By AML Intelligence Correspondents
POLICE in London have broken up a sophisticated international network of money laundering via Chinese underground banking.
Metropolitan Police detectives said more than Stg£55 million had been laundered by the group between February 2020 and June 2023.
Increasing concerns around underground banking first led detectives based at Stoke Newington station in London to begin investigating the group.
In December 2022, officers raided and address belonging to Xiaoyu Shu, 29 (13.09.94), and Yin Ying Wang, 28 (28.10.95), both of Biscayne Avenue, Canary Wharf where they found more than £104,000 in a carrier bag hidden in a wardrobe.
While searching the residence of Yunchen Huang, 28 (27.09.95), of Biscayne Avenue, Canary Wharf detectives found multiple cash counting machines and money bags were discovered.
In total police seized almost £500,000 in assets from the group.
Specialist officers then undertook comprehensive analysis of Shu and Huang’s mobile phones, revealing that the pair were using a Chinese messaging app to sell British pounds to university students to circumnavigate foreign currency controls which limits the amount of cash that can be taken out of China per year.
The messages also identified that Shu and Huang were working for a person with the user handle ‘There is a Big Sun in the Sky.’ This person arranged for the pair to collect large amounts of cash, sometimes as large as a quarter of a million pounds at a time.
Shu and Huang were not told the identities of those they collected cash from, and were instructed to take a photo of a £5 bank note, including the unique serial number. This was then passed onto the courier allowing the interaction to take place without either party knowing the identity of the other.
This was done by the group to prevent those in the chain giving information to police if they were arrested.
Chinese citizens cannot transfer more than $50,000 (£38,000) for personal purposes out of the country a year. To regulate this, citizens are required to process all transactions through a foreign exchange account opened with a Chinese bank account.
This can be circumvented by using underground banking. This was highlighted in a 2019 report from the NCA which the method was probably “widespread among the Chinese diaspora in the UK”.
Officers also identified that Peng Liu, 28 (27.03.96), and Ang Li, 26 (12.06.98), of Peninsula Square, Canary Wharf, were assisting the group by operating an unregistered money business. When officers searched their address in Peninsular Square, Canary Wharf, in June 2023 they located counting machines and £14,600.
Officers were then able to identify that Qiji Wang, 29 (06.12.94), of Left Bank, Manchester, was the head of the group and responsible for the handle ‘There is a Big Sun in the Sky.’ When searching his address in Manchester, they discovered numerous mobile phones, computers, bank cards in others’ names and a cash counting machine.
These mobile phones and computers were forensically searched by officers and included comprehensive ledgers of each consignment from February 2020 – June 2023, allowing the officers to value the earnings of the operation at over £55 million.
Four people – three men and one woman – have now been sentenced at Snaresbrook Crown Court for a range of money laundering offences. Three others were previously sentenced at Snaresbrook Crown Court on Friday, 14 June.
The seven people were sentenced to a total of 24 years and 11 months between them. Officers said the ring was uncovered through data analysis and intelligence provided by detectives.
Today (Tuesday) DC Zach Rowe, of the Stoke Newington Proactive Crime Team, said: “Thanks to the hard work and perseverance of highly skilled officers in the Met, we have been able to disrupt a sophisticated economic crime operation. The sheer scale of this laundering will generate crimes such as illegal drug supply, prostitution, human trafficking and more.
“This verdict and the lengthy three-year investigation that led to it, demonstrates that we’ll leave no stone unturned in our pursuit to catch criminals who look to enjoy the proceeds of illicit funds – no matter how complex the case.”
Benn Maguire, lead counsel from QEB Hollis Whiteman, said: “The assiduous and relentless commitment of DC Rowe and his team, to investigating this case, has resulted in dismantling a professional gang of international money launderers. The gang laundered vast sums of cash (in excess of £55 million) on behalf of those involved in organised crime.
“This successful prosecution has eviscerated the criminal operation, preventing those involved in crime from profiting from their wrongdoing.”
Convictions
On Monday, 19 August at Snaresbrook Crown Court:
- Qiji Wang, 29 (06.12.94), of Left Bank, Manchester, was sentenced to 12 years’ imprisonment for conspiracy to money launder and operating an unregistered money service business.
- Xiaoyu Shu, 29 (13.09.94), of Biscayne Avenue, Canary Wharf, was sentenced to three years and eight months’ imprisonment for conspiracy to money launder, operating an unregistered currency exchange and possession of criminal property.
- Yunchen Huang, 28 (27.09.95), of Biscayne Avenue, Canary Wharf, was sentenced to three years and four months’ imprisonment for conspiracy to money launder, operating an unregistered currency exchange and possession of criminal property.
- Ruolan Chen, 28 (21.08.96), of Left Bank, Manchester, was sentenced to two years’ imprisonment for operating an unregistered money service business.
On Friday, 14 June at Snaresbrook Crown Court:
- Peng Liu, 28 (27.03.96), of Peninsula Square, Canary Wharf, was sentenced to 18 months’ imprisonment for acquiring and possessing criminal property.
- Ang Li, 26 (12.06.98), of Peninsula Square, Canary Wharf, was sentenced to 18 months’ imprisonment for operating an unregistered money service business and possession of criminal property.
- Yin Ying Wang, 28 (28.10.95), of Biscayne Avenue, Canary Wharf, was sentenced to 11 months’ imprisonment for possession of criminal property.
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