitigation, Mr Wan committed the offence in
M order to set off a gambling debt of $3,200 so that was his remuneration. M
There is a lack of other aggravating features peculiar to the offence.
N N
O 42. With all those factors in mind especially the short duration of O
the offence, I adopt a low starting point of 3 years and 3 months’
P P
imprisonment.
Q Q
43. Because of the aggravating factor of commission of the
R R
offence whilst on bail, I increase the starting point by 3 months to reach
S the final starting point of 3½ years’ imprisonment. S
T T
U U
V V
- 11 -
A A
B B
44. Mr Wan pleaded guilty in good time, earning for himself the
C customary 1/3 sentencing discount. Other than that, I cannot discern any C
other mitigating factors of weight to justify another sentence reduction.
D D
E 45. According to the witness statement of CIP Li Yiu Nam dated E
21 March 2025, although the overall number of money laundering cases
F F
(detected with arrest) and the amount of losses or proceeds laundered went
G down from 776 and HK$10,262.7M 1 in year 2023, to 549 and G
HK$3,971.8M2 in year 2024, the figures in year 2024 are still substantial.
H H
This shows the money laundering offence is still prevalent.
I I
46. CIP has also elaborated in his statement how the anti-money
J J
laundering regime in Hong Kong is hampered by the increasing use of
K stooges for money laundering activities, as follows: K
L L
(a) The increasing number of stooge accounts interferes
M with the normal operation of the banking system, M
having a negative effect on the reputation of Hong
N N
Kong as a well-known international financial hub;
O O
(b) The increasing number of stooge accounts form
P P
multiple layers of “shields” concealing the identity of
Q the masterminds behind, making it difficult, if not Q
impossible, for police to identify the masterminds
R R
behind;
S S
T 1
This figure was mis-read as HK$10.3M at the time of delivery of sentence. T
2
This figure was mis-read as HK$3.97M at the time of delivery of sentence.
U U
V V
- 12 -
A A
B B
C (c) The increasing number of stooge accounts substantially C
facilitates the commission of crimes and in turn leads
D D
to more crimes being committed, as the mastermind
E could easily get away from their criminal liability; E
F F
(d) The increasing number of stooge accounts makes
G money laundering easier, which allows culprits to make G
use of their ill-gotten gains to extend their sphere to
H H
engage in a wider range of illegal activities;
I I
(e) The increasing number of stooge accounts means that
J J
law enforcement agencies have to put in more
K investigation efforts and resources; and K
L L
(f) People with low income or less awareness of the
M consequences of selling their bank accounts are more M
likely to be lured by the culprits to take the risks of
N N
commission of crimes to surrender their accounts for
O monetary reward. O
P P
47. As could be seen from the figures provided by CIP, the use of
Q stooge is increasing in both figures and proportion: there is a rising trend Q
in the use of stooge in deception and money laundering cases combined,
R R
from 31.38% recorded in the year 2020 to 75.10% in the year 2024. In the
S year 2024 alone, there were 3,675 cases involving the use of stooge S
T T
U U
V V
- 13 -
A A
B B
accounts and they accounted for reported monetary losses or proceeds
C laundered to the total amount of HK$4,466.4M3. C
D D
48. I am therefore satisfied that the money laundering offence is
E prevalent; and that the nature and extent of harm, whether direct or indirect, E
caused to the community by recent occurrences of the money laundering
F F
offence is substantial.
G G
49. I will therefore exercise the power under section 27(11) of the
H H
Organized and Serious Crimes Ordinance, Cap 455, to enhance the
I sentence of Mr Wan. The extent of the enhancement will be 25%. I
J J
50. I am satisfied that the final sentence thus arrived at is not
K excessive in the circumstances of the offence and the offender. K
L L
(Mr Wan, please stand)
M M
51. The sentence is 35 months’ imprisonment.
N N
O O
P P
Q ( Isaac Tam ) Q
District Judge
R R
S S
T T
3
This figure was mis-read as HK$4.47M at the time of delivery of sentence.
