Two Taiwanese men were jailed on Wednesday for 28 and 30 months in Hong Kong’s first ever cash-smuggling case detected by customs, involving some HK$180 million.

Freelancer Lu Hung-an, 53, and businessman Chao Shu-min, 49 – both holders of a Taiwanese passport – pleaded guilty to a count of conspiracy to commit money laundering. Chao also admitted to another count of importing cash without making declarations.

At the District Court, judge Josiah Lam Wai-kuen said the amount was not small and this case involved cross-border elements. Yet, there was no evidence that showed the duo were linked to predicate money laundering offenses of a more serious nature.

Lam pointed out that Chao assumed greater criminal liability for the instructions he gave Lu, who Lam also said actively took part in the crime.

Acknowledging their Taiwanese identity and the tough time of serving their sentence in Hong Kong away from home, Lam jailed Lu for 28 months and Chao for 30 months.

The court heard that on February 17 last year, customs intercepted a package posted from Korea to a unit at Mow Shing Centre in Tai Kok Tsui, which contained about $4.5 million New Taiwan dollars (~HK$1.07 million) hidden in four magazines.

Officers then went undercover, disguised as the couriers, and arrested Lu who signed for and received the package. Chao was later arrested with officers seizing about HK$390,000 from him.

Under caution, Lu admitted he had received similar packages about a dozen of times since December 2022 after being informed by Chao. Lu would then exchange the money into Hong Kong dollars and deliver it to unknown individuals upon Chao’s instructions.

Chao told customs that the sum was the proceeds made by a Korean friend from Bitcoin investments. The Korean owed Chao money and repaid Chao by mailing him the cash. Chao also said he didn’t know the Korean’s name and they mostly contacted eachother on WeChat.

Further investigation by customs revealed that the duo performed 35 transactions at the currency exchange store between December 2022 and February 2023, handling about $62.3 million New Taiwan dollars, 20 million Japanese yen and about HK$390,000.

Sources: The Standard