A A
B B
DCCC 923/2024
C C
[2025] HKDC 1670
D D
IN THE DISTRICT COURT OF THE
E E
HONG KONG SPECIAL ADMINISTRATIVE REGION
F CRIMINAL CASE NO 923 OF 2024 F
G G
--------------------------
H HKSAR H
v
I I
TAO Ching-chung
J --------------------------- J
K K
Before: His Honour Judge W.K. Kwok
L Date: 29 September 2025 L
Present: Mr Jonathan Chu Ka Shing, Senior Public Prosecutor, for
M M
HKSAR
N Mr Alan Ng Hoi Lun, instructed by Messrs Lo, Wong & N
Tsui, assigned by the Director of Legal Aid, for the
O O
defendant
P Offence: Dealing with property known or believed to represent P
proceeds of an indictable offence (處理已知道或相信為代
Q Q
表從可公訴罪行的得益的財產)
R R
S
--------------------------------------- S
REASONS FOR SENTENCE
T T
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1. The defendant pleads guilty to one charge of dealing with
C property known or believed to represent proceeds of an indictable offence, C
contrary to section 25(1) and (3) of the Organized and Serious Crimes
D D
Ordinance (“OSCO”), Chapter 455. He admits the Summary of Facts
E presented by the prosecution. Upon his plea and the facts he has admitted, E
he is convicted as charged.
F F
G Facts G
2. On 24 March 2022, the defendant opened a bank account
H H
(“the Account”) with the Bank of China (Hong Kong) Limited (“the
1
I Bank”). The defendant was the sole signatory of the Account. I
J J
3. When the defendant set up the Account, he reported to the
K Bank that he opened it for savings or salary purpose. In the opening K
mandate, he stated that he worked as a supervisor in an engineering
L L
company with a monthly income of HK$10,000 to HK$25,000.
M M
4. During the period from 25 March 2022 and 30 March 2022,
N N
53 deposits were made into the Account, totaling HK$2,529,062.40.
O O
5. One of the deposits was made by Mr. Chan Tim-loi. Mr.
P Chan transferred HK$254,005 into the Account on 30 March 2022. At P
that time, Mr. Chan was a retired person. He fell victim to an online
Q Q
romance cum investment scam through a dating app “Speedy Loving”.
R Mr. Chan was deceived to invest in the US stock market and R
cryptocurrency with a promise of lucrative return. He had remitted a total
S S
of HK$696,045 into 8 local bank accounts (including the Account)
T T
1
Full particulars of the A ccount ha ve been set out in the Particulars of the Charge.
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provided by the unknown swindler between 9 March 2022 and 31 March
C 2022. Later when he could not withdraw his money, he realized that he C
had been deceived. He made a report to the police.
D D
6. Another deposit into the Account was made by Ms Chan
E E
Tsz-yuk. Ms Chan received telephone calls from unknown swindlers
F who alleged that Ms Chan had been involved in money laundering F
activities in the Mainland. Pursuant to the instructions of the swindlers,
G G
Ms Chan transferred a total of HK$400,000 into 3 local bank accounts as
H directed by the swindlers between 21 March 2022 and 11 April 2022, H
including a transfer of HK$100,000 into the Account on 29 March 2022.
I I
Ms Chan later realized that this was a scam and made a report to the
J J
police.
K K
7. During the same period from 25 March 2022 and 30 March
L 2022, 83 withdrawals were made from the Account, totaling L
HK$2,528,926.69.
M M
8. Police investigation revealed that the Account was mainly
N N
active from 28 March 2022 to 30 March 2022 with numerous inbound
O and outbound transactions each day. In general, the amount of deposits O
ranged from a few thousand dollars to HK$400,000. The incoming funds
P P
were quickly transferred out of the Account (by faster payment system)
Q either at similar amount or with smaller amount in multiple transactions Q
on the same day. Features of test payments and numerous counterpart
R R
were detected. The Account maintained a low account balance each day.
S S
T T
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9. The defendant was arrested on 16 October 2022. He
C remained silent under caution at the time of arrest and during subsequent C
video-recorded interview.
D D
10. When the defendant pleads guilty to the Charge, he also
E E
admits that: -
F (a) The amount and velocity of the transactions in the F
Account were not commensurate with the defendant’s
G G
background and reported income.
H (b) The account was used as a temporary repository of funds, H
with confirmed proceeds of crime originated from
I I
different scams.
J J
(c) At the relevant times as particularized in the Charge, the
K
defendant, knowing or having reasonable grounds to K
believe that the total sum of HK$2,529,062.40 deposited
L L
into the Account, in whole or in part, directly or
M
indirectly represented any person’s proceeds of an M
indictable offence, dealt with these sums of money.
N N
O
Criminal record of the defendant O
11. The defendant has a clear criminal record.
P P
Q
Personal and family background Q
12. The defendant was born on 7 April 1997 in Hong Kong. He
R R
is 28 years old now. He is single. His parents have divorced.
S S
13. According to the mitigation letters written by the defendant,
T T
his mother and stepfather, the defendant’s parents separated when the
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defendant was two years old. The defendant then lived with his father
C who soon had another marriage. The defendant was later sent by his C
father and stepmother to live with different relatives for different periods
D D
of time, and he was passed around like a “human ball”. It was only when
E the defendant was studying in Primary Three that his mother managed to E
obtain the custody of the defendant from the Court. The defendant lived
F F
with his mother and stepfather thereafter.
G G
14. The defendant received education in Hong Kong up to Form
H Two. When he was 13 years old, he went to New Zealand where he H
received education from Year 9 to Year 13. He was offered a vacancy by
I I
a university, but due to financial difficulties, he was unable to continue
J J
with his education there and returned to Hong Kong in 2016.
K K
15. At the time of his arrest, the defendant was working as a
L clerk in a finance company with a fluctuating monthly income between L
HK$16,000 and HK$20,000. He is now working as a warehouse worker.
M M
16. The defendant’s mother is now 57 years old. In 2024, the
N N
defendant and his friend rented a flat in Tuen Mun and lived there, but he
O has just now moved back to live with his mother in Yuen Long. O
P P
Mitigation
Q
17. According to Mr. Alan Ng, learned counsel for the defendant, Q
the defendant came to know a person via a friend in 2021, and they
R R
became friends. That person shared defendant all his living experience
S including his unsatisfactory job and sour family relationship. This person S
then asked the defendant to lend him a bank account because he did not
T T
want his family member to know his financial situation. Out of naivety,
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the defendant complied with the request. Mr. Ng says that the defendant
C did not ask his friend the purpose of having a bank account, but stresses C
that the defendant received no benefit for helping his friend.
D D
E 18. According to Mr. Ng, the defendant cannot contact this E
person, or the friend who introduced this friend to him.
F F
G 19. Mr. Ng submits that there is no evidence that shows or G
implies that the defendant knew anything about the syndicate or the crime
H H
behind the movement of the money in and out of the Account. He
I submits that this is a case where the defendant is guilty of the charge only I
on the limb that he had reasonable grounds to believe (not actual
J J
knowledge) that the property represented any person’s proceeds of an
K indictable offence. Mr. Ng submits that the defendant was only a “cog in K
the machinery” who received no benefit whatsoever.
L L
M
20. Mr. Ng points out that the defendant was 25 years old at the M
time of the offence, and that while he had heard of money laundering
N N
cases in the news at that time, money laundering was something new to
O
him. Mr. Ng submits that the defendant accepts that he should have O
asked this friend more questions before lending his bank account to this
P P
friend, such as why he needed this bank account, as well as when he
Q
would start using and finish using the Account. Mr. Ng submits that any Q
reasonable man in the defendant’s position would have asked this friend
R R
these questions but the defendant had failed to do so. Mr. Ng further
S submits that when the defendant thinks about the matter again, he realizes S
that he did not really know this friend much, and that he in fact did not
T T
entirely trust this friend, but he acceded to his request anyway.
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21. Mr. Ng accepts that the amount of money involved, i.e.
C C
about HK$2.5 million, was a lot of money, but stresses that the money
D laundering activities in question last for 6 days only, i.e. from 25 March D
to 30 March 2022, and that only one bank account was involved.
