HKSAR v. Wang Qingnian

DCCC 720/2025

[2026] HKDC 1701

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

CRIMINAL CASE NO 720 OF 2025

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REASONS FOR SENTENCE

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1.Mr Wang pleaded guilty before me to 3 charges of Conspiracy to deal with property known or believed to represent proceeds of an indictable offence, contrary to section 25(1)  and (3)  of the Organized and Serious Crimes Ordinance, Cap 455, and sections 159A and 159C of the Crimes Ordinance, Cap 200.

2.Particulars are that he, between A and B, both dates inclusive, in Hong Kong or elsewhere, conspired with a person unknown, to deal with property, namely a total sum of C Hong Kong currency in the bank account with D, account number E, knowing or having reasonable grounds to believe that the said property, in whole or in part directly or indirectly represented any person’s proceeds of an indictable offence.

3.For Charge 1, A is 5 May 2023; B is 4 August 2023; C is $2,664,884.46; D is Standard Chartered Bank (Hong Kong)  Limited; E is 57485764691.

4.For Charge 2, A is 5 May 2023; B is 27 July 2023; C is $4,028,645.87; D is CMB Wing Lung Bank Limited; E is 02060150914835.

5.For Charge 3, A is 5 May 2023; B is 27 June 2023; C is $3,508,602.32; D is Hang Seng Bank, Limited; E is 242893303888.

Facts admitted by Mr Wang

6.At all material times, Mr Wang was the sole account holder and signatory of the Charge 1 account, Charge 2 account, and Charge 3 account.

7.PWs1-4 were victims of fraud offences and they all deposited monies into Charge 1 account or Charge 2 account upon instructions of fraudsters.

8.PW1’s total loss was $370,000.00 of which $80,000.00 was deposited into Charge 1 account on 29 July 2023.

9.PW2’s total loss was $360,000.00 which was deposited into Charge 2 account in batches on two separate days namely 4 and 7 July 2023.

10.PW3’s total loss was $1,388,500.00 which was deposited into Charge 2 account in batches on two separate days namely 19 and 26 June 2023.

11.PW4’s total loss was $2,307,647.49 of which $1,988,800.00 was deposited into Charge 2 account in batches on 5 separate days namely 27 June 2023, 5 July 2023, 7 July 2023, 13 July 2023, and 24 July 2023.

Charge 1

12.On 5 May 2023, Mr Wang opened Charge 1 account in his name.  The account was closed on 28 December 2023.

13.Charge 1 account was only active between 14 June 2023 and 4 August 2023.  During the period:

(a)  A total of 35 deposits totalling $2,664,884.46 were deposited into Charge 1 account (the sum included 4 foreign currency remittances from overseas bank accounts with a total sum of Canadian dollars 30,000 and Australian dollars 46,500; they were all converted into HKD, transferred internally and included in the total HKD deposits shown above);

(b)  A total of 74 withdrawals totalling $2,664,855.00 were withdrawn from Charge 1 account;

(c)  The opening balance of Charge 1 account as at 14 June 2023 was nil and the closing balance of the account as at 4 August 2023 was $29.46; and

(d)  Suspicious transaction patterns were noted in Charge 1 account including (i)  majority of deposits made to Charge 1 account were withdrawn within the same day; (ii)  sudden dormancy of Charge 1 account; and (iii)  mirroring and layering transaction patterns.

Charge 2

14.On 5 May 2023, Mr Wang opened Charge 2 account in his name.

15.Charge 2 account was only active between 10 June 2023 and 27 July 2023. During the period:

(a)  A total of 18 deposits totalling $4,028,645.87 were deposited into Charge 2 account;

(b)  A total of 35 withdrawals totalling $4,028,420.00 were withdrawn from Charge 2 account;

(c)  The opening balance of Charge 2 account as at 10 June 2023 was nil and the closing balance of the account as at 27 July 2023 was $225.87; and

(d)  Suspicious transaction patterns were noted in Charge 2 account including (i)  majority of deposits made to Charge 2 account were withdrawn within the same day; (ii)  low day-end balances of Charge 2 account; and (iii)  mirroring and layering transaction patterns.

Charge 3

16.On 5 May 2023, Mr Wang opened Charge 3 account in his name.  A sticker (copy)  issued by the Immigration Department attached to the opening mandate of Charge 3 account indicated that Mr Wang, a Mainlander, entered Hong Kong on 5 May 2023 with a two-way travel permit.

17.Charge 3 account was only active between 14 and 27 June 2023.  During the period:

(a)  A total of 12 deposits totalling $3,508,602.32 were deposited into Charge 3 account;

(b)  A total of 23 withdrawals totalling $3,508,274.00 were withdrawn from Charge 3 account;

(c)  The opening balance of Charge 3 account as at 14 June 2023 was nil and the closing balance of the account as at 27 June 2023 was $328.32; and

(d)  Suspicious transaction pattern was noted in Charge 3 account as (i)  majority of deposits made to Charge 3 account were withdrawn within the same day; (ii)  sudden dormancy of Charge 3 account; and (iii)  mirroring transaction patterns.

