A A
B B
DCCC 248/2024
C [2025] HKDC 1606 C
D D
IN THE DISTRICT COURT OF THE
E HONG KONG SPECIAL ADMINISTRATIVE REGION E
CRIMINAL CASE NO 248 OF 2024
F F
G ---------------------------- G
HKSAR
H H
v
I CHIU WAI CHUNG I
----------------------------
J J
K Before: His Honour Judge Tam in Court K
Date: 18 September 2025
L L
Present: Mr Lau Wan Cheung Edward, Senior Public Prosecutor, for
M HKSAR M
Mr Yeung Wan Fung, solicitor of Wan Yeung Hau & Co, for
N N
the defendant
O 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
P P
表從可公訴罪行的得益的財產)
Q Q
R --------------------------------------- R
REASONS FOR SENTENCE
S S
---------------------------------------
T T
U U
V V
-2-
A A
B B
1. Mr Chiu pleaded guilty before me to one charge of Dealing
C with property known or believed to represent proceeds of an indictable C
offence, contrary to section 25(1) and (3) of the Organized and Serious
D D
Crimes Ordinance, Cap 455.
E E
2. Particulars are that he, between 18 October 2021 and 30 May
F F
2022, in Hong Kong, together with persons known as “Mr A” and “Mr B”,
G knowing or having reasonable grounds to believe that property, namely a G
chose in action in a total sum of E9,100 Euro currency, $367.028.86 United
H H
States currency and $10,781.19 Hong Kong currency in the account
I numbered 4870019361 held under the name of Kingko Management I
Limited with Dah Sing Bank, Limited, in whole or in part directly or
J J
indirectly represented any person’s proceeds of an indictable offence, dealt
K with the said property. K
L L
Facts admitted by Mr Chiu
M M
3. In March 2022, police received a report that an overseas
N N
victim was deceived by investment scam to remit monies to various bank
O accounts including a Dah Sing Bank, Limited (“DSB”), account no O
4870019361 (“DSB Account”).
P P
Q 4. The DSB Account was held under the name of a Hong Kong Q
company called Kingko Management Limited (“Kingko”).
R R
S 5. Kingko was incorporated in Hong Kong on 21 June 2021. On S
14 July 2021, the DSB Account was opened.
T T
U U
V V
-3-
A A
B B
6. On 1 September 2021, Mr Chiu became Kingko’s sole
C director and shareholder. On 18 October 2021, he, as Kingko’s director, C
became DSB Account’s sole signatory.
D D
E 7. The DSB Account contained a EUR account, a USD account, E
and a HKD account.
F F
G 8. On 7 March 2022, a sum of Euro 9,100 was deposited from a G
source outside Hong Kong into the EUR account and was transferred to the
H H
USD account on the same day in the sum of USD 9,818.70. No other
I transactions were recorded in the EUR account. I
J J
9. For the USD account, it was dormant between 18 October
K 2021 and 17 February 2022. However, between 18 February 2022 and 30 K
May 2022:
L L
M (a) There were a total of 11 deposits totaling M
USD376,847.57 (including the aforesaid intra-account
N N
transfer from the EUR account); around 86% of such
O deposits originated from outside Hong Kong; O
P P
(b) During the same period, all the monies in the USD
Q account were withdrawn in a total of 11 transactions Q
(including two intra-account transfers to the HKD
R R
account in the respective sums of HKD 1,561.90 and
S HKD 2,779.61); over 99% of the deposits were S
withdrawn either on the same day or shortly thereafter;
T T
U U
V V
-4-
A A
B B
(c) Excluding the aforesaid intra-account transfer from the
C EUR account and interest (USD 0.01), the total deposits C
received during the period were USD 367,028.86; and
D D
E (d) On the day when the DSB Account was closed ie 30 E
May 2022, there was originally a balance of
F F
USD354.61; by Mr Chiu’s instructions, this remaining
G sum was transferred to the HKD account in the sum of G
HKD 2,779.61 on the same day.