E E
F 22. Mr. Ng also accepts that a sentence of imprisonment is F
inevitable in light of the judgment of the Court of Appeal in Secretary for
G G
Justice v Siu Yun Yee 2, but asks for a sentence as lenient as possible. He
H stresses that the defendant has a clear record, and that the defendant H
wishes to resume working and looking after his mother as soon as
I I
possible.
J J
3
23. Mr. Ng also refers to HKSAR v Hsu Yu Yi and HKSAR v A
K male known as Boma Amaso4 to assist this Court in sentencing. K
L L
24. Mr. Ng submits mitigation letters written by the defendant,
M
his mother and stepfather. This Court has duly considered all of them. M
N Reasons for sentence N
25. Money laundering is a serious offence. Section 25(3) of the
O O
OSCO provides that the maximum penalty upon conviction on indictment
P is a fine of HK$5 million and imprisonment for 14 years. P
Q 26. Since the facts of money laundering offences vary from case Q
to case, there are no sentencing guidelines, but the sentencing principles
R R
are clear.
S S
2
CAAR6/2016, [2017] 3 HKLRD 678
T 3 T
CACC159/2009, [2010] 5 HKLRD 545
4
CACC335/2010, [2012] 2 HKLRD 33
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A A
B B
27. In HKSAR v Wan Kwok Keung5, the Court of Appeal stated,
C C
in paragraph 13 of the judgment, that:-
D “Generally, the sentence for “money laundering” offence should mainly D
reflect the amount of “black money” laundered and not the benefit
obtained by the defendant or others. The reason being that it is very
E E
difficult to prove the benefit concerned, and in most “money
laundering” cases, there may not be evidence to show from what
F indictable offence the “black money” are in fact derived. Of course if F
there is information to prove that the “black money” is originated from
serious crimes, including drug trafficking, kidnap and blackmail, illegal
G human trafficking, other organized crimes, etc. or the defendant’s G
benefit is huge, then the sentence should be adjusted upward.”
H H
28. The same principle was reiterated by the Court of Appeal in
I Secretary for Justice v Ngai Fung Sin Apple [2013] 5 HKLRD 104. In I
paragraph 44 of the judgment, the Court of Appeal stated:-
J J
“Generally speaking, the sentence passed in a “money laundering” case
is primarily to reflect the amount of the “illicit/black money”
K involved. Neither the fact that the “illicit/black money” was actually K
not derived from an indictable offence nor the defendant’s ignorance of
the actual source of the “illicit/black money” is necessarily a valid
L L
mitigating factor. On the other hand, if there is evidence which can
prove from what serious crimes the “illicit/black money” was derived
M and if the defendant was aware of the origin of the “illicit/black M
money”, that would be an aggravating factor (see Secretary for Justice
v Lau Man Ying [2012] 4 HKLRD 429 and HKSAR v Xu Xia Li & Anor
N [2004] 4 HKC16). Based on the same rationale, the fact that the N
defendant of a “money laundering” case has not obtained any financial
O benefit is not a mitigating factor.” O
29. In Boma Amaso, the Court of Appeal pointed out that
P P
deterrence was the paramount sentencing consideration, but cautioned
Q that the amount of money laundered was not the be-all and end-all of a Q
case though it was a significant feature. It further provided a non-
R R
exhaustive list of factors, such as the nature of the predicate offence, the
S state of the offender’s knowledge, any international dimension in the S
operation, the sophistication of the offence including the degree of
T T
5
CAAR13/2010, [2012] 1 HKLRD 197 (Chinese), [2012] 1 HKLRD 201 (English)
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B B
planning, the involvement of organized criminal syndicate, the number of
C transactions, the length of time over which the offence was committed, C
whether the offender continued to launder funds after discovering that the
D D
funds were proceeds of a crime, as well as the role of the offenders and
E the acts performed by him6. E
F F
30. As to the role of the offender and the acts performed by him,
G Stock VP (as he then was) pointed out that “the director of a laundering G
operation or scheme should attract a greater sentence than a person
H H
engaged by him although sentences should be sufficient to deter those
I who might be prevailed upon by directing minds”. Stock VP stressed that I
it was important to note the “gradations of culpability”, giving the
J J
example that a drug addict or petty crook who was paid a small sum to
K open an account and hand over its operation to another with no more K
participation and no more knowledge than that it is going to be used for
L L
some sort of crime is much less culpable than an offender of a different
M sort not “used” in that way7. M
N N
31. In the present case, the amount of money laundered was
O
HK$2,529,062.40. Mr. Ng says that this was a lot of money, though it O
must also be said there were many cases where the amounts of money
P P
laundered were much larger than this amount. The Account had been
Q
used to receive and withdraw “black money” for 6 days only, i.e. between Q
25 March 2022 and 30 March 2022. Hence, the scale of operation can be
R R
described as medium or might even be small, and definitely not within
S the substantial category. S
T 6 T
See paragraphs 38 to 40 of the judgment in Boma Am aso.
7
Paragraph 40(8) of the judgment in Boma Amaso.
U U
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A A
B B
32. Nevertheless, bearing in mind that the sentencing purposes to
C C
be achieved are punishment and deterrence both in the specific sense (i.e.
D deterring the defendant from committing the same offence again) and in D
the general sense (i.e. deterring other people from committing the same or
E E
similar offence), a sentence of immediate imprisonment is the only
F appropriate sentencing option even though the defendant has pleaded F
guilty and does not have any prior criminal record. In fact, Mr. Ng
G G
concedes that imprisonment is inevitable.
H H
33. In the present case, the defendant claims that he had lent his
I I
bank account to a friend at the latter’s request. The defendant’s claim is
J very suspicious. It is because the defendant could have easily turned J
down the request of his friend by saying that he had no bank account to
K K
lend. It is noted that the defendant opened the Account only on 24 March
L 2022, and he must have “lent” it out immediately thereafter since the L
Account started to receive “black money” on the very next day, i.e. 25
M M
March 2022.
N N
34. Furthermore, this was clearly not a case where the defendant
O just lent to his friend a bank account that he had already had at the time of O
his friend’s request. From the fact that the Account was opened on 24
P P
March 2022 and “black money” started to be deposited into the Account
Q on the following day (and if the defendant himself had no connection Q
whatsoever with the predicate offence, as he is claiming now), the only
R R
reasonable and irresistible inference must be that this was a case where
S the defendant opened the Account at the request of his friend, passed it S
over to his friend, relinquished completely his control over the operation
T T
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of the Account to his friend, and had never had an intention to take the
C Account back from his friend. C
D 35. And all these were done by the defendant, as he has admitted D
now, at the time when he did not know much about this friend, and the
E E
defendant’s admission must be correct as corroborated by the fact that he
F did not even know how to contact this friend or the person introducing F
this friend to him now. It is clear in my view that any reasonable man in
G G
the position of the defendant would have reasonable ground to believe
H that the Account that he had opened for this friend would be used in H
connection with criminal offences of some sort. As it turns out, Mr. Chan
I I
Tim-loi and Ms Chan Tsz-yuk who were victims of the deception
J J
offences referred to earlier had paid a total of HK$354,005 into the
K
Account, and these proceeds of indictable offences were withdrawn and K
cannot be traced now.
L L
M
36. Mr. Chan Tim-loi and Ms Chan Tsz-yuk were victims of M
deception offences. They did not just pay money into the Account
N N
opened by the defendant. Mr. Chan paid the swindlers into different bank
O
accounts between 9 March 2022 and 31 March 2022, and Ms Chan did O
the same between 21 March 2022 and 11 April 2022, which means that
P P
some people had practiced deception on them even before the defendant
Q
opened the Account. The only reasonable and irresistible inference must Q
be that the predicate offences against Mr. Chan and Ms Chan were
R R
committed by one or more than one syndicate, and that the defendant had
S made the Account available for use of such syndicate or syndicates. S
T 37. As I have already alluded, amongst the money paid into the T
Account, HK$354,005 had been proven to be proceeds of indictable
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B B
offences, even though there is no or no sufficient evidence to prove that
C the defendant took part in or had knowledge of such indictable offences. C
D 38. There is no evidence of any international dimension in the D
operation of the predicate offence or the money laundering operation.
