Money laundering is the process of transforming money derived from illegal activity, or dirty money, into funds appearing to originate from a legal source. As dirty money cannot be easily used or spent, criminals often use unscrupulous ways to clean, or launder, this money. Common examples include opening of cash-reliant businesses, investing in real estate, gambling in casinos, and depositing funds through stooge accounts.

Criminals entice victims into lending or selling their bank accounts, or using their personal information to open bank accounts, by offering them ‘quick and easy’ money in return. These accounts are referred to as stooge accounts. 

Money obtained from illegal operations such as romance scams and shopping fraud is then deposited into these accounts to be withdrawn or further transferred to various other accounts and holdings, making the proceeds harder to trace. Scammers often connect with their targets through instant messaging apps, social media platforms, or even through the victims’ friends or acquaintances who are already stooge account holders.

According to the Hong Kong government, there were over 7,700 individuals arrested as stooge account holders in 2024; there have also been increases in sentencing for related cases. By the end of last year, the sentences of some stooge account holders had been increased by 10% to over 30% successfully, resulting in 21 to 75 months of imprisonment. Anyone convicted of dealing with property known to represent proceeds of an indictable offence could face a fine of up to HK$5 million and 14 years of imprisonment.

According to the Hong Kong police, during a 2024 press briefing on the matter, a local syndicate targeted migrant domestic workers (MDWs), luring them to create stooge accounts by offering monetary rewards of HKD 1,000 to HKD 2,500.  

Domestic workers are vulnerable targets for the opening of stooge accounts, and several of them have been arrested and charged with a criminal offence over the years. They are enticed to disclose their Hong Kong ID numbers and personal information used to open bank accounts, with monetary rewards ranging from as little as $1000 to tens of thousands of dollars, depending on the amount being laundered or the number of accounts being opened.

Most MDWs come to Hong Kong to seek better opportunities for themselves and their families, so it is unfortunate when some fall prey to these syndicates, and all their hard work, along with their reputation, is replaced by regret and a criminal record. In one of the police operations last year, 14 domestic workers were arrested on suspicion of providing stooge bank accounts to launder more than HKD 10 million. Aside from the domestic workers, 6 local men were arrested for conspiring to commit money laundering in connection with a series of deception cases.

Remember, using your account for aiding criminals to transfer their money can lead to very serious legal consequences; even if you are not directly involved in the fraud, lending or selling your bank account can make you an accomplice or an accessory to the crime.

Being imprisoned and deported with a criminal record is not worth the risk of colluding with scammers to open stooge accounts, so we need to be vigilant against suspicious activity. Be cautious of any offers that seem too good to be true, especially when you are offered money in exchange for personal information, even if the person making the offer is a friend or someone you know. 

Report any illegal activity and save emails, messages, or other evidence of attempted stooge account recruitment to stamp out this crime. Contact your bank immediately if you suspect or notice any unusual activity. You can also consult the Anti-Deception Coordination Centre (ADCC) website for more information about stooge accounts, where you’ll also find updates about the latest scams and fraudulent activities.