U U
V V
A A
B B
DCCC 994/2024
C [2025] HKDC 919 C
D IN THE DISTRICT COURT OF THE D
HONG KONG SPECIAL ADMINISTRATIVE REGION
E E
CRIMINAL CASE NO 994 OF 2024
F F
----------------------------
G G
HKSAR
H v H
WAN MINQIANG
I I
----------------------------
J J
Before: His Honour Judge Tam
K K
Date: 29 May 2025
L Present: Mr Wong Kevin C W, counsel-on-fiat, for HKSAR L
Mr Li Shu Pui, Dickson, instructed by Wong & Co, assigned
M M
by the Director of Legal Aid, for the defendant
N N
Offence: Dealing with property known or believed to represent
O
proceeds of an indictable offence（處理已知道或相信為代 O
表從可公訴罪行的得益的財產）
P P
Q ----------------------------------------- Q
REASONS FOR SENTENCE
R R
-----------------------------------------
S S
1. Mr Wan pleaded guilty before me to one charge of Dealing
T T
with property known or believed to represent proceeds of an indictable
U U
V V
-2-
A A
B B
offence, contrary to section 25(1) and (3) of the Organized and Serious
C Crimes Ordinance, Cap 455. C
D D
2. Particulars are that he, between 30 November 2020 and 17
E December 2020, both dates inclusive, in Hong Kong, knowing or having E
reasonable grounds to believe that property, namely a total sum of
F F
$4,546,163.66 Hong Kong currency in an account numbered 405-8-
G 778155-1 held in the name of Mr Wan with Standard Chartered Bank G
(Hong Kong) Limited, in whole or in part directly or indirectly, represented
H H
any person’s proceeds of an indictable offence, dealt with the said property.
I I
Facts admitted by Mr Wan
J J
K 3. A male victim (aged 82) was defrauded a total sum of about K
$7.5 million. His monies were deposited into 9 bank accounts between 28
L L
October 2020 and 15 December 2020.
M M
4. In particular, on 8 December 2020, a sum of $400,000 was
N N
deposited by bank transfer into a bank account numbered 405-8-778155-1
O held in the name of Mr Wan with Standard Chartered Bank (Hong Kong) O
Limited (“the Account”).
P P
Q 5. The Account was opened by Mr Wan on 23 November 2020. Q
He was the sole signatory of the Account. He reported to be an engineer,
R R
earning $18,000 a month.
S S
T T
U U
V V
-3-
A A
B B
6. Between 30 November 2020 and 17 December 2020, a total
C sum of $4,546,163.66 was deposited into the Account; a corresponding C
total sum of $4,546,111 was withdrawn from the Account, leaving a low
D D
balance of $52.66 as at 17 December 2020.
E E
7. During the above period, there were observable patterns of
F F
money laundering in the Account, namely mirror pattern (same or
G aggregate amount being deposited and withdrawn), quick speed of G
dissipation of funds and low remaining balance. The Account was being
H H
used as a temporary fund depository.
I I
8. The Account was closed on 16 March 2021.
J J
K 9. On 30 December 2021, Mr Wan was arrested. K
L L
10. Inland Revenue Department records show that Mr Wan’s
M reported income was incommensurate with the amounts transacted in the M
Account.
N N
O 11. Mr Wan now admits the particulars of the charged offence. O
P P
Criminal record
Q Q
12. Mr Wan has three previous dissimilar convictions, the last two
R R
of which relate to offences committed after the present offence.
S S
T T
U U
V V
-4-
A A
B B
Antecedents
C C
13. Mr Wan is aged 46 (41 at the time of the offence), educated
D D
to F3 level in the Mainland. He was unemployed at the time of arrest. Mr
E Wan is divorced. E
F F
Mitigation
G G
14. Mr Dickson Li of counsel assigned by the Director of Legal
H H
Aid mitigated on behalf of Mr Wan. The following is a summary of the
I mitigation submissions. I
J J
15. Mr Wan was born in the Mainland and came to settle in Hong
K Kong in 2018. He is a divorcee. His son is studying for secondary K
education in the Mainland (with subsidies from his mother’s Mainland
L L
neighbours). Mr Wan’s mother (in her 60s) is living in Hong Kong.
M M
16. Mr Wan lent his subject bank account to other people for their
N N
use in order to set off a gambling debt in the sum of about $3,200.
O O
17. Before arrest, Mr Wan had been working as an odd job man
P P
in construction industry.
Q Q
18. This is the first time Mr Wan got into trouble with money
R R
laundering offences.
S S
T T
U U
V V
-5-
A A
B B
19. In Secretary for Justice v Wan Kwok Keung [2012] 1 HKLRD
C 201, the Court of Appeal in para 15 said that the Court (differently C
constituted) has earlier summed up in HKSAR v Hsu Yu Yi [2010] 5
D D
HKLRD 545 that the sentence for money laundering charges would be like
E (as starting point): E
F F
(a) 3 years or so between $1m and $2m;
G G
(b) 4 years or so between $3m and $6m; and
H H
I (c) Over 5 years where it is above $10m. I
J J
20. In HKSAR v Yam Kong Lai, CACC 458/2006, where the
K amount of money involved was USD500,000, the Court of Appeal allowed K
the appeal against sentence on an offence of money laundering by reducing
L L
sentence (after trial) of 5 years to one of 4 years (see paras 1 and 31).
M M
21. The amount in the present case is about $4.5m which is
N N
similar.
O O
22. Mr Li will not dispute the OSCO Notice nor argue against the
P P
prevalence of the crime in issue.