E E
There is also no or no sufficient evidence to show that the defendant took
F part in or had knowledge of the predicate offence. I have grave suspicion F
that the defendant had actually received benefit for opening the Account
G G
and given it to his friend, but whether or not he had actually received
H benefit, it makes little difference to the sentence, since according to the H
authorities, what matters includes the amount of money laundered, and
I I
not the benefit received by the defendant.
J J
39. In Wan Kwok Keung, from the money laundering cases that
K K
were set out in Hsu Yu Yi with the amounts involved and the sentences
L imposed, Yeung JA (as he then was) observed that: L
“In HKSAR v Hsu Yu Yi [2010] 5 HKLRD 536, Cheung JA set out the
M amounts of money involved and the sentences passed in a number of M
“money laundering” cases. The sentencing starting point is 3 years or
so where the “black money” involved is between 1 million and 2
N million dollars, 4 years or so where it is between 3 million and 6 N
million dollars, and could be over 5 years where it is above 10 million
O
dollars.” O
P 40. The observation by Yeung JA has been consistently referred P
to in cases thereafter, such as 香港特別行政區訴廖麗婷 8; 香港特別行
Q Q
政區對 Tsang Yiu Kong (曾耀光) 9.
R R
41. In the present case, the amount of money laundered was
S S
HK$2,529,062.40 by means of 53 deposits over a period of 6 days. Mr.
T 8 T
CACC334/2015
9
CACC77/2022, [2024] HKCA 1062
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A A
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Ng submits that the Court may adopt a starting point of imprisonment for
C 3 years and 6 months. Virtually all “black money” had been withdrawn C
from the Account.
D D
42. Having considered the facts of this case, and the sentencing
E E
considerations as set out in Boma Amaso, I consider that an immediate
F term of imprisonment for 36 months to be the appropriate starting point. F
Despite the submission of Mr. Ng, I am of the view that this is the proper
G G
starting point, bearing in mind particularly of the role played by the
H defendant in the offence (as I have said before), and in line with the H
observation of Yeung V.P. on the sentencing quantum in Wan Kwok
I I
Keung.
J J
43. There is no aggravating feature in this case that requires an
K K
increase of the starting point.
L L
44. The defendant has entered a timely guilty plea. He is entitled
M to have his sentence discounted by one-third. M
N N
45. I have also considered all other matters that have been raised
O
in the mitigation of Mr. Ng and the three mitigation letters. I have no O
reason to doubt the defendant’s remorse, and the support of his family for
P P
his rehabilitation. I note that he has a clear record. However, after he has
Q
been given one-third discount of the sentence, these all other matters have Q
little mitigating effect.
R R
46. For these reasons, but for the prosecution’s application for
S S
enhancement of the sentence pursuant to section 27(11) of the OSCO, the
T sentence to be imposed on the defendant will be 24 months’ T
imprisonment.
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A A
B B
Application for enhancement of sentence
C C
47. The prosecution requests the Court to impose a heavier
D sentence on the defendant under section 27(11)(b) of the OSCO. Mr. Ng D
does not dispute that the prosecution has fulfilled the procedural
E E
requirements of the application for an increased sentence.
F F
48. In support of the application for an enhanced sentence, the
G G
prosecution has submitted two witness statements made by Chief
H Inspector Li Yiu Nam (“CIP Li”) dated 25 August 2025 and 5 September H
2025 respectively pursuant to section 27(2)(c) and (d) of the OSCO as
I I
supporting information. CIP Li provided the Court with information and
J J
data from 2020 to July 2025 on the prevalence of the use of "stooge" in
K
the commission of money laundering offences and the nature and extent K
of the harm to the community caused directly or indirectly by recent
L L
occurrence of such offences. Mr. Ng does not object to the admissibility
M
of the witness statements made by CIP Li. He does not require CIP Li to M
be cross-examined, and there is no evidence from the defence on the
N N
sentence enhancement issue.
O O
49. In fact, Mr. Ng does not oppose the prosecution’s application
P for enhancement of sentence under the OSCO. P
Q 50. According to CIP Li, a "money laundering stooge" is Q
someone who has assisted in the money laundering activities but has no
R R
or minimal involvement in the predicate offence, or has little or no
S knowledge of the predicate offence. Police have discovered that many S
money laundering stooges in Hong Kong have sold or loaned their own
T T
accounts at financial institutions (such as bank accounts or stored value
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A A
B B
facility accounts) to criminals for money laundering purposes. Some
C money laundering stooges are recruited to open new accounts at financial C
institutions. In either case, the purpose is the same, i.e. the stooges allow
D D
criminals to use their accounts for money laundering purposes. Only a
E very small number of stooges actually operate the accounts for criminals, E
while the majority of stooges allow criminals to have full access and
F F
control of their accounts.
G G
51. It is clear from the admission of the defendant that he was
H acting as a money laundering stooge, if he were not involved in or had H
knowledge of the predicate offence as he is claiming now and has been
I I
sentenced on this basis.
J J
52. Based on the witness statements provided by CIP Li and the
K K
data listed in Table A of his first statement, it is clear that deception cases
L and money laundering cases are widespread and on the rise from 2020 to L
2024. The total number of deception cases and money laundering cases
M M
(detected and undetected cases) was 16,643 in 2020, 20,114 in 2021,
N 28,936 in 2022, 42,004 in 2023, and 47,063 in 2024. On the other hand, N
from January to July 2025, the total number of these cases was 26,931.
O O
53. Furthermore, majority of the arrested persons (in detected
P P
cases) served as money laundering stooges. According to the data
Q provided by CIP Li in Table A of his first statement, in 2020, a total of Q
2,422 persons were arrested, of which 760 persons (31.38%) were
R R
stooges; in 2021, 3,807 persons were arrested, of which 2,200 persons
S (58.31%) were stooges; in 2022, 5,264 persons were arrested, of which S
3,708 persons (70.44%) were stooges; in 2023, 9,239 persons were
T T
arrested, of which 6,485 persons (70.19%) were stooges; and in 2024,
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A A
B B
10,496 persons were arrested, of which 7,883 persons (75.10%) were
C stooges. On the other hand, from January to July 2025, the total number C
of persons arrested was 4,404, of which 3,147 persons (71.46%) were
D D
stooges.
E E
54. CIP Li has also set out in Table B of his first statement the
F amount of reported losses and/or proceeds laundered, and use of stooge F
accounts in deception cases and money laundering cases (detected with
G G
arrest). It appears from Table B that the amount of losses reported by the
H victims and the proceeds of crime laundered has always been quite large. H
I I
55. The data provided by CIP Li in Table B are as follows:
J (a) In 2020, 1,844 deception and money laundering cases were J
detected and arrests were made, with the victims reporting total
K K
losses of HK$3,017.89 million. Of these, 845 cases involved losses
L through stooge accounts, with total losses of HK$1,879.83 million, L
accounting for 62.29% of the total losses reported by the victims.
M M
(b) In 2021, 2,269 deception and money laundering cases were
N N
detected and arrests were made, with the victims reporting total
O losses of HK$9,662.30 million. Of these, 1,451 cases involved O
losses through stooge accounts, with total losses of HK$5,565.15
P P
million, accounting for 57.60% of the total losses reported by the
Q victims. Q
R R
(c) In 2022, 3,705 deception and money laundering cases were
S detected and arrests were made, with the victims reporting total S
losses of HK$36,644.73 million. Of these, 2,886 cases involved
T T
losses through stooge accounts, with total losses of HK$36,320.17
U U
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A A
B B
million, accounting for 99.11% of the total losses reported by the
C victims. C
D (d) In 2023, 5,529 deception and money laundering cases were D
detected and arrests were made, with the victims reporting total
E E
losses of HK$12,033.26 million. Of these, 3,970 cases involved
F losses through stooge accounts, with total losses of HK$9,984.38 F
million, accounting for 82.97% of the total losses reported by the
G G
victims.
