wmlro.com: HK's ICAC charges woman with using derivatives as laundering vehicle
Demonstrating that the suggestion that complex financial instruments are low risk for laundering is entirely bogus, Hong Kong's Independent Commission Against Corruption has charged Madam Cheng Yuen-Yi with laundering offences.
40 year old Cheng has been charged for her alleged role in laundering over HKD100 million in crime proceeds in relation to the trading of derivative warrants. There are 17 counts of dealing with property known or believed to represent the proceeds of an indictable offence, contrary to Section 25(1) of the Organised and Serious Crimes Ordinance (OSCO). Charges were laid in the Eastern Magistracy and she will be committed to the District Court for trial.
The case arose from a corruption complaint in relation to the trading of derivative warrants. Subsequent ICAC enquiries revealed the above OSCO offences.
One of the charges alleged that between May 2005 and May 2008, the defendant dealt with cash in a total amount exceeding HKD34.6 million, knowing that the money, in whole or in part, directly or indirectly, represented proceeds of an indictable offence. The cash was said to have been placed in a safe deposit box at a bank. Hong Kong law provides for wilful blindness to be alleged by the prosecution.
The remaining 16 charges alleged that between January 2006 and July 2008, the defendant dealt with sums of money totalling more than HKD66.6 million, knowing that the monies, in whole or in part, directly or indirectly, represented proceeds of an indictable offence.
The monies were said to have been deposited into the defendant's personal accounts, her joint accounts and accounts of four companies at six banks.
The defendant was granted cash bail of HKD1 million. She was also ordered not to leave Hong Kong, surrender her travel documents, and not to interfere with prosecution witnesses.
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