HK$1.39B IN CRIMINAL PROCEEDS FROZEN

According to the Hong Kong Department of Justice “Prosecutions Hong Kong 2012” report, there is little dispute that one of the most effective ways to curb the expansion of criminal enterprises and terrorist financing operations is to deprive criminals of their illicit profits. These profits are the financial lifeblood that sustains their crimes.

As a major international financial centre alongside London, New York and Tokyo, Hong Kong has a free economy which allows the smooth, speedy transfer of funds within a safe, comprehensive financial and legal framework. Commercial enterprises setting up business in Hong Kong can benefit from the simple tax system, low tax rates, reliable legal system and unlimited business potential provided by the second largest economy in the world.

One undesirable yet unavoidable concomitant reality is that money laundering activities can never be utterly eradicated in a free economy of this scale. The question of whether money laundering activity is rampant in Hong Kong should be viewed with this backdrop in mind.

Last year the city froze HK$1.39 billion in crime proceeds under court orders – the largest in three years – with the government confiscating HK$50 million, the Department of Justice said…HK_DOJ_2012_Articles_19.8.13