H H
(e) In 2024, 5,250 deception and money laundering cases were
I I
detected and arrests were made, with the victims reporting total
J losses of HK$6,115.15 million. Of these, 3,675 cases involved J
losses through stooge accounts, with total losses of HK$4,466.39
K K
million, accounting for 73.04% of the total losses reported by the
L victims. L
M (f) From January to July 2025, 1,359 deception and money laundering M
cases were detected and arrests were made, with the victims
N N
reporting total losses of HK$2,308.98 million. Of these, 574 cases
O involved losses through stooge accounts, with total losses of O
HK$654.64 million, accounting for 28.35% of the total losses
P P
reported by the victims.
Q Q
56. It is clear from the data provided by CIP Li in Table B of his
R R
first statement that for the period between January 2025 and July 2025,
S the amount of reported losses in all the deception and money laundering S
cases that had been detected with arrest has dropped significantly, as
T T
compared to the corresponding data for each of the years between 2020
U U
V V
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A A
B B
and 2024. For instance, in the first 7 months in 2025, the reported losses
C of these cases were HK$2,308.98 million, whereas the corresponding data C
for 2024 were HK$6,115.15 million. Likewise, the amount of reported
D D
losses in these cases (detected with arrest) involving the use of stooge
E accounts had also dropped significantly. The data for the first 7 months E
in 2025 were HK$654.64 million, accounting for only 28.35% of the
F F
reported losses of all these cases that had been detected with arrest,
G whereas the corresponding data for 2024 was HK$4,466.39 million, G
accounting for 73.04% of the reported losses of all these cases that had
H H
been detected with arrest. This Court therefore suggested that CIP Li
I should provide further evidence on how these changes in the data affected I
the issue on the prevalence of the use of stooge accounts in deception and
J J
money laundering cases, and the harm and damage caused by the use of
K stooge accounts. K
L L
57. It was for this reason that CIP Li filed his second witness
M statement dated 5 September 2025. In his second statement, CIP Li M
points out that if a detected case (deception or money laundering) has no
N N
stooge account identified at the time when the data was captured, the
O amount of loss in that case will not fall into column 4 of Table B (i.e. the O
amount of losses in detected with arrest cases involving the use of stooge
P P
accounts). In addition, CIP Li explains the data further by saying that in
Q respect of one of the deception cases reported in July 2025 (CCB RN Q
25001290), the reported loss was about HK$1.06 billion, and that case
R R
had no stooge account identified yet. If this outlier case is excluded, the
S reported losses in all deception and money laundering cases (detected S
with arrest) would decrease to HK$1,248.98 million, and the amount of
T T
U U
V V
- 19 -
A A
B B
reported losses of these cases involving the use of stooge accounts would
C then represent 52.4% (instead of 28.35%) of the adjusted total. C
D 58. Since there is no dispute to the evidence of CIP Li, I accept, D
beyond reasonable doubt, the truth and accuracy of CIP Li’s evidence and
E E
give full weight to the information he has provided.
F F
59. Under section 27 of the OSCO, I must consider whether the
G G
relevant offences are still prevalent at the time of sentencing (rather than
H when the offences were committed) because the purpose of increasing the H
sentence is to target those who intend to commit the relevant offences:
I I
see HKSAR v Chung Chi Keung10. Furthermore, in considering whether
J the relevant offences are prevalent, I should not focus on whether the J
number of the relevant offences has increased or decreased, but rather on
K K
the prevalence of the offences: see HKSAR v Xu Mai-qing (徐麥清)11.
L L
60. Mr. Chu, Senior Public Prosecutor, submits that even if the
M M
Court finds that there is a decrease in the amount of losses in all the
deception and money laundering cases involving the use of stooge
N N
account, these offences are still prevalent and the harm caused to the
O
community is still substantial. The defendant’s sentence should still be O
P
enhanced under the OSCO, and the decrease may only be relevant to the P
percentage of enhancement.
Q Q
61. Mr. Ng makes no further submissions after the prosecution
R R
has filed the second witness statement of CIP Li.
S S
T 10 T
CACC504/2001, paragraph 24
11
CACC464/2005, paragra ph 16
U U
V V
- 20 -
A A
B B
62. In my judgment, according to data provided by CIP Li in
C Table A of his first statement, the total number of deception cases and C
money laundering cases (detected and undetected) is 26,931 for the first 7
D D
months in July 2025, which means that on average, about 3,847 cases
E occurred each month, or about 128 cases per day assuming each month E
has 30 days. If this average figure applies to the whole year of 2025, there
F F
will be a notional number of 46,164 cases, which will be very close to the
G total number of cases in 2024 (47,063), and more than the number of G
cases in each of the years between 2020 and 2023. It means that
H H
deception and money laundering cases are still very prevalent in Hong
I Kong. I
J J
63. As to the data provided in Table B, what has been revealed is
K
that the number of deception and money laundering cases (detected with K
arrest) has dropped significantly in the first 7 months of 2025. Only
L L
1,359 cases were detected with arrest, which means that on average, only
M
194 cases each month. When these figures are compared with the data M
for 2024 when a total of 5,250 cases were detected with arrest (or an
N N
average of 437 cases each month), there is a decrease in the number of
O
such cases. As such, it must follow that the amount of reported losses of O
such detected with arrest cases in the first 7 months of 2025 has dropped
P P
as compared with the previous year, but it does not reflect the true picture
Q
of the prevalence of the offence. In terms of absolute figures, a loss of Q
2,308.98 million in the first 7 months of 2025 means on average, a loss of
R R
329.85 million a month, which must still be a substantial loss to the
S community. S
T 64. Furthermore, the data in Table B shows that even though the T
amount of losses in the detected with arrest cases of deception and money
U U
V V
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A A
B B
laundering involving stooge accounts made up only 28.35% of the total
C reported losses in all the detected with arrest cases, in terms of absolute C
figures, the amount of reported losses involving stooges in these detected
D D
with arrest cases is still as high as HK$654.64 million, representing an
E average of HK$93.52 million a month in the first 7 months of 2025. E
Furthermore, if the exceptional case involving a loss of HK$1.06 billion
F F
is not to be counted, the amount of losses in such detected with arrest
G cases of deception and money laundering involving stooge accounts G
would account for 52.4% of the total losses in all these detected with
H H
arrest cases. In terms of the number of such detected with arrest cases
I involving stooge accounts, there are 574 cases in these 7 months, or on I
average 82 cases each month, or more than 2 and nearly 3 cases a day. In
J J
my judgment, such data show that the use of stooge accounts in the
K commission of deception and money laundering case is still prevalent. K
L L
65. In addition, I believe that the data in Table A also provides an
M
indicator of the prevalence of the use of stooges and the severity of the M
harm caused. Table A shows that in 2020, the use of money laundering
N N
stooges was not common among fraudsters. Among those arrested that
O
year, only 31.38% were stooges. However, starting from 2021, the use of O
stooges to obtain proceeds of crimes became a common tactic in the
P P
commission of the predicate offences. In 2021, the percentage of arrested
Q
persons who were stooges to the total number of arrested persons rose to Q
58.31%, and this percentage remained at or above 70% for each of the
R R
years between 2022 and 2024. Even in the first 7 months of 2025, the
S percentage of stooges arrested to the total number of arrested persons S
stands at 71.46%. This also demonstrates that the use of stooges to
T T
commit the specified offences remains prevalent.
U U
V V
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A A
B B
66. Based on the information provided by the prosecution
C C
through CIP Li, I find that the prosecution has successfully proved
D beyond reasonable doubt that the specified offence committed by the D
defendant is still widespread and that the community has suffered
E E
significant losses, directly or indirectly, as a result of the recent
F occurrence of such offences. For this reason, I grant the prosecution’s F
application to enhance the defendant’s sentence.
G G
H 67. I also rule that in order to deter anyone from acting as a H
money laundering stooge, the proper percentage of enhancement should
I I
be one-third of the original sentence.
J J
68. As I have said before, the defendant’s sentence before
K enhancement is 24 months’ imprisonment. For the reasons aforesaid, and K
with an enhancement by one-third, the defendant is accordingly sentenced
L L
to a term of 32 months’ imprisonment.