H H
I 10. For the HKD account, between 18 October 2021 and 30 May I
2022:
J J
K (a) There were a total of 9 deposits totaling HKD K
15,122.72 (including the aforesaid two intra-account
L L
transfers from the USD account); around 56% of the
M deposits (HKD 8,560.80); were deposited on the day M
when the DSB Account was closed (30 May 2022);
N N
O (b) During the same period, all the monies in the HKD O
account were withdrawn in a total of 5 transactions;
P P
immediately before the DSB Account was closed, there
Q was a remaining balance of HKD 14,067.72, which Q
were all withdrawn by Mr Chiu in cash before account
R R
closure; and
S S
(c) Excluding the aforesaid two intra-account transfers
T T
from the USD account and interest (HKD 0.02), the
U U
V V
-5-
A A
B B
total deposits received during the period were HKD
C 10,781.19. C
D D
11. There were observable patterns of money laundering in the
E DSB Account, namely mirror pattern, quick speed of dissipation of funds E
and low remaining balance. The DSB Account was being used as a
F F
temporary fund depository.
G G
12. On 21 February 2023, the police arrested Mr Chiu. During a
H H
cautioned VRI, Mr Chiu stated:
I I
(a) He received education up to university level; he was
J J
unemployed between 2020 and January 2023; he lived
K in public housing with his family; K
L L
(b) In 2021, he was in financial difficulties; he received a
M cold call which referred him to a man known as Mr A; M
Mr A told him to use his name to incorporate a
N N
company and open a bank account for Mr A’s trading
O business; Mr Chiu could receive 1% of every O
transaction as service fees; he never met Mr A and they
P P
mainly communicated via WeChat;
Q Q
(c) Thereafter, following Mr A’s instructions, he went to
R R
an office in Tuen Mun to sign some documents for the
S transfer of Kingko’s ownership to him; a few days later, S
he went to a DSB branch for the transfer of the DSB
T T
Account to him;
U U
V V
-6-
A A
B B
C (d) Thereafter, Mr A asked him to meet a man known as C
Mr B in Yuen Long MTR station; when they met, he
D D
gave Mr B all relevant documents including Kingko’s
E company chop; E
F F
(e) He received email notifications for the transactions in
G the DSB Account but he did not pay attention to them; G
H H
(f) He had no idea as to the monies transferred to the DSB
I Account; he never operated the account; and I
J J
(g) Later, DSB staff informed him that the DSB Account
K was cancelled due to some internal reasons; there was K
around HKD 10,000 plus left in the account; the bank
L L
staff returned the remaining balance to Mr Chiu; as he
M could no longer contact Mr A, he spent all the money M
himself.
N N
O 13. Kingko has not filed any tax return. O
P P
14. The total amount in the charge in HKD terms is about
Q HKD2.95 million. Q
R R
Criminal record
S S
15. Mr Chiu has a clear record.
T T
U U
V V
-7-
A A
B B
Antecedents
C C
16. Mr Chiu is aged 35 (31-32 at the time of the offence),
D D
educated to University level, unemployed at the time of arrest. He lives
E with his family in public housing in Tuen Mun. E
F F
Mitigation
G G
17. Mr Yeung Wan Fung of solicitor mitigated on behalf of Mr
H H
Chiu. The following is a summary of the mitigation submissions.
I I
18. Mr Chiu was born in Guangzhou and moved to Hong Kong at
J J
the age of 2. He grew up in a single-parent family and lives with his mother
K and younger brother. K
L L
19. In 2014, Mr Chiu graduated with a BA in Marketing and
M Public Relations from SPEED of HK Polytechnic University. After M
graduation, he worked in various capacities but in August 2020, he ceased
N N
to be employed and devoted himself to financial investment and trading for
O several months but suffered losses and incurred debts. He started job O
hunting again in around May 2021.
P P
Q 20. After the events of the present case, he secured new Q
employment in July 2023 as an Export Sales Executive at Kang Shi Fu also
R R
known as Master Kong, earning an average monthly salary of $28,000. He
S recently resigned in anticipation of imprisonment for the present case. S
T T
U U
V V
-8-
A A
B B
21. The public housing unit in which Mr Chiu resides with his
C mother (63) and younger brother (unemployed) is now under the ownership C
of his mother through a special government scheme.
D D
E 22. Ever since Mr Chiu’s mother had a work-related accident in E
or around 2013, she has had some stress-related medical issue (medical
F F
records submitted) which limited her work capacity to occasional part-time
G employment only. Mr Chiu therefore bears primary responsibility towards G
household expense.
H H
I 23. The events leading to Mr Chiu’s commission of the offence I
are narrated in his VRI a summary of which is contained in the Amended
J J
Summary of Facts.
