International Money Laundering Raids Reveal Growing Chinese Gang Connections
Published on: October 27, 2023, 06:47h.
Last updated on: October 30, 2023, 04:52h.
International money laundering raids over the last two months have exposed a heightened connection to Chinese gangs. According to the United Nations Office on Drugs and Crime, the illegal money laundering market is estimated to be worth as much as $2 trillion annually.
This week, the Australian Federal Police (AFP) announced the seizure of assets worth over AU$50 million (US$32 million) and the arrest of seven individuals linked to an alleged money laundering syndicate known as “Long River.” Among the arrested are four Chinese nationals and three Australian citizens.
The money laundering operation was conducted through “Changjiang Currency Exchange,” a major privately-owned remittance service in Australia.
The syndicate, believed to have Chinese origins, is accused of laundering AU$229 million (US$145.07 million) in criminal proceeds derived from activities such as cyber fraud, illegal goods trafficking, and participation in violent crimes.
This marks the third instance of a China-related money laundering bust by the AFP in 2023.
Additionally, AFP officers recently arrested a Chinese national for allegedly using an Australian crime syndicate to launder AU$100 million (US$63.35 million).
In February, the AFP pressed charges against nine members of a Chinese-Australian money laundering syndicate, resulting in the seizure of assets worth over AU$150 million (US$95.02 million).
Links to Italy’s ‘Ndrangheta Mafia
Earlier this month, 33 individuals, including seven Chinese nationals, were arrested in Italy for their involvement in money laundering schemes, according to reports from Reuters.
The group acted as money brokers, laundering as much as $53 million for various organizations, including the ‘Ndrangheta mafia.
Colonel Francesco Ruis of Italy’s Guardia di Finanza, the country’s primary financial crime police force, stated that only about 20% of the operation had been dismantled.
India’s Smartphone Connection
Also this month, India’s financial crime agency apprehended four individuals for their alleged involvement in a money laundering scheme. Among them was Guangwen Kuang, a Chinese national serving as the head of administration at phone manufacturer Vivo.
Indian law enforcement has also charged Vivo and its competitor Xiaomi with criminal activity in a separate case. They are accused of aiding in the illicit transfer of funds to a news portal currently under investigation for spreading Chinese propaganda.
Vivo, owned by China’s BBK Electronics, holds the second-largest market share in India’s smartphone industry, accounting for 17% of shipments, as reported by research firm Counterpoint. The company is a significant player in the Indian market.
India was also linked to a money-laundering scandal in Dubai. Authorities have charged 14 individuals with ties to Mahadev Book, an illegal sports betting app. Of the 14, nine are currently evading arrest.
The app, launched by two Indian entrepreneurs but based in Dubai, is alleged to have generated as much as $24 million per day. It utilized a network of individuals throughout Asia, including China, to launder the proceeds.
Spain’s Drug Trafficking Raid
In September, Spanish police raided an international criminal group responsible for laundering money from drug traffickers in Europe and Asia, resulting in the arrest of 27 individuals, including Chinese and Albanian nationals.
The group reportedly laundered around $68 billion during its year of operation, but officials believe the operation may have handled even more.
According to authorities, Chinese individuals played key roles in the group. Two agents recruited Asian businesses, such as Chinese restaurants and independent shops, throughout Spain to assist in the money laundering process.