HKSAR v. SZE CHUN LAM

DCCC 486/2023

[2025] HKDC 2033

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

CRIMINAL CASE NO. 486 OF 2023

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REASONS FOR SENTENCE

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1.  There are 10 defendants in this case facing various charges including Conspiracy to falsely imprison and Conspiracy to deal with property known or believed to represent proceeds of an indictable offence. As some defendants pleaded guilty at earlier stage, they had been dealt with separately by other judges.

2.  This Reasons for Sentence only concerns D8.  D8 is charged with one count of Conspiracy to deal with property known or believed to represent proceeds of an indictable offence[1] (Charge 3).  Originally D8 pleaded not guilty to the charge but at the beginning of the trial he changed his plea.  After pleaded guilty to Charge 3 and admitted the summary of facts, D8 was convicted accordingly.

Summary of Facts

3.  The facts of this case had been set out extensively in two other Reasons for Sentence and therefore I will not repeat the same here.  In gist, this case involved a syndicate which recruited people who were willing to surrender their bank accounts for monetary reward.  The people who surrendered their bank accounts were at first asked to stay in hotel rooms but later they were detained against their will for several days.

4.  At the material times, D8 acted as one of the recruiters of the syndicate and recruited a friend who was willing to surrender his bank accounts to the syndicate for money laundering purpose.  Charge 3 involves two bank accounts, namely, one account at the Bank of China (Hong Kong) Limited (“the BoC account”) and one account at the Hongkong and Shanghai Banking Corporation Limited (“the HSBC account”).     

5.  Concerning the BoC account, between 24 and 26 March 2022, there were 70 deposits in the total sum of HK$1,949,440 and 62 withdrawals in the total sum of HK$1,949,400.06.  All withdrawals were made on the same day after the same amounts were deposited into the account.

6.  Concerning the HSBC account, between 23 and 28 March 2022, there were 3 deposits in the total sum of HK$88,