K K
24. Despite the initial promise of a 1% service fee, Mr A severed
L L
contact and Mr Chiu received no remuneration at all. Mr Chiu accepts
M responsibility for his naivety and failure to monitor the bank account. Mr M
Chiu cooperated fully at an early stage. He pleaded guilty at the earliest
N N
possible opportunity.
O O
25. Persons convicted of money laundering, even for first
P P
offenders, are generally sentenced to immediate prison terms. There is no
Q sentencing tariff. Q
R R
26. It has been held that the sentence should mainly reflect the
S amount of money laundered. In HKSAR v Hsu Yu Yi [2010] 5 HKLRD S
545, Cheung JA set out the amounts of money involved and the sentences
T T
passed in a number of money laundering cases: the starting point was 3
U U
V V
-9-
A A
B B
years or so where the ‘black money’ was between $1 million and $2 million;
C 4 years or so where it was between $3 million and $6 million; and could be C
over 5 years where it was above $10 million.
D D
E 27. In Boma Amaso [2012] 1 HKC 504, Stock VP (as Stock NPJ E
then was) explained that given the highly variable circumstances in which
F F
the offence of money laundering might be committed, it was difficult and
G undesirable to offer a sentencing tariff. His Lordship explained that G
deterrence was paramount given the encouragement. Other than the
H H
amount of money, his Lordship listed other significant considerations that
I could be taken into account, including (but not exhaustive):- I
J J
(a) The nature of the predicate offence;
K K
(b) The state of the offender’s knowledge;
L L
M (c) Whether the operation involved an international M
dimension;
N N
O (d) Sophistication of the offence, including the degree of O
planning;
P P
Q (e) Whether the offence was committed by or on behalf of Q
an organized criminal syndicate;
R R
S (f) Whether there was one transaction or many in the S
length of time over which the offence was committed;
T T
U U
V V
- 10 -
A A
B B
(g) Whether the offender continued to launder funds after
C he had discovered the nature of the funds were proceeds C
of an offence or a serious offence was involved; and
D D
E (h) The role of the offender and the acts performed by him. E
F F
28. In HKSAR v Leung Wai Wah CACC 201/2011, the Court
G confirmed where there are circumstances that justify taking a lenient G
approach, the means by which this should be achieved is by reducing the
H H
starting point that would otherwise be appropriate for the gravity of the
I offending. I
J J
29. Mr Yeung referred to a District Court sentencing case HKSAR
K v Lau Hiu Tung (transliteration) DCCC 1061/2024 [2025] HKDC 1442 for K
reference only.
L L
M 30. Mr Chiu’s culpability lies in his failure to exercise proper M
judgement and in his having turned a blind eye to the suspicious features
N N
of the arrangement. When asked, Mr Yeung concedes that Mr Chiu had
O reasonable grounds to believe the relevant property represented proceeds O
of an indictable offence.
P P
Q 31. Mr Yeung submitted that Mr Chiu had no role in carrying out Q
or facilitating any of the transactions beyond allowing his bank account to
R R
be used.
S S
32. Mr Chiu has no objection to the prosecution’s furnishing of
T T
information and request for enhanced sentencing under OSCO, Cap 455.
U U
V V
- 11 -
A A
B B
C 33. Mr Yueng asked the court to be lenient to Mr Chiu. C
D D
34. Mr Yeung submitted on behalf of Mr Chiu two mitigation
E letters written in Chinese respectively by Mr Chiu himself and his younger E
brother. Mr Yeung also submitted a mitigation letter written in English by
F F
Vice President, Head of Export of Master Kong, and with it a name card
G copy and a Certificate of Employment issued by Master Kong in favour of G
Mr Chiu, all in English. The contents are generally that Mr Chiu
H H
apologizes to the court and admits his negligence and mistake; that during
I the period prior to the hearing, he did not give himself up and worked hard I
at Master Kong; that Mr Chiu promises never to re-offend; that Mr Chiu is
J J
the main breadwinner; that Mr Chiu while working at Master Kong has
K demonstrated himself to be an honest, responsible, upright and kind K
individual; that his efficiency, passion and high capability have made him
L L
an invaluable asset to Master Kong; that Master Kong is willing to re-
M employ Mr Chiu upon his release from prison. The letter writers all asked M
for a lenient sentence for Mr Chiu.
N N
O Sentence O
P P
35. Money laundering is a serious offence and helps feed the
Q happening of the predicate offence(s). As such, deterrent sentences are Q
rightly called for.