M M
N N
O
W.K. Kwok O
District Judge
P P
Q Q
R R
S S
T T
U U
V V
A A
B B
DCCC 923/2024
C C
[2025] HKDC 1670
D D
IN THE DISTRICT COURT OF THE
E E
HONG KONG SPECIAL ADMINISTRATIVE REGION
F CRIMINAL CASE NO 923 OF 2024 F
G G
--------------------------
H HKSAR H
v
I I
TAO Ching-chung
J --------------------------- J
K K
Before: His Honour Judge W.K. Kwok
L Date: 29 September 2025 L
Present: Mr Jonathan Chu Ka Shing, Senior Public Prosecutor, for
M M
HKSAR
N Mr Alan Ng Hoi Lun, instructed by Messrs Lo, Wong & N
Tsui, assigned by the Director of Legal Aid, for the
O O
defendant
P Offence: Dealing with property known or believed to represent P
proceeds of an indictable offence (處理已知道或相信為代
Q Q
表從可公訴罪行的得益的財產)
R R
S
--------------------------------------- S
REASONS FOR SENTENCE
T T
---------------------------------------
U U
V V
-2-
A A
B B
1. The defendant pleads guilty to one charge of dealing with
C property known or believed to represent proceeds of an indictable offence, C
contrary to section 25(1) and (3) of the Organized and Serious Crimes
D D
Ordinance (“OSCO”), Chapter 455. He admits the Summary of Facts
E presented by the prosecution. Upon his plea and the facts he has admitted, E
he is convicted as charged.
F F
G Facts G
2. On 24 March 2022, the defendant opened a bank account
H H
(“the Account”) with the Bank of China (Hong Kong) Limited (“the
1
I Bank”). The defendant was the sole signatory of the Account. I
J J
3. When the defendant set up the Account, he reported to the
K Bank that he opened it for savings or salary purpose. In the opening K
mandate, he stated that he worked as a supervisor in an engineering
L L
company with a monthly income of HK$10,000 to HK$25,000.
M M
4. During the period from 25 March 2022 and 30 March 2022,
N N
53 deposits were made into the Account, totaling HK$2,529,062.40.
O O
5. One of the deposits was made by Mr. Chan Tim-loi. Mr.
P Chan transferred HK$254,005 into the Account on 30 March 2022. At P
that time, Mr. Chan was a retired person. He fell victim to an online
Q Q
romance cum investment scam through a dating app “Speedy Loving”.
R Mr. Chan was deceived to invest in the US stock market and R
cryptocurrency with a promise of lucrative return. He had remitted a total
S S
of HK$696,045 into 8 local bank accounts (including the Account)
T T
1
Full particulars of the A ccount ha ve been set out in the Particulars of the Charge.
U U
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A A
B B
provided by the unknown swindler between 9 March 2022 and 31 March
C 2022. Later when he could not withdraw his money, he realized that he C
had been deceived. He made a report to the police.
D D
6. Another deposit into the Account was made by Ms Chan
E E
Tsz-yuk. Ms Chan received telephone calls from unknown swindlers
F who alleged that Ms Chan had been involved in money laundering F
activities in the Mainland. Pursuant to the instructions of the swindlers,
G G
Ms Chan transferred a total of HK$400,000 into 3 local bank accounts as
H directed by the swindlers between 21 March 2022 and 11 April 2022, H
including a transfer of HK$100,000 into the Account on 29 March 2022.
I I
Ms Chan later realized that this was a scam and made a report to the
J J
police.
K K
7. During the same period from 25 March 2022 and 30 March
L 2022, 83 withdrawals were made from the Account, totaling L
HK$2,528,926.69.
M M
8. Police investigation revealed that the Account was mainly
N N
active from 28 March 2022 to 30 March 2022 with numerous inbound
O and outbound transactions each day. In general, the amount of deposits O
ranged from a few thousand dollars to HK$400,000. The incoming funds
P P
were quickly transferred out of the Account (by faster payment system)
Q either at similar amount or with smaller amount in multiple transactions Q
on the same day. Features of test payments and numerous counterpart
R R
were detected. The Account maintained a low account balance each day.
S S
T T
U U
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A A
B B
9. The defendant was arrested on 16 October 2022. He
C remained silent under caution at the time of arrest and during subsequent C
video-recorded interview.
D D
10. When the defendant pleads guilty to the Charge, he also
E E
admits that: -
F (a) The amount and velocity of the transactions in the F
Account were not commensurate with the defendant’s
G G
background and reported income.
H (b) The account was used as a temporary repository of funds, H
with confirmed proceeds of crime originated from
I I
different scams.
J J
(c) At the relevant times as particularized in the Charge, the
K
defendant, knowing or having reasonable grounds to K
believe that the total sum of HK$2,529,062.40 deposited
L L
into the Account, in whole or in part, directly or
M
indirectly represented any person’s proceeds of an M
indictable offence, dealt with these sums of money.
N N
O
Criminal record of the defendant O
11. The defendant has a clear criminal record.
P P
Q
Personal and family background Q
12. The defendant was born on 7 April 1997 in Hong Kong. He
R R
is 28 years old now. He is single. His parents have divorced.
S S
13. According to the mitigation letters written by the defendant,
T T
his mother and stepfather, the defendant’s parents separated when the
U U
V V
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A A
B B
defendant was two years old. The defendant then lived with his father
C who soon had another marriage. The defendant was later sent by his C
father and stepmother to live with different relatives for different periods
D D
of time, and he was passed around like a “human ball”. It was only when
E the defendant was studying in Primary Three that his mother managed to E
obtain the custody of the defendant from the Court. The defendant lived
F F
with his mother and stepfather thereafter.
G G
14. The defendant received education in Hong Kong up to Form
H Two. When he was 13 years old, he went to New Zealand where he H
received education from Year 9 to Year 13. He was offered a vacancy by
I I
a university, but due to financial difficulties, he was unable to continue
J J
with his education there and returned to Hong Kong in 2016.
K K
15. At the time of his arrest, the defendant was working as a
L clerk in a finance company with a fluctuating monthly income between L
HK$16,000 and HK$20,000. He is now working as a warehouse worker.
M M
16. The defendant’s mother is now 57 years old. In 2024, the
N N
defendant and his friend rented a flat in Tuen Mun and lived there, but he
O has just now moved back to live with his mother in Yuen Long. O
P P
Mitigation
Q
17. According to Mr. Alan Ng, learned counsel for the defendant, Q
the defendant came to know a person via a friend in 2021, and they
R R
became friends. That person shared defendant all his living experience
S including his unsatisfactory job and sour family relationship. This person S
then asked the defendant to lend him a bank account because he did not
T T
want his family member to know his financial situation. Out of naivety,
U U
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A A
B B
the defendant complied with the request. Mr. Ng says that the defendant
C did not ask his friend the purpose of having a bank account, but stresses C
that the defendant received no benefit for helping his friend.
D D
E 18. According to Mr. Ng, the defendant cannot contact this E
person, or the friend who introduced this friend to him.
F F
G 19. Mr. Ng submits that there is no evidence that shows or G
implies that the defendant knew anything about the syndicate or the crime
H H
behind the movement of the money in and out of the Account. He
I submits that this is a case where the defendant is guilty of the charge only I
on the limb that he had reasonable grounds to believe (not actual
J J
knowledge) that the property represented any person’s proceeds of an
K indictable offence. Mr. Ng submits that the defendant was only a “cog in K
the machinery” who received no benefit whatsoever.
L L
M
20. Mr. Ng points out that the defendant was 25 years old at the M
time of the offence, and that while he had heard of money laundering
N N
cases in the news at that time, money laundering was something new to
O
him. Mr. Ng submits that the defendant accepts that he should have O
asked this friend more questions before lending his bank account to this
P P
friend, such as why he needed this bank account, as well as when he
Q
would start using and finish using the Account. Mr. Ng submits that any Q
reasonable man in the defendant’s position would have asked this friend
R R
these questions but the defendant had failed to do so. Mr. Ng further
S submits that when the defendant thinks about the matter again, he realizes S
that he did not really know this friend much, and that he in fact did not
T T
entirely trust this friend, but he acceded to his request anyway.
U U
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A A
B B
21. Mr. Ng accepts that the amount of money involved, i.e.
C C
about HK$2.5 million, was a lot of money, but stresses that the money
D laundering activities in question last for 6 days only, i.e. from 25 March D
to 30 March 2022, and that only one bank account was involved.