Arrest

18.On 5 November 2024, Mr Wang was arrested when he entered Hong Kong via Lo Wu Border Control Point.

19.During a VRI conducted on 6 November 2024 concerning Charge 3 account, Mr Wang admitted he received $3,000.00 after passing information of that account to an unknown person in Hong Kong.

Admission

20.Mr Wang now admits the particulars of Charges 1-3, in particular, that he conspired with a person unknown to commit money laundering.

Criminal record

21.Mr Wang has a previous clear record.

Antecedents

22.Mr Wang, a Mainland resident and a two-way permit holder, is aged 50 (47 at the time of the offences), educated to Primary 5, was a real estate agent.

Mitigation

23.Mr Ricky Li of counsel assigned by the Director of Legal Aid mitigated on behalf of Mr Wang.  The following is a summary of the mitigation submissions.

24.Mr Wang was born in the Mainland.  He is single.

25.Before his arrest, Mr Wang was living in the Mainland with his father until he passed away in 2024.  Mr Wang was an estate agent earning roughly RMB 5,000 per month.

26.Mr Wang has a clear record.

27.This is a typical case of “stooge accounts”.  It is correct to say and Mr Wang admits that he passed the information of all three accounts to an unknown person for remuneration.

28.Around March 2023, Mr Wang was persuaded by an unknown person via Wechat that he (Mr Wang)  could open the three subject bank accounts to engage in stock trading in Hong Kong.  The unknown person offered to meet and accompany him to do so.

29.On 5 May 2023, when they met at Futian Port, the unknown person further offered HK$3,000.00 for the control of the bank accounts.

30.Partly due to stupidity and momentary greed, Mr Wang received the said sum of HK$3,000.00 at Futian Port.  He understood that the accounts might be used for unlawful purposes.

31.Mr Li emphasized the following points:

(a)  Mr Wang’s role was simply opening, lending and selling his three subject bank accounts;

(b)  He did not handle or control the accounts by himself;

(c)  There is no evidence to show he knew or participated in the fraud which led victims to transmit funds to the accounts;

(d)  There was evidentiary support from PW1 to PW4 to say that a total amount of HK$3,817,300.00 was proceeds of fraud but not the rest;

(e)  There was no sophisticated modus operandi;

(f)  There was no evidence of organized criminal syndicate;

(g)  The active period of the accounts being no more than 2 months was not long;

(h)  Although this case involves cross-border element (Canadian dollars 30,000 (equivalent to about HK$170,000.00)  and Australian dollars 46,500 (equivalent to about HK$260,000.00), the overseas funds took up only a very small portion of the overall amount of funds; and

(i)  There is no dispute that Mr Wang came to Hong Kong specifically to open the subject accounts which later became the instrument of money laundering.

32.Mr Li does not object to the prosecution’s intention to furnish information and the associated request for enhanced sentences pursuant to OSCO, Cap 455.

33.However, as regards the scope of enhancement, Mr Li asked the court to bear in mind that the numbers of deception cases and money laundering cases have been decreasing since 2023 as per Table B of CIP Li Yiu Nam’s witness statement.

34.Mr Li invites the court to adopt a relatively low enhancement figure to reflect the situation.

35.Mr Wang regrets his wrongdoings and chooses to bear the legal consequences.

36.In HKSAR v Hsu Yu Yi [2010] 5 HKLRD 545, Cheung JA set out the amounts of money involved and the sentences passed in a number of “money laundering” cases.  The sentence starting point is 3 years or so where the “black money” involved is between HK$1 million and HK$2 million; 4 years or so where it is between HK$3 million and HK$6 million; and could be over 5 years where it is above HK$10 million.  HKSAR v Wan Kwok Keung [2012] 1 HKLRD 201 at para 15 observed and shared the same view.

37.Mr Li invites the court to consider the totality principle and bear in mind the total sum of HK$10,202,132.65 in the process of sentencing.

38.Mr Wang is deeply remorseful and has learnt a hard lesson.  He prays for a lenient sentence.

39.Mr Li submitted on behalf of Mr Wang a mitigation letter written in Chinese by Mr Wang himself.  The contents generally are that Mr Wang is regretful and will not re-offend; that he feels guilty about the victims; that his youngest elder sister is suffering from schizophrenia; that he has previously been a good Samaritan and has helped numerous people including his colleagues, friends, country folks and the citizens of Shenzhen.  Mr Wang asked for a lighter sentence so he may return home early to take care of his sick sister.

Sentence

40.I bear in mind the authorities referred to by Mr Li.

41.In the case of HKSAR v Boma [2012] 2 HKLRD 33, at para 38, the Court of Appeal emphasized that “the question of the amount of money laundered is not the be-all and end-all of a case but is a significant feature”.