Q Q
23. In HKSAR v Fong Chi Yam, CACC 411/2017, the applicant
R R
was charged with 2 offences of money laundering originated from a
S background of fraud (see paras 1 & 5). The present case is similar in that S
T T
U U
V V
-6-
A A
B B
$400,000 of the $7.5m fraud proceeds was deposited into Mr Wan’s bank
C account. C
D D
24. There is no evidence to show Mr Wan has taken part in or has
E knowledge of the predicate offence. E
F F
25. In paras 105-106 of Fong Chi Yam, the Court of Appeal held
G that people should not be penalized further in respect of crimes that they G
did not take part in nor had knowledge of.
H H
I 26. The Court of Appeal went on to dismiss the enhancement of I
sentence made by the sentencing judge (see para 106).
J J
K 27. In appropriate circumstances, the court could reduce sentence K
where there has been delay in prosecution: DCCC 996/2022; DCCC 314
L L
& 363/2021 (Consolidated).
M M
28. Mr Wan was arrested in December 2021. After about 6
N N
months, he was released with return of bail money. Mr Wan returned to
O his normal life and resumed work in construction industry. On 5 July 2024, O
when Mr Wan tried to visit the Mainland, he was stopped at the border.
P P
Q 29. The present case is about one bank account for a period of less Q
than one month. It was therefore submitted there might have been some
R R
delay.
S S
T T
U U
V V
-7-
A A
B B
30. It was submitted that Mr Wan should be sentenced in the most
C lenient way. C
D D
31. Mr Li submitted on behalf of Mr Wan a mitigation letter
E written in Chinese by Mr Wan himself. The contents are generally that Mr E
Wan is regretful and apologizes to the Hong Kong Government and the
F F
victim. Mr Wan asks for lenient sentence so that he may return home early
G to attend to her mother and to see his son. G
H H
Sentence
I I
32. There is one aggravating feature in relation to Mr Wan: he
J J
committed the present offence whilst on court bail for WKCC 684/2020.
K K
33. I have seen the Prosecution Timeline produced by the
L L
prosecution. There was a time lapse of about 14 months (from January
M 2022 to March 2023) from initial arrest to the seeking of legal advice. M
There followed another time lapse of about 10 months (from March 2023
N N
to January 2024) when legal advice was pending. Although this case
O involved only one defendant and one bank account, it is linked to at least O
one fraud case in which $7.5 million was lost. There is also no evidence
P P
that Mr Wan made any admissions on arrest.
Q Q
34. Bearing in mind that even normal investigation and normal
R R
rendering of legal advice would take some time, and that both the police
S and the Department of Justice are busy departments, I am not satisfied that S
there was unreasonable delay, which was a prerequisite for relying on it as
T T
U U
V V
-8-
A A
B B
a mitigating factor. Another essential condition before this mitigation can
C be made out is there must be either additional stress or rehabilitation C
attempt by the defendant in the interim period. There is no evidence of
D D
either in the present case.
E E
35. In the premises, I am not prepared to grant Mr Wan any
F F
further reduction in sentence.
G G
36. The case of Fong Chi Yam does not assist Mr Wan. In Fong,
H H
although the applicant was charged with and convicted of two charges of
I money laundering, the basis upon which the enhancement of sentence was I
made was prevalence of “telephone deception” (see para 93 of the Chinese
J J
Reasons for Judgment). Here, in Mr Wan’s case, the basis is completely
K different: the enhancement is sought on the basis of prevalence of money K
laundering offence, and the harm caused to the community by recent
L L
occurrences of this offence.
M M
37. The maximum penalty for the offence of money laundering is
N N
14 years’ imprisonment. There are no sentencing guidelines but a deterrent
O sentence is called for. O
P P
38. The amount of money involved is a major consideration:
Q HKSAR v Hsu Yu Yi [2010] 5 HKLRD 545, 551 at para 9(a). Q
R R
S S
T T
U U
V V
-9-
A A
B B
39. In HKSAR v Boma [2012] 2 HKLRD 33, the Court of Appeal
C said a sentencing court should take into account the following non- C
exhaustive list of features when dealing with offences of money
D D
laundering:-
E E
(a) the nature of the predicate offence;
F F
G (b) the state of the offender’s knowledge; G
H H
(c) where the operation involved an international
I dimension, this would be a significant aggravating I
feature;
J J
K (d) the sophistication of the offence, including the degree K
of planning;
L L
M (e) where the offence was committed by or on behalf of an M
organized criminal syndicate would be an aggravating
N N
feature;
O O
(f) whether there was one transaction or many and the
P P
length of time over which the offence was committed;
Q Q
(g) whether the offender continued to launder funds after
R R
he had discovered the nature of the funds were proceeds
S of an offence or a serious offence was involved; S
T T
U U
V V
- 10 -
A A
B B
(h) the role of the offender and the acts performed by him.