E E
F 22. Mr. Ng also accepts that a sentence of imprisonment is F
inevitable in light of the judgment of the Court of Appeal in Secretary for
G G
Justice v Siu Yun Yee 2, but asks for a sentence as lenient as possible. He
H stresses that the defendant has a clear record, and that the defendant H
wishes to resume working and looking after his mother as soon as
I I
possible.
J J
3
23. Mr. Ng also refers to HKSAR v Hsu Yu Yi and HKSAR v A
K male known as Boma Amaso4 to assist this Court in sentencing. K
L L
24. Mr. Ng submits mitigation letters written by the defendant,
M
his mother and stepfather. This Court has duly considered all of them. M
N Reasons for sentence N
25. Money laundering is a serious offence. Section 25(3) of the
O O
OSCO provides that the maximum penalty upon conviction on indictment
P is a fine of HK$5 million and imprisonment for 14 years. P
Q 26. Since the facts of money laundering offences vary from case Q
to case, there are no sentencing guidelines, but the sentencing principles
R R
are clear.
S S
2
CAAR6/2016, [2017] 3 HKLRD 678
T 3 T
CACC159/2009, [2010] 5 HKLRD 545
4
CACC335/2010, [2012] 2 HKLRD 33
U U
V V
-8-
A A
B B
27. In HKSAR v Wan Kwok Keung5, the Court of Appeal stated,
C C
in paragraph 13 of the judgment, that:-
D “Generally, the sentence for “money laundering” offence should mainly D
reflect the amount of “black money” laundered and not the benefit
obtained by the defendant or others. The reason being that it is very
E E
difficult to prove the benefit concerned, and in most “money
laundering” cases, there may not be evidence to show from what
F indictable offence the “black money” are in fact derived. Of course if F
there is information to prove that the “black money” is originated from
serious crimes, including drug trafficking, kidnap and blackmail, illegal
G human trafficking, other organized crimes, etc. or the defendant’s G
benefit is huge, then the sentence should be adjusted upward.”
H H
28. The same principle was reiterated by the Court of Appeal in
I Secretary for Justice v Ngai Fung Sin Apple [2013] 5 HKLRD 104. In I
paragraph 44 of the judgment, the Court of Appeal stated:-
J J
“Generally speaking, the sentence passed in a “money laundering” case
is primarily to reflect the amount of the “illicit/black money”
K involved. Neither the fact that the “illicit/black money” was actually K
not derived from an indictable offence nor the defendant’s ignorance of
the actual source of the “illicit/black money” is necessarily a valid
L L
mitigating factor. On the other hand, if there is evidence which can
prove from what serious crimes the “illicit/black money” was derived
M and if the defendant was aware of the origin of the “illicit/black M
money”, that would be an aggravating factor (see Secretary for Justice
v Lau Man Ying [2012] 4 HKLRD 429 and HKSAR v Xu Xia Li & Anor
N [2004] 4 HKC16). Based on the same rationale, the fact that the N
defendant of a “money laundering” case has not obtained any financial
O benefit is not a mitigating factor.” O
29. In Boma Amaso, the Court of Appeal pointed out that
P P
deterrence was the paramount sentencing consideration, but cautioned
Q that the amount of money laundered was not the be-all and end-all of a Q
case though it was a significant feature. It further provided a non-
R R
exhaustive list of factors, such as the nature of the predicate offence, the
S state of the offender’s knowledge, any international dimension in the S
operation, the sophistication of the offence including the degree of
T T
5
CAAR13/2010, [2012] 1 HKLRD 197 (Chinese), [2012] 1 HKLRD 201 (English)
U U
V V
-9-
A A
B B
planning, the involvement of organized criminal syndicate, the number of
C transactions, the length of time over which the offence was committed, C
whether the offender continued to launder funds after discovering that the
D D
funds were proceeds of a crime, as well as the role of the offenders and
E the acts performed by him6. E
F F
30. As to the role of the offender and the acts performed by him,
G Stock VP (as he then was) pointed out that “the director of a laundering G
operation or scheme should attract a greater sentence than a person
H H
engaged by him although sentences should be sufficient to deter those
I who might be prevailed upon by directing minds”. Stock VP stressed that I
it was important to note the “gradations of culpability”, giving the
J J
example that a drug addict or petty crook who was paid a small sum to
K open an account and hand over its operation to another with no more K
participation and no more knowledge than that it is going to be used for
L L
some sort of crime is much less culpable than an offender of a different
M sort not “used” in that way7. M
N N
31. In the present case, the amount of money laundered was
O
HK$2,529,062.40. Mr. Ng says that this was a lot of money, though it O
must also be said there were many cases where the amounts of money
P P
laundered were much larger than this amount. The Account had been
Q
used to receive and withdraw “black money” for 6 days only, i.e. between Q
25 March 2022 and 30 March 2022. Hence, the scale of operation can be
R R
described as medium or might even be small, and definitely not within
S the substantial category. S
T 6 T
See paragraphs 38 to 40 of the judgment in Boma Am aso.
7
Paragraph 40(8) of the judgment in Boma Amaso.
U U
V V
- 10 -
A A
B B
32. Nevertheless, bearing in mind that the sentencing purposes to
C C
be achieved are punishment and deterrence both in the specific sense (i.e.
D deterring the defendant from committing the same offence again) and in D
the general sense (i.e. deterring other people from committing the same or
E E
similar offence), a sentence of immediate imprisonment is the only
F appropriate sentencing option even though the defendant has pleaded F
guilty and does not have any prior criminal record. In fact, Mr. Ng
G G
concedes that imprisonment is inevitable.
H H
33. In the present case, the defendant claims that he had lent his
I I
bank account to a friend at the latter’s request. The defendant’s claim is
J very suspicious. It is because the defendant could have easily turned J
down the request of his friend by saying that he had no bank account to
K K
lend. It is noted that the defendant opened the Account only on 24 March
L 2022, and he must have “lent” it out immediately thereafter since the L
Account started to receive “black money” on the very next day, i.e. 25
M M
March 2022.
N N
34. Furthermore, this was clearly not a case where the defendant
O just lent to his friend a bank account that he had already had at the time of O
his friend’s request. From the fact that the Account was opened on 24
P P
March 2022 and “black money” started to be deposited into the Account
Q on the following day (and if the defendant himself had no connection Q
whatsoever with the predicate offence, as he is claiming now), the only
R R
reasonable and irresistible inference must be that this was a case where
S the defendant opened the Account at the request of his friend, passed it S
over to his friend, relinquished completely his control over the operation
T T
U U
V V
- 11 -
A A
B B
of the Account to his friend, and had never had an intention to take the
C Account back from his friend. C
D 35. And all these were done by the defendant, as he has admitted D
now, at the time when he did not know much about this friend, and the
E E
defendant’s admission must be correct as corroborated by the fact that he
F did not even know how to contact this friend or the person introducing F
this friend to him now. It is clear in my view that any reasonable man in
G G
the position of the defendant would have reasonable ground to believe
H that the Account that he had opened for this friend would be used in H
connection with criminal offences of some sort. As it turns out, Mr. Chan
I I
Tim-loi and Ms Chan Tsz-yuk who were victims of the deception
J J
offences referred to earlier had paid a total of HK$354,005 into the
K
Account, and these proceeds of indictable offences were withdrawn and K
cannot be traced now.
L L
M
36. Mr. Chan Tim-loi and Ms Chan Tsz-yuk were victims of M
deception offences. They did not just pay money into the Account
N N
opened by the defendant. Mr. Chan paid the swindlers into different bank
O
accounts between 9 March 2022 and 31 March 2022, and Ms Chan did O
the same between 21 March 2022 and 11 April 2022, which means that
P P
some people had practiced deception on them even before the defendant
Q
opened the Account. The only reasonable and irresistible inference must Q
be that the predicate offences against Mr. Chan and Ms Chan were
R R
committed by one or more than one syndicate, and that the defendant had
S made the Account available for use of such syndicate or syndicates. S
T 37. As I have already alluded, amongst the money paid into the T
Account, HK$354,005 had been proven to be proceeds of indictable
U U
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A A
B B
offences, even though there is no or no sufficient evidence to prove that
C the defendant took part in or had knowledge of such indictable offences. C
D 38. There is no evidence of any international dimension in the D
operation of the predicate offence or the money laundering operation.