42.The Court of Appeal further identified in para 40, the following significant features that should be taken into account when sentencing money laundering cases:

(1)  The nature of the predicate offence for generating “black money” and the sentence to be imposed;

(2)  The state of the offender’s knowledge;

(3)  Where the operation involved an international dimension, this would be a significant aggravating feature;

(4)  The sophistication of the offence, including the degree of planning;

(5)  Where the offence was committed by or on behalf of an organized criminal syndicate, this would be an aggravating feature;

(6)  Whether there was one transaction or many, and the length of time over which the offence was committed;

(7)  Whether the offender continued to launder funds after he had discovered the nature of the funds were proceeds of an offence or a serious offence was involved;

(8)  The role of the offender and the acts performed by him.

43.Mr Li has highlighted most if not all of these features as applied to the present case.  I would add that there were in total 65 deposits into and 132 withdrawals from the three bank accounts.

44.Mr Li also made the point that Mr Wang came to Hong Kong (on 5 May 2023)  from the Mainland specifically to open the three subject accounts which on the same day were sold off to the unknown person.  This is an aggravating factor.

45.Having weighed everything in the round, I will go no further than adopting 5 years’ imprisonment as the global starting point.

46.Mr Wang pleaded guilty to the charges in good time.  He is entitled to the full 1/3 sentencing discount.  I will grant Mr Wang an extra month off after the 1/3 for his clear record.  There are no other mitigating factors of weight to warrant another sentence reduction.

47.Prosecution asked for enhancement of sentence under OSCO, Cap 455, on two bases, namely, (i)  prevalence of the specified offence of Conspiracy to deal with property known or believed to represent proceeds of an indictable offence; and (ii)  the nature and extent of any harm, whether direct or indirect, caused to the community by recent occurrences of this specified offence.

48.For the purpose of showing the two bases, prosecution has, without objection from Mr Li, submitted the witness statement of CIP Li Yiu Nam dated 25 August 2026 (“the Statement”)  which deals with the general offence of money laundering rather than strictly the conspiracy offences of which Mr Wang has been convicted.  Mr Li confirmed he was not going to take any point about this difference.

49.Mr Li does not object to the enhancement of sentence but asked that a relatively low enhancement figure be adopted.

50.According to Table A on page 5 of the Statement, the total number of stooges to be arrested (ie those who assisted in money laundering activities many of whom had sold their accounts at financial institutions)  in the whole of 2026 (by extrapolation)  will stand at 6,336.  This compares with the corresponding historical figure of 5,335 in 2025.  It represents an unenviable increase of 18.8%.

51.I am satisfied the use of stooges in money laundering activities and by implication the money laundering offence itself (even if only suspected)  is still prevalent.

52.According to Table B on pages 6 and 7 of the Statement, the expected amount of reported monetary losses (including from overseas victims)  and of proceeds laundered locally both involving local stooge accounts in the whole of 2026 (by extrapolation)  will come to $2,445.63M.  This when compared with the corresponding historical figure in 2025 of $3,933.14M represents a drop of 37.8%.  Although a significant drop, the absolute figure for 2026 is still huge for all intents and purposes.

53.However, the harm to the community is not limited to reported losses to local victims.

54.According to para 18 of the Statement, the anti-money laundering regime in Hong Kong is hampered by the prevalence of stooges for money laundering activities in the following ways:-

(a)  The prevalence of stooge accounts (“PSA”)  interferes with the normal operation of the banking system, having a negative effect on the reputation of Hong Kong as a well-known international financial hub;

(b)  PSA forms multiple layers of “shields” concealing the identity of the masterminds behind, making it difficult, if not impossible, for police to identify the masterminds behind;

(c)  PSA substantially facilitates the commission of crimes and in turn leads to more crimes being committed, as the masterminds could easily get away from their criminal liability;

(d)  PSA makes money laundering easier, which allows culprits to make use of their ill-gotten gains to extend their sphere to engage in a wider range of illegal activities;

(e)  PSA means that law enforcement agencies have to put in more investigation efforts and resources; and

(f)  People with low income or less awareness of the consequences of selling their bank accounts are more likely to be lured by the culprits to take the risks of commission of crimes to surrender their accounts for monetary reward.

55.From the figures I recited above from Table B, and from what PSA can do to the community, I am satisfied that the harm to the community by recent occurrences of money laundering offence is still substantial.

56.I am of the view that the two bases upon which the prosecution relies for seeking sentence enhancement have been made out.  I rule that my power to enhance sentence under section 27(11)  of OSCO, Cap 455, is engaged; and I hereby invoke that power.

57.Regarding the extent of enhancement, I adjudge a 23.5% enhancement to be sufficient to act as an additional deterrence against Mr Wang and like-minded persons.

58.I will impose individual enhanced sentences for all charges and make an appropriate order to arrive at the final global sentence.

59.As an act of mercy, I will ignore the decimal places in the calculation of the sentences in terms of months.

(Mr Wang, please stand)

60.For Charge 1, the sentence is 35 months’ imprisonment.

61.For Charge 2, the sentence is 43 months’ imprisonment.

62.For Charge 3, the sentence is 40 months’ imprisonment.

63.I order that 2 months of the sentence on Charge 1, and 3 months of the sentence on Charge 3, are to run consecutively between themselves, and to run consecutively to the sentence on Charge 2, making a total sentence for Mr Wang of 48 months’ imprisonment.