C C
40. In Secretary for Justice v Wan Kwok Keung [2012] 1 HKLRD
D D
201, Yeung JA, in giving the judgment of the Court of Appeal, said at para
E 15: E
F F
“In HKSAR v Hsu Yu Yi [2010] 5 HKLRD 545, Cheung JA set
out the amounts of money involved and the sentences passed in
G a number of “money laundering” cases. The sentencing starting G
point is 3 years or so where the “black money” involved is
between $1 million and $2 million; 4 years or so where it is
H between $3 million and $6 million; and could be over 5 years H
where it is above $10 million.”
I I
41. In the present case, the amount laundered was about $4.5
J J
million. The predicate offence appears to be “Fraud”; however, there is
K little evidence that Mr Wan knew about this. The duration of the offence K
was less than one month. Mr Wan’s role was simply to allow others to use
L L
his account. According to mitigation, Mr Wan committed the offence in
M order to set off a gambling debt of $3,200 so that was his remuneration. M
There is a lack of other aggravating features peculiar to the offence.
N N
O 42. With all those factors in mind especially the short duration of O
the offence, I adopt a low starting point of 3 years and 3 months’
P P
imprisonment.
Q Q
43. Because of the aggravating factor of commission of the
R R
offence whilst on bail, I increase the starting point by 3 months to reach
S the final starting point of 3½ years’ imprisonment. S
T T
U U
V V
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A A
B B
44. Mr Wan pleaded guilty in good time, earning for himself the
C customary 1/3 sentencing discount. Other than that, I cannot discern any C
other mitigating factors of weight to justify another sentence reduction.
D D
E 45. According to the witness statement of CIP Li Yiu Nam dated E
21 March 2025, although the overall number of money laundering cases
F F
(detected with arrest) and the amount of losses or proceeds laundered went
G down from 776 and HK$10,262.7M 1 in year 2023, to 549 and G
HK$3,971.8M2 in year 2024, the figures in year 2024 are still substantial.
H H
This shows the money laundering offence is still prevalent.
I I
46. CIP has also elaborated in his statement how the anti-money
J J
laundering regime in Hong Kong is hampered by the increasing use of
K stooges for money laundering activities, as follows: K
L L
(a) The increasing number of stooge accounts interferes
M with the normal operation of the banking system, M
having a negative effect on the reputation of Hong
N N
Kong as a well-known international financial hub;
O O
(b) The increasing number of stooge accounts form
P P
multiple layers of “shields” concealing the identity of
Q the masterminds behind, making it difficult, if not Q
impossible, for police to identify the masterminds
R R
behind;
S S
T 1
This figure was mis-read as HK$10.3M at the time of delivery of sentence. T
2
This figure was mis-read as HK$3.97M at the time of delivery of sentence.
U U
V V
- 12 -
A A
B B
C (c) The increasing number of stooge accounts substantially C
facilitates the commission of crimes and in turn leads
D D
to more crimes being committed, as the mastermind
E could easily get away from their criminal liability; E
F F
(d) The increasing number of stooge accounts makes
G money laundering easier, which allows culprits to make G
use of their ill-gotten gains to extend their sphere to
H H
engage in a wider range of illegal activities;
I I
(e) The increasing number of stooge accounts means that
J J
law enforcement agencies have to put in more
K investigation efforts and resources; and K
L L
(f) People with low income or less awareness of the
M consequences of selling their bank accounts are more M
likely to be lured by the culprits to take the risks of
N N
commission of crimes to surrender their accounts for
O monetary reward. O
P P
47. As could be seen from the figures provided by CIP, the use of
Q stooge is increasing in both figures and proportion: there is a rising trend Q
in the use of stooge in deception and money laundering cases combined,
R R
from 31.38% recorded in the year 2020 to 75.10% in the year 2024. In the
S year 2024 alone, there were 3,675 cases involving the use of stooge S
T T
U U
V V
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A A
B B
accounts and they accounted for reported monetary losses or proceeds
C laundered to the total amount of HK$4,466.4M3. C
D D
48. I am therefore satisfied that the money laundering offence is
E prevalent; and that the nature and extent of harm, whether direct or indirect, E
caused to the community by recent occurrences of the money laundering
F F
offence is substantial.
G G
49. I will therefore exercise the power under section 27(11) of the
H H
Organized and Serious Crimes Ordinance, Cap 455, to enhance the
I sentence of Mr Wan. The extent of the enhancement will be 25%. I
J J
50. I am satisfied that the final sentence thus arrived at is not
K excessive in the circumstances of the offence and the offender. K
L L
(Mr Wan, please stand)
M M
51. The sentence is 35 months’ imprisonment.
N N
O O
P P
Q ( Isaac Tam ) Q
District Judge
R R
S S
T T
3
This figure was mis-read as HK$4.47M at the time of delivery of sentence.
U U
V V