R R
S 36. In this case, I note the following significant features. The S
money laundered came to a total of just under HK$3 million. The offence
T T
spanned about 7 ½ months. During the period, there were 20 or so deposits
U U
V V
- 12 -
A A
B B
and a slightly smaller number of withdrawals. There was an international
C dimension. The predicate offence appears to be fraud but there is little C
evidence to show that Mr Chiu knew about this. Although 1% of
D D
transaction amount was promised, there is no evidence that it was ever paid
E to Mr Chiu. E
F F
37. Before I decide on the starting point of sentence, I have taken
G into account all the positive things that have been said about Mr Chiu. All G
things considered, I will adopt a starting point of 2 years 9 months’
H H
imprisonment.
I I
38. Mr Chiu pleaded guilty in good time earning for himself the
J J
customary 1/3 sentencing discount. There are no other mitigating factors
K of weight to warrant another sentence reduction. K
L L
39. Prosecution furnished under section 27(2) of OSCO, Cap 455,
M a witness statement of CIP Li Yiu Nam dated 25 August 2025 without M
objection from defence, with a view to showing the prevalence of money
N N
laundering offence, and the nature and extent of any harm, whether direct
O or indirect, caused to the community by recent occurrences of money O
laundering offence.
P P
Q 40. I have received this witness statement. Q
R R
41. In Table A on page 5 of the statement, it can be seen the
S number of money laundering stooges arrested kept increasing to a peak in S
year 2024 with a figure of 7,883. For the first 7 months of 2025, the
T T
corresponding figure is 3,147. Projected for the whole of 2025, the figure
U U
V V
- 13 -
A A
B B
would be 5,394. That represents a drop from the year 2024. Nonetheless,
C it is still a significant figure. C
D D
42. I am satisfied that the use of money laundering stooges is still
E prevalent and by implication the offence of money laundering is still E
prevalent.
F F
G 43. In Table B on pages 6 and 7 of the statement, it can be seen G
that the amount of losses reported by victims of (local) deception cases
H H
with money laundering element rose from $552M in 2020 to $2,143M in
I 2024 and is projected to reach $2,535M by the end of 2025. I
J J
44. Also from Table B, it can be seen that although it may
K represent a 75% drop from the corresponding figure in 2024, the projected K
figure for the whole of year 2025 of total amount of reported monetary
L L
losses (both local and overseas victims) and laundered proceeds where
M there was use of stooge accounts still came to $1,122M (projected number M
of cases being 984).
N N
O 45. The harm caused to the community is not restricted to the O
amount of losses suffered by local deception victims, but also by the
P P
increasing use of stooge accounts in the following ways as described in
Q para 18 on pages 5 and 6 of the statement:- Q
R R
(a) It interferes with the normal operation of the banking
S system, having a negative effect on the reputation of S
Hong Kong as a well-known international financial hub;
T T
U U
V V
- 14 -
A A
B B
(b) It forms multiple layers of “shields” concealing the
C identity of the masterminds behind, making it difficult, C
if not impossible, for police to identify the masterminds
D D
behind;
E E
(c) It substantially facilitates the commission of crimes and
F F
in turns leads to more crimes being committed, as the
G mastermind could easily get away from their criminal G
liability;
H H
I (d) It makes money laundering easier, which allows I
culprits to make use of their ill-gotten gains to extend
J J
their sphere to engage in a wider range of illegal
K activities; K
L L
(e) It means that law enforcement agencies have to put in
M more investigation efforts and resources; and M
N N
(f) People with low income or less awareness of the
O consequences of selling their bank accounts are more O
likely to be lured by the culprits to take the risks of
P P
commission of crimes to surrender their accounts for
Q monetary reward. Q
R R
46. I am satisfied that the harm caused to the community by recent
S occurrences of money laundering offence is still substantial. S
T T
U U
V V
- 15 -
A A
B B
47. Accordingly, I have come to the view that I am able to
C exercise the power under section 27(11) of OSCO, Cap 455, to enhance the C
sentence of Mr Chiu. Given the trend of the statistics, I have determined
D D
that an enhancement of 20% is sufficient in all the circumstances.
E E
48. I will discard any decimal places in the calculation of the
F F
prison term in terms of months.
