Sammy Gecsoyler
Seven individuals have been sentenced for their involvement in a sophisticated £55 million money-laundering operation aimed at international students in the UK who were attempting to bypass Chinese foreign currency controls. The group, which operated from 2020 to 2023, was involved in illegal transactions that enabled students to transfer large sums of money out of China without complying with government limits.
Four members of the gang, including three men and one woman, were sentenced on Monday at Snaresbrook Crown Court for various money-laundering offences. The other three members had already been sentenced in June, with prison terms ranging from 11 months to 12 years.
Chinese nationals are restricted to transferring no more than $50,000 (£38,000) abroad each year for personal use, requiring them to process all transactions through official foreign exchange accounts at Chinese banks. To circumvent this rule, many have turned to “underground banking,” a method that has been increasingly prevalent within the Chinese diaspora, according to the National Crime Agency (NCA).
The laundering operation came to light when officers in Stoke Newington, north London, uncovered the £55 million that had been processed through Chinese underground banking between February 2020 and June 2023. In December 2022, the authorities raided two addresses in Canary Wharf and seized nearly £500,000 in cash and assets, including more than £104,000 hidden in a wardrobe at the home of Xiaoyu Shu (29) and Yin Ying Wang (28).
Shu and Wang were using a Chinese messaging app to facilitate currency exchanges, selling British pounds to Chinese students seeking to circumvent the exchange limit. The duo was tasked with collecting large sums of money—sometimes as much as £250,000 at a time—without knowing the identities of the students involved. They were also required to photograph a £5 banknote, including its serial number, as part of the transaction process, creating a layer of anonymity for both parties.
Further investigation led officers to discover that Peng Liu (28) and Ang Li (26), both from Canary Wharf, were running an unregistered money service business, assisting with the laundering operation. In June 2023, their address was raided, and £14,600 was seized along with cash counting machines.
Qiji Wang (29) from Manchester was identified as the head of the operation. Officers found numerous mobile phones, computers, bank cards in other people’s names, and additional cash counting machines at his home. Ruolan Chen (28), also based in Manchester, was involved in operating the unregistered money service business as well.
The operation was uncovered after a three-year investigation, led by specialist officers from the Metropolitan Police’s proactive crime team, working in collaboration with other authorities. DC Zach Rowe commented on the scale of the operation, emphasizing that the disruption of this complex money-laundering ring will prevent further illegal activities, including human trafficking, prostitution, and drug trafficking.
This successful prosecution has dealt a significant blow to the operation, ensuring that those involved will not profit from their criminal activities.