E E
There is also no or no sufficient evidence to show that the defendant took
F part in or had knowledge of the predicate offence. I have grave suspicion F
that the defendant had actually received benefit for opening the Account
G G
and given it to his friend, but whether or not he had actually received
H benefit, it makes little difference to the sentence, since according to the H
authorities, what matters includes the amount of money laundered, and
I I
not the benefit received by the defendant.
J J
39. In Wan Kwok Keung, from the money laundering cases that
K K
were set out in Hsu Yu Yi with the amounts involved and the sentences
L imposed, Yeung JA (as he then was) observed that: L
“In HKSAR v Hsu Yu Yi [2010] 5 HKLRD 536, Cheung JA set out the
M amounts of money involved and the sentences passed in a number of M
“money laundering” cases. The sentencing starting point is 3 years or
so where the “black money” involved is between 1 million and 2
N million dollars, 4 years or so where it is between 3 million and 6 N
million dollars, and could be over 5 years where it is above 10 million
O
dollars.” O
P 40. The observation by Yeung JA has been consistently referred P
to in cases thereafter, such as 香港特別行政區訴廖麗婷 8; 香港特別行
Q Q
政區對 Tsang Yiu Kong (曾耀光) 9.
R R
41. In the present case, the amount of money laundered was
S S
HK$2,529,062.40 by means of 53 deposits over a period of 6 days. Mr.
T 8 T
CACC334/2015
9
CACC77/2022, [2024] HKCA 1062
U U
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A A
B B
Ng submits that the Court may adopt a starting point of imprisonment for
C 3 years and 6 months. Virtually all “black money” had been withdrawn C
from the Account.
D D
42. Having considered the facts of this case, and the sentencing
E E
considerations as set out in Boma Amaso, I consider that an immediate
F term of imprisonment for 36 months to be the appropriate starting point. F
Despite the submission of Mr. Ng, I am of the view that this is the proper
G G
starting point, bearing in mind particularly of the role played by the
H defendant in the offence (as I have said before), and in line with the H
observation of Yeung V.P. on the sentencing quantum in Wan Kwok
I I
Keung.
J J
43. There is no aggravating feature in this case that requires an
K K
increase of the starting point.
L L
44. The defendant has entered a timely guilty plea. He is entitled
M to have his sentence discounted by one-third. M
N N
45. I have also considered all other matters that have been raised
O
in the mitigation of Mr. Ng and the three mitigation letters. I have no O
reason to doubt the defendant’s remorse, and the support of his family for
P P
his rehabilitation. I note that he has a clear record. However, after he has
Q
been given one-third discount of the sentence, these all other matters have Q
little mitigating effect.
R R
46. For these reasons, but for the prosecution’s application for
S S
enhancement of the sentence pursuant to section 27(11) of the OSCO, the
T sentence to be imposed on the defendant will be 24 months’ T
imprisonment.
U U
V V
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A A
B B
Application for enhancement of sentence
C C
47. The prosecution requests the Court to impose a heavier
D sentence on the defendant under section 27(11)(b) of the OSCO. Mr. Ng D
does not dispute that the prosecution has fulfilled the procedural
E E
requirements of the application for an increased sentence.
F F
48. In support of the application for an enhanced sentence, the
G G
prosecution has submitted two witness statements made by Chief
H Inspector Li Yiu Nam (“CIP Li”) dated 25 August 2025 and 5 September H
2025 respectively pursuant to section 27(2)(c) and (d) of the OSCO as
I I
supporting information. CIP Li provided the Court with information and
J J
data from 2020 to July 2025 on the prevalence of the use of "stooge" in
K
the commission of money laundering offences and the nature and extent K
of the harm to the community caused directly or indirectly by recent
L L
occurrence of such offences. Mr. Ng does not object to the admissibility
M
of the witness statements made by CIP Li. He does not require CIP Li to M
be cross-examined, and there is no evidence from the defence on the
N N
sentence enhancement issue.
O O
49. In fact, Mr. Ng does not oppose the prosecution’s application
P for enhancement of sentence under the OSCO. P
Q 50. According to CIP Li, a "money laundering stooge" is Q
someone who has assisted in the money laundering activities but has no
R R
or minimal involvement in the predicate offence, or has little or no
S knowledge of the predicate offence. Police have discovered that many S
money laundering stooges in Hong Kong have sold or loaned their own
T T
accounts at financial institutions (such as bank accounts or stored value
U U
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A A
B B
facility accounts) to criminals for money laundering purposes. Some
C money laundering stooges are recruited to open new accounts at financial C
institutions. In either case, the purpose is the same, i.e. the stooges allow
D D
criminals to use their accounts for money laundering purposes. Only a
E very small number of stooges actually operate the accounts for criminals, E
while the majority of stooges allow criminals to have full access and
F F
control of their accounts.
G G
51. It is clear from the admission of the defendant that he was
H acting as a money laundering stooge, if he were not involved in or had H
knowledge of the predicate offence as he is claiming now and has been
I I
sentenced on this basis.
J J
52. Based on the witness statements provided by CIP Li and the
K K
data listed in Table A of his first statement, it is clear that deception cases
L and money laundering cases are widespread and on the rise from 2020 to L
2024. The total number of deception cases and money laundering cases
M M
(detected and undetected cases) was 16,643 in 2020, 20,114 in 2021,
N 28,936 in 2022, 42,004 in 2023, and 47,063 in 2024. On the other hand, N
from January to July 2025, the total number of these cases was 26,931.
O O
53. Furthermore, majority of the arrested persons (in detected
P P
cases) served as money laundering stooges. According to the data
Q provided by CIP Li in Table A of his first statement, in 2020, a total of Q
2,422 persons were arrested, of which 760 persons (31.38%) were
R R
stooges; in 2021, 3,807 persons were arrested, of which 2,200 persons
S (58.31%) were stooges; in 2022, 5,264 persons were arrested, of which S
3,708 persons (70.44%) were stooges; in 2023, 9,239 persons were
T T
arrested, of which 6,485 persons (70.19%) were stooges; and in 2024,
U U
V V
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A A
B B
10,496 persons were arrested, of which 7,883 persons (75.10%) were
C stooges. On the other hand, from January to July 2025, the total number C
of persons arrested was 4,404, of which 3,147 persons (71.46%) were
D D
stooges.
E E
54. CIP Li has also set out in Table B of his first statement the
F amount of reported losses and/or proceeds laundered, and use of stooge F
accounts in deception cases and money laundering cases (detected with
G G
arrest). It appears from Table B that the amount of losses reported by the
H victims and the proceeds of crime laundered has always been quite large. H
I I
55. The data provided by CIP Li in Table B are as follows:
J (a) In 2020, 1,844 deception and money laundering cases were J
detected and arrests were made, with the victims reporting total
K K
losses of HK$3,017.89 million. Of these, 845 cases involved losses
L through stooge accounts, with total losses of HK$1,879.83 million, L
accounting for 62.29% of the total losses reported by the victims.
M M
(b) In 2021, 2,269 deception and money laundering cases were
N N
detected and arrests were made, with the victims reporting total
O losses of HK$9,662.30 million. Of these, 1,451 cases involved O
losses through stooge accounts, with total losses of HK$5,565.15
P P
million, accounting for 57.60% of the total losses reported by the
Q victims. Q
R R
(c) In 2022, 3,705 deception and money laundering cases were
S detected and arrests were made, with the victims reporting total S
losses of HK$36,644.73 million. Of these, 2,886 cases involved
T T
losses through stooge accounts, with total losses of HK$36,320.17
U U
V V
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A A
B B
million, accounting for 99.11% of the total losses reported by the
C victims. C
D (d) In 2023, 5,529 deception and money laundering cases were D
detected and arrests were made, with the victims reporting total
E E
losses of HK$12,033.26 million. Of these, 3,970 cases involved
F losses through stooge accounts, with total losses of HK$9,984.38 F
million, accounting for 82.97% of the total losses reported by the
G G
victims.