G G
(Mr Chiu, please stand)
H H
I 49. The sentence is 26 months’ imprisonment. I
J J
K K
( Isaac Tam )
L District Judge L
M M
N N
O O
P P
Q Q
R R
S S
T T
U U
V V
A A
B B
DCCC 248/2024
C [2025] HKDC 1606 C
D D
IN THE DISTRICT COURT OF THE
E HONG KONG SPECIAL ADMINISTRATIVE REGION E
CRIMINAL CASE NO 248 OF 2024
F F
G ---------------------------- G
HKSAR
H H
v
I CHIU WAI CHUNG I
----------------------------
J J
K Before: His Honour Judge Tam in Court K
Date: 18 September 2025
L L
Present: Mr Lau Wan Cheung Edward, Senior Public Prosecutor, for
M HKSAR M
Mr Yeung Wan Fung, solicitor of Wan Yeung Hau & Co, for
N N
the defendant
O 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
P P
表從可公訴罪行的得益的財產)
Q Q
R --------------------------------------- R
REASONS FOR SENTENCE
S S
---------------------------------------
T T
U U
V V
-2-
A A
B B
1. Mr Chiu pleaded guilty before me to one charge of Dealing
C with property known or believed to represent proceeds of an indictable C
offence, contrary to section 25(1) and (3) of the Organized and Serious
D D
Crimes Ordinance, Cap 455.
E E
2. Particulars are that he, between 18 October 2021 and 30 May
F F
2022, in Hong Kong, together with persons known as “Mr A” and “Mr B”,
G knowing or having reasonable grounds to believe that property, namely a G
chose in action in a total sum of E9,100 Euro currency, $367.028.86 United
H H
States currency and $10,781.19 Hong Kong currency in the account
I numbered 4870019361 held under the name of Kingko Management I
Limited with Dah Sing Bank, Limited, in whole or in part directly or
J J
indirectly represented any person’s proceeds of an indictable offence, dealt
K with the said property. K
L L
Facts admitted by Mr Chiu
M M
3. In March 2022, police received a report that an overseas
N N
victim was deceived by investment scam to remit monies to various bank
O accounts including a Dah Sing Bank, Limited (“DSB”), account no O
4870019361 (“DSB Account”).
P P
Q 4. The DSB Account was held under the name of a Hong Kong Q
company called Kingko Management Limited (“Kingko”).
R R
S 5. Kingko was incorporated in Hong Kong on 21 June 2021. On S
14 July 2021, the DSB Account was opened.
T T
U U
V V
-3-
A A
B B
6. On 1 September 2021, Mr Chiu became Kingko’s sole
C director and shareholder. On 18 October 2021, he, as Kingko’s director, C
became DSB Account’s sole signatory.
D D
E 7. The DSB Account contained a EUR account, a USD account, E
and a HKD account.
F F
G 8. On 7 March 2022, a sum of Euro 9,100 was deposited from a G
source outside Hong Kong into the EUR account and was transferred to the
H H
USD account on the same day in the sum of USD 9,818.70. No other
I transactions were recorded in the EUR account. I
J J
9. For the USD account, it was dormant between 18 October
K 2021 and 17 February 2022. However, between 18 February 2022 and 30 K
May 2022:
L L
M (a) There were a total of 11 deposits totaling M
USD376,847.57 (including the aforesaid intra-account
N N
transfer from the EUR account); around 86% of such
O deposits originated from outside Hong Kong; O
P P
(b) During the same period, all the monies in the USD
Q account were withdrawn in a total of 11 transactions Q
(including two intra-account transfers to the HKD
R R
account in the respective sums of HKD 1,561.90 and
S HKD 2,779.61); over 99% of the deposits were S
withdrawn either on the same day or shortly thereafter;
T T
U U
V V
-4-
A A
B B
(c) Excluding the aforesaid intra-account transfer from the
C EUR account and interest (USD 0.01), the total deposits C
received during the period were USD 367,028.86; and
D D
E (d) On the day when the DSB Account was closed ie 30 E
May 2022, there was originally a balance of
F F
USD354.61; by Mr Chiu’s instructions, this remaining
G sum was transferred to the HKD account in the sum of G
HKD 2,779.61 on the same day.
