DCCC 1143/2023

[2024] HKDC 1413

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

CRIMINAL CASE NO. 1143 OF 2023

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REASONS FOR SENTENCE

The defendant pleaded guilty to a charge of "Conspiracy to deal with property known or believed to represent proceeds of an indictable offence". In short, he gave his bank account to someone.

Summary of Facts

2. On 26 September 2016, Dong Chen Trading Company Limited ("Dong Chen") opened a bank account (No.47-0653590) with DBS Bank (Hong Kong) Limited ("the Account"). The sole signatory of the Account was the defendant. He was the contact person for the Account as well. The mailing address for the monthly statements of the Account was a location in Yuexiu District, Guangzhou.

Deposits and withdrawals

3. Between 26 September 2016 and 10 January 2017, the Account received a total of 35 deposits which aggregated to a sum of US$3,695,884.18. A total sum of US$3,656,854.64 was withdrawn from the Account within the same period by 56 withdrawals. The transaction records showed a typical mirror pattern, in which multiple sums were deposited into the Account and the same aggregated amount was swiftly transferred out of the Account by multiple sums on the same day or within the next few days.

Background and tax information of Dong Chen

4. The defendant was the sole shareholder and director of Dong Chen. Dong Chen's business address was at an industrial building in San Po Kong, Kowloon, which was a secretarial company. Investigation revealed that Dong Chen operated no business at that address.

5. For the tax year 2016/17, Dong Chen reported no gross income in its Profit Tax Return. The Employer's Return of Remuneration and Pensions of Dong Chen filed by the defendant was also a nil return. In other words, Dong Chen had no employee in that tax year.

6. Immigration records showed that the defendant came to Hong Kong from time to time between 2016 and 2019. On the day when the application for opening the Account was submitted (i.e. 26 September 2016), there was no record showing that he was in Hong Kong.

Arrest and admissions

7. In the afternoon on 11 May 2023, the defendant attempted to withdraw the balance of the Account at DBS Bank in Central. He also applied to close the Account by submitting a form. Mr. Wong (PW1), a staff member of DBS Bank, handed the form to his manager for approval. PW1 then received notification that the application was problematic and that the Police would arrive shortly. The defendant was soon arrested. He remained silent under caution.

8. In his video recorded interviews, the defendant claimed that he has retired on medical grounds. Around 2016, he met someone surnamed Ma, who proposed to start a foreign business with him. The defendant was not required to contribute any investment capital. He was asked