H H
(e) In 2024, 5,250 deception and money laundering cases were
I I
detected and arrests were made, with the victims reporting total
J losses of HK$6,115.15 million. Of these, 3,675 cases involved J
losses through stooge accounts, with total losses of HK$4,466.39
K K
million, accounting for 73.04% of the total losses reported by the
L victims. L
M (f) From January to July 2025, 1,359 deception and money laundering M
cases were detected and arrests were made, with the victims
N N
reporting total losses of HK$2,308.98 million. Of these, 574 cases
O involved losses through stooge accounts, with total losses of O
HK$654.64 million, accounting for 28.35% of the total losses
P P
reported by the victims.
Q Q
56. It is clear from the data provided by CIP Li in Table B of his
R R
first statement that for the period between January 2025 and July 2025,
S the amount of reported losses in all the deception and money laundering S
cases that had been detected with arrest has dropped significantly, as
T T
compared to the corresponding data for each of the years between 2020
U U
V V
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A A
B B
and 2024. For instance, in the first 7 months in 2025, the reported losses
C of these cases were HK$2,308.98 million, whereas the corresponding data C
for 2024 were HK$6,115.15 million. Likewise, the amount of reported
D D
losses in these cases (detected with arrest) involving the use of stooge
E accounts had also dropped significantly. The data for the first 7 months E
in 2025 were HK$654.64 million, accounting for only 28.35% of the
F F
reported losses of all these cases that had been detected with arrest,
G whereas the corresponding data for 2024 was HK$4,466.39 million, G
accounting for 73.04% of the reported losses of all these cases that had
H H
been detected with arrest. This Court therefore suggested that CIP Li
I should provide further evidence on how these changes in the data affected I
the issue on the prevalence of the use of stooge accounts in deception and
J J
money laundering cases, and the harm and damage caused by the use of
K stooge accounts. K
L L
57. It was for this reason that CIP Li filed his second witness
M statement dated 5 September 2025. In his second statement, CIP Li M
points out that if a detected case (deception or money laundering) has no
N N
stooge account identified at the time when the data was captured, the
O amount of loss in that case will not fall into column 4 of Table B (i.e. the O
amount of losses in detected with arrest cases involving the use of stooge
P P
accounts). In addition, CIP Li explains the data further by saying that in
Q respect of one of the deception cases reported in July 2025 (CCB RN Q
25001290), the reported loss was about HK$1.06 billion, and that case
R R
had no stooge account identified yet. If this outlier case is excluded, the
S reported losses in all deception and money laundering cases (detected S
with arrest) would decrease to HK$1,248.98 million, and the amount of
T T
U U
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A A
B B
reported losses of these cases involving the use of stooge accounts would
C then represent 52.4% (instead of 28.35%) of the adjusted total. C
D 58. Since there is no dispute to the evidence of CIP Li, I accept, D
beyond reasonable doubt, the truth and accuracy of CIP Li’s evidence and
E E
give full weight to the information he has provided.
F F
59. Under section 27 of the OSCO, I must consider whether the
G G
relevant offences are still prevalent at the time of sentencing (rather than
H when the offences were committed) because the purpose of increasing the H
sentence is to target those who intend to commit the relevant offences:
I I
see HKSAR v Chung Chi Keung10. Furthermore, in considering whether
J the relevant offences are prevalent, I should not focus on whether the J
number of the relevant offences has increased or decreased, but rather on
K K
the prevalence of the offences: see HKSAR v Xu Mai-qing (徐麥清)11.
L L
60. Mr. Chu, Senior Public Prosecutor, submits that even if the
M M
Court finds that there is a decrease in the amount of losses in all the
deception and money laundering cases involving the use of stooge
N N
account, these offences are still prevalent and the harm caused to the
O
community is still substantial. The defendant’s sentence should still be O
P
enhanced under the OSCO, and the decrease may only be relevant to the P
percentage of enhancement.
Q Q
61. Mr. Ng makes no further submissions after the prosecution
R R
has filed the second witness statement of CIP Li.
S S
T 10 T
CACC504/2001, paragraph 24
11
CACC464/2005, paragra ph 16
U U
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A A
B B
62. In my judgment, according to data provided by CIP Li in
C Table A of his first statement, the total number of deception cases and C
money laundering cases (detected and undetected) is 26,931 for the first 7
D D
months in July 2025, which means that on average, about 3,847 cases
E occurred each month, or about 128 cases per day assuming each month E
has 30 days. If this average figure applies to the whole year of 2025, there
F F
will be a notional number of 46,164 cases, which will be very close to the
G total number of cases in 2024 (47,063), and more than the number of G
cases in each of the years between 2020 and 2023. It means that
H H
deception and money laundering cases are still very prevalent in Hong
I Kong. I
J J
63. As to the data provided in Table B, what has been revealed is
K
that the number of deception and money laundering cases (detected with K
arrest) has dropped significantly in the first 7 months of 2025. Only
L L
1,359 cases were detected with arrest, which means that on average, only
M
194 cases each month. When these figures are compared with the data M
for 2024 when a total of 5,250 cases were detected with arrest (or an
N N
average of 437 cases each month), there is a decrease in the number of
O
such cases. As such, it must follow that the amount of reported losses of O
such detected with arrest cases in the first 7 months of 2025 has dropped
P P
as compared with the previous year, but it does not reflect the true picture
Q
of the prevalence of the offence. In terms of absolute figures, a loss of Q
2,308.98 million in the first 7 months of 2025 means on average, a loss of
R R
329.85 million a month, which must still be a substantial loss to the
S community. S
T 64. Furthermore, the data in Table B shows that even though the T
amount of losses in the detected with arrest cases of deception and money
U U
V V
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A A
B B
laundering involving stooge accounts made up only 28.35% of the total
C reported losses in all the detected with arrest cases, in terms of absolute C
figures, the amount of reported losses involving stooges in these detected
D D
with arrest cases is still as high as HK$654.64 million, representing an
E average of HK$93.52 million a month in the first 7 months of 2025. E
Furthermore, if the exceptional case involving a loss of HK$1.06 billion
F F
is not to be counted, the amount of losses in such detected with arrest
G cases of deception and money laundering involving stooge accounts G
would account for 52.4% of the total losses in all these detected with
H H
arrest cases. In terms of the number of such detected with arrest cases
I involving stooge accounts, there are 574 cases in these 7 months, or on I
average 82 cases each month, or more than 2 and nearly 3 cases a day. In
J J
my judgment, such data show that the use of stooge accounts in the
K commission of deception and money laundering case is still prevalent. K
L L
65. In addition, I believe that the data in Table A also provides an
M
indicator of the prevalence of the use of stooges and the severity of the M
harm caused. Table A shows that in 2020, the use of money laundering
N N
stooges was not common among fraudsters. Among those arrested that
O
year, only 31.38% were stooges. However, starting from 2021, the use of O
stooges to obtain proceeds of crimes became a common tactic in the
P P
commission of the predicate offences. In 2021, the percentage of arrested
Q
persons who were stooges to the total number of arrested persons rose to Q
58.31%, and this percentage remained at or above 70% for each of the
R R
years between 2022 and 2024. Even in the first 7 months of 2025, the
S percentage of stooges arrested to the total number of arrested persons S
stands at 71.46%. This also demonstrates that the use of stooges to
T T
commit the specified offences remains prevalent.
U U
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A A
B B
66. Based on the information provided by the prosecution
C C
through CIP Li, I find that the prosecution has successfully proved
D beyond reasonable doubt that the specified offence committed by the D
defendant is still widespread and that the community has suffered
E E
significant losses, directly or indirectly, as a result of the recent
F occurrence of such offences. For this reason, I grant the prosecution’s F
application to enhance the defendant’s sentence.
G G
H 67. I also rule that in order to deter anyone from acting as a H
money laundering stooge, the proper percentage of enhancement should
I I
be one-third of the original sentence.
J J
68. As I have said before, the defendant’s sentence before
K enhancement is 24 months’ imprisonment. For the reasons aforesaid, and K
with an enhancement by one-third, the defendant is accordingly sentenced
L L
to a term of 32 months’ imprisonment.
M M
N N
O
W.K. Kwok O
District Judge
P P
Q Q
R R
S S
T T
U U
V V