H H
I 10. For the HKD account, between 18 October 2021 and 30 May I
2022:
J J
K (a) There were a total of 9 deposits totaling HKD K
15,122.72 (including the aforesaid two intra-account
L L
transfers from the USD account); around 56% of the
M deposits (HKD 8,560.80); were deposited on the day M
when the DSB Account was closed (30 May 2022);
N N
O (b) During the same period, all the monies in the HKD O
account were withdrawn in a total of 5 transactions;
P P
immediately before the DSB Account was closed, there
Q was a remaining balance of HKD 14,067.72, which Q
were all withdrawn by Mr Chiu in cash before account
R R
closure; and
S S
(c) Excluding the aforesaid two intra-account transfers
T T
from the USD account and interest (HKD 0.02), the
U U
V V
-5-
A A
B B
total deposits received during the period were HKD
C 10,781.19. C
D D
11. There were observable patterns of money laundering in the
E DSB Account, namely mirror pattern, quick speed of dissipation of funds E
and low remaining balance. The DSB Account was being used as a
F F
temporary fund depository.
G G
12. On 21 February 2023, the police arrested Mr Chiu. During a
H H
cautioned VRI, Mr Chiu stated:
I I
(a) He received education up to university level; he was
J J
unemployed between 2020 and January 2023; he lived
K in public housing with his family; K
L L
(b) In 2021, he was in financial difficulties; he received a
M cold call which referred him to a man known as Mr A; M
Mr A told him to use his name to incorporate a
N N
company and open a bank account for Mr A’s trading
O business; Mr Chiu could receive 1% of every O
transaction as service fees; he never met Mr A and they
P P
mainly communicated via WeChat;
Q Q
(c) Thereafter, following Mr A’s instructions, he went to
R R
an office in Tuen Mun to sign some documents for the
S transfer of Kingko’s ownership to him; a few days later, S
he went to a DSB branch for the transfer of the DSB
T T
Account to him;
U U
V V
-6-
A A
B B
C (d) Thereafter, Mr A asked him to meet a man known as C
Mr B in Yuen Long MTR station; when they met, he
D D
gave Mr B all relevant documents including Kingko’s
E company chop; E
F F
(e) He received email notifications for the transactions in
G the DSB Account but he did not pay attention to them; G
H H
(f) He had no idea as to the monies transferred to the DSB
I Account; he never operated the account; and I
J J
(g) Later, DSB staff informed him that the DSB Account
K was cancelled due to some internal reasons; there was K
around HKD 10,000 plus left in the account; the bank
L L
staff returned the remaining balance to Mr Chiu; as he
M could no longer contact Mr A, he spent all the money M
himself.
N N
O 13. Kingko has not filed any tax return. O
P P
14. The total amount in the charge in HKD terms is about
Q HKD2.95 million. Q
R R
Criminal record
S S
15. Mr Chiu has a clear record.
T T
U U
V V
-7-
A A
B B
Antecedents
C C
16. Mr Chiu is aged 35 (31-32 at the time of the offence),
D D
educated to University level, unemployed at the time of arrest. He lives
E with his family in public housing in Tuen Mun. E
F F
Mitigation
G G
17. Mr Yeung Wan Fung of solicitor mitigated on behalf of Mr
H H
Chiu. The following is a summary of the mitigation submissions.
I I
18. Mr Chiu was born in Guangzhou and moved to Hong Kong at
J J
the age of 2. He grew up in a single-parent family and lives with his mother
K and younger brother. K
L L
19. In 2014, Mr Chiu graduated with a BA in Marketing and
M Public Relations from SPEED of HK Polytechnic University. After M
graduation, he worked in various capacities but in August 2020, he ceased
N N
to be employed and devoted himself to financial investment and trading for
O several months but suffered losses and incurred debts. He started job O
hunting again in around May 2021.
P P
Q 20. After the events of the present case, he secured new Q
employment in July 2023 as an Export Sales Executive at Kang Shi Fu also
R R
known as Master Kong, earning an average monthly salary of $28,000. He
S recently resigned in anticipation of imprisonment for the present case. S
T T
U U
V V
-8-
A A
B B
21. The public housing unit in which Mr Chiu resides with his
C mother (63) and younger brother (unemployed) is now under the ownership C
of his mother through a special government scheme.
D D
E 22. Ever since Mr Chiu’s mother had a work-related accident in E
or around 2013, she has had some stress-related medical issue (medical
F F
records submitted) which limited her work capacity to occasional part-time
G employment only. Mr Chiu therefore bears primary responsibility towards G
household expense.
H H
I 23. The events leading to Mr Chiu’s commission of the offence I
are narrated in his VRI a summary of which is contained in the Amended
J J
Summary of Facts.
