Court of Final Appeal clarifies the requisite mental element of money laundering offence in Hong Kong

At trial, the defendant gave evidence which he claimed had affected his belief about the nature of the money in the account in support of his defence that he did not believe that the money represented proceeds of a crime. The District Court found him guilty of the money laundering offence on the basis that his so-called belief was ill-founded and he turned a blind eye to obvious suspicion. The defendant was sentenced to imprisonment for 3 years and 9 months. This decision serves to remind individuals and businesses who process money to remain vigilant in detecting signs of illegality. Whilst one might genuinely believe property he deals with is clean, such a belief will be tested against an objective reasonableness standard. Where there are signs of illegality and the failure to conduct proper due diligence, he may be found guilty of the money laundering offence.