Integrity Focus

An owner of an asset management company was charged by the ICAC yesterday (June 12) for allegedly laundering crime proceeds of about $50 million through a number of companies and individuals.

Xiao Rui, 35, an owner of Augustine Holdings Limited (AHL), faces two counts of dealing with property known or believed to represent proceeds of indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance. He was released on ICAC bail, pending his appearance at the Eastern Magistrates’ Courts tomorrow (June 14) for mention.

The offences took place between March 2016 and November 2023. At the material time, the defendant and two other persons jointly set up AHL. The company was engaged in asset management business and had three subsidiaries. In 2016, the defendant requested one of the AHL owners who was familiar with the operation of underground money changers to assist him in remitting money from the Mainland to Hong Kong.

The charges allege that the defendant dealt with 34 sums totalling about $50 million deposited to his two personal bank accounts by 12 companies and 11 persons, knowing or having reasonable grounds to believe that the sums in whole or in part directly or indirectly represented any person’s proceeds of indictable offence.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that the 12 companies and 11 persons concerned had no business dealings with AHL and its subsidiaries, and were not their customers.

The relevant investigation is continuing, the ICAC does not rule out further prosecution.