K K
24. Despite the initial promise of a 1% service fee, Mr A severed
L L
contact and Mr Chiu received no remuneration at all. Mr Chiu accepts
M responsibility for his naivety and failure to monitor the bank account. Mr M
Chiu cooperated fully at an early stage. He pleaded guilty at the earliest
N N
possible opportunity.
O O
25. Persons convicted of money laundering, even for first
P P
offenders, are generally sentenced to immediate prison terms. There is no
Q sentencing tariff. Q
R R
26. It has been held that the sentence should mainly reflect the
S amount of money laundered. In HKSAR v Hsu Yu Yi [2010] 5 HKLRD S
545, Cheung JA set out the amounts of money involved and the sentences
T T
passed in a number of money laundering cases: the starting point was 3
U U
V V
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A A
B B
years or so where the ‘black money’ was between $1 million and $2 million;
C 4 years or so where it was between $3 million and $6 million; and could be C
over 5 years where it was above $10 million.
D D
E 27. In Boma Amaso [2012] 1 HKC 504, Stock VP (as Stock NPJ E
then was) explained that given the highly variable circumstances in which
F F
the offence of money laundering might be committed, it was difficult and
G undesirable to offer a sentencing tariff. His Lordship explained that G
deterrence was paramount given the encouragement. Other than the
H H
amount of money, his Lordship listed other significant considerations that
I could be taken into account, including (but not exhaustive):- I
J J
(a) The nature of the predicate offence;
K K
(b) The state of the offender’s knowledge;
L L
M (c) Whether the operation involved an international M
dimension;
N N
O (d) Sophistication of the offence, including the degree of O
planning;
P P
Q (e) Whether the offence was committed by or on behalf of Q
an organized criminal syndicate;
R R
S (f) Whether there was one transaction or many in the S
length of time over which the offence was committed;
T T
U U
V V
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A A
B B
(g) Whether the offender continued to launder funds after
C he had discovered the nature of the funds were proceeds C
of an offence or a serious offence was involved; and
D D
E (h) The role of the offender and the acts performed by him. E
F F
28. In HKSAR v Leung Wai Wah CACC 201/2011, the Court
G confirmed where there are circumstances that justify taking a lenient G
approach, the means by which this should be achieved is by reducing the
H H
starting point that would otherwise be appropriate for the gravity of the
I offending. I
J J
29. Mr Yeung referred to a District Court sentencing case HKSAR
K v Lau Hiu Tung (transliteration) DCCC 1061/2024 [2025] HKDC 1442 for K
reference only.
L L
M 30. Mr Chiu’s culpability lies in his failure to exercise proper M
judgement and in his having turned a blind eye to the suspicious features
N N
of the arrangement. When asked, Mr Yeung concedes that Mr Chiu had
O reasonable grounds to believe the relevant property represented proceeds O
of an indictable offence.
P P
Q 31. Mr Yeung submitted that Mr Chiu had no role in carrying out Q
or facilitating any of the transactions beyond allowing his bank account to
R R
be used.
S S
32. Mr Chiu has no objection to the prosecution’s furnishing of
T T
information and request for enhanced sentencing under OSCO, Cap 455.
U U
V V
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A A
B B
C 33. Mr Yueng asked the court to be lenient to Mr Chiu. C
D D
34. Mr Yeung submitted on behalf of Mr Chiu two mitigation
E letters written in Chinese respectively by Mr Chiu himself and his younger E
brother. Mr Yeung also submitted a mitigation letter written in English by
F F
Vice President, Head of Export of Master Kong, and with it a name card
G copy and a Certificate of Employment issued by Master Kong in favour of G
Mr Chiu, all in English. The contents are generally that Mr Chiu
H H
apologizes to the court and admits his negligence and mistake; that during
I the period prior to the hearing, he did not give himself up and worked hard I
at Master Kong; that Mr Chiu promises never to re-offend; that Mr Chiu is
J J
the main breadwinner; that Mr Chiu while working at Master Kong has
K demonstrated himself to be an honest, responsible, upright and kind K
individual; that his efficiency, passion and high capability have made him
L L
an invaluable asset to Master Kong; that Master Kong is willing to re-
M employ Mr Chiu upon his release from prison. The letter writers all asked M
for a lenient sentence for Mr Chiu.
N N
O Sentence O
P P
35. Money laundering is a serious offence and helps feed the
Q happening of the predicate offence(s). As such, deterrent sentences are Q
rightly called for.
