Posted on: October 27, 2023, 06:47h.
Last updated on: October 27, 2023, 06:47h.
Money laundering is big business around the world, as the recent gambling-related bust in Singapore shows, and Chinese criminal gangs seem to have figured out how to corner the market. Unfortunately for them, increased global attention is causing them to fall like dominoes.
In addition to Singapore, Australia, India, Italy and other countries have recently dropped the net on money laundering. Despite the efforts, though, the United Nations Office on Drugs and Crime believes it’s a market worth as much as $2 trillion a year.
That amount makes it difficult to stop the activity completely. This doesn’t mean there won’t be attempts, with Data Bridge Market Research indicating anti-money laundering (AML) efforts will cost as much as $4.10 billion by the end of the decade. That’s over 300% of what is spent today.
Spain Part of the List
In September, Spanish police took down an international criminal group responsible for laundering money throughout Europe and Asia from drug traffickers. They arrested 27 people, including Chinese and Albanian nationals.
The group had reportedly laundered around $68 billion in just a year. However, because the investigation took longer than that, the authorities may never know the real amount of money the gang handled.
Europol said in a statement the Chinese players had important roles in the group. Two of them, in particular, were agents that recruited Asian businesses, such as Chinese restaurants and independent shops, throughout Spain to help them launder the money.
Chinese Gangs Lend a Hand to the ‘Ndrangheta in Italy
October has been a busy month for AML specialists. In Italy, at the beginning of the month, Reuters reported that police arrested 33 people for their various roles in running a money laundering scheme.
Among those were seven Chinese nationals. The group acted as money brokers, laundering as much as $53 million for different groups, including the ‘Ndrangheta mafia.
Even the police don’t believe they’ve caught everyone or know the extent of the operation. Colonel Francesco Ruis of Italy’s Guardia di Finanza, the country’s main financial crime police force, expressed that only about 20% of the operation had been dismantled.
Australia Breaks Up Long River Gang
The Australian Federal Police (AFP) has revealed the confiscation of assets totaling over AUD50 million (US$32 million) and the apprehension of seven individuals connected to an alleged money laundering syndicate named “Long River.” Among those it arrested this week are four Chinese nationals and three Australian citizens.
The focal point of this operation is the suspected clandestine operation of “Changjiang Currency Exchange,” a major independently owned money remittance service in Australia. The syndicate, believed to be of Chinese origin, stands accused of laundering criminal proceeds amounting to AUD229 million (US$145.07 million), derived from illicit activities such as cyber fraud, the trafficking of illegal goods and involvement in violent crimes.
This marks the third instance of a China-related money laundering bust by the AFP this year. At the same time AFP officers were taking down the Long River outfit, others arrested a Chinese national on charges related to allegedly utilizing an Australian crime syndicate to launder AUD100 million (US$63.35 million). Additionally, in February, the AFP pressed charges against nine members of a Chinese-Australian money laundering syndicate, leading to the seizure of assets totaling over AUD150 million (US$95.02 million).
India Deals With Major Scandals
Earlier this month, India’s financial crime agency apprehended four individuals for alleged involvement in a money laundering scheme. Among them was Guangwen Kuang, a Chinese national serving as the head of administration at the phone manufacturer Vivo.
In a separate case, Indian law enforcement officially charged Vivo, along with its competitor Xiaomi, for criminal activity. They allegedly aided in the illicit transfer of funds to a news portal currently under investigation for disseminating Chinese propaganda.
Vivo, owned by China’s BBK Electronics, holds the second-largest market share in India’s smartphone industry. It accounts for 17% of shipments, as reported by research firm Counterpoint. The company is positioned as a significant player in the Indian market.
Another money-laundering scandal tied India to Dubai. Indian authorities have charged 14 people with links to Mahadev Book, an illegal sports betting app. Of those 14, nine are on the run.
The app was launched by two Indian entrepreneurs but established in Dubai. The platform allegedly made as much as $24 million a day. It used a network of individuals throughout Asia, including China, to launder the proceeds.