R R
S 36. In this case, I note the following significant features. The S
money laundered came to a total of just under HK$3 million. The offence
T T
spanned about 7 ½ months. During the period, there were 20 or so deposits
U U
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A A
B B
and a slightly smaller number of withdrawals. There was an international
C dimension. The predicate offence appears to be fraud but there is little C
evidence to show that Mr Chiu knew about this. Although 1% of
D D
transaction amount was promised, there is no evidence that it was ever paid
E to Mr Chiu. E
F F
37. Before I decide on the starting point of sentence, I have taken
G into account all the positive things that have been said about Mr Chiu. All G
things considered, I will adopt a starting point of 2 years 9 months’
H H
imprisonment.
I I
38. Mr Chiu pleaded guilty in good time earning for himself the
J J
customary 1/3 sentencing discount. There are no other mitigating factors
K of weight to warrant another sentence reduction. K
L L
39. Prosecution furnished under section 27(2) of OSCO, Cap 455,
M a witness statement of CIP Li Yiu Nam dated 25 August 2025 without M
objection from defence, with a view to showing the prevalence of money
N N
laundering offence, and the nature and extent of any harm, whether direct
O or indirect, caused to the community by recent occurrences of money O
laundering offence.
P P
Q 40. I have received this witness statement. Q
R R
41. In Table A on page 5 of the statement, it can be seen the
S number of money laundering stooges arrested kept increasing to a peak in S
year 2024 with a figure of 7,883. For the first 7 months of 2025, the
T T
corresponding figure is 3,147. Projected for the whole of 2025, the figure
U U
V V
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A A
B B
would be 5,394. That represents a drop from the year 2024. Nonetheless,
C it is still a significant figure. C
D D
42. I am satisfied that the use of money laundering stooges is still
E prevalent and by implication the offence of money laundering is still E
prevalent.
F F
G 43. In Table B on pages 6 and 7 of the statement, it can be seen G
that the amount of losses reported by victims of (local) deception cases
H H
with money laundering element rose from $552M in 2020 to $2,143M in
I 2024 and is projected to reach $2,535M by the end of 2025. I
J J
44. Also from Table B, it can be seen that although it may
K represent a 75% drop from the corresponding figure in 2024, the projected K
figure for the whole of year 2025 of total amount of reported monetary
L L
losses (both local and overseas victims) and laundered proceeds where
M there was use of stooge accounts still came to $1,122M (projected number M
of cases being 984).
N N
O 45. The harm caused to the community is not restricted to the O
amount of losses suffered by local deception victims, but also by the
P P
increasing use of stooge accounts in the following ways as described in
Q para 18 on pages 5 and 6 of the statement:- Q
R R
(a) It interferes with the normal operation of the banking
S system, having a negative effect on the reputation of S
Hong Kong as a well-known international financial hub;
T T
U U
V V
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A A
B B
(b) It forms multiple layers of “shields” concealing the
C identity of the masterminds behind, making it difficult, C
if not impossible, for police to identify the masterminds
D D
behind;
E E
(c) It substantially facilitates the commission of crimes and
F F
in turns leads to more crimes being committed, as the
G mastermind could easily get away from their criminal G
liability;
H H
I (d) It makes money laundering easier, which allows I
culprits to make use of their ill-gotten gains to extend
J J
their sphere to engage in a wider range of illegal
K activities; K
L L
(e) It means that law enforcement agencies have to put in
M more investigation efforts and resources; and M
N N
(f) People with low income or less awareness of the
O consequences of selling their bank accounts are more O
likely to be lured by the culprits to take the risks of
P P
commission of crimes to surrender their accounts for
Q monetary reward. Q
R R
46. I am satisfied that the harm caused to the community by recent
S occurrences of money laundering offence is still substantial. S
T T
U U
V V
- 15 -
A A
B B
47. Accordingly, I have come to the view that I am able to
C exercise the power under section 27(11) of OSCO, Cap 455, to enhance the C
sentence of Mr Chiu. Given the trend of the statistics, I have determined
D D
that an enhancement of 20% is sufficient in all the circumstances.
E E
48. I will discard any decimal places in the calculation of the
F F
prison term in terms of months.
G G
(Mr Chiu, please stand)
H H
I 49. The sentence is 26 months’ imprisonment. I
J J
K K
( Isaac Tam )
L District Judge L
M M
N N
O O
P P
Q Q
R R
S S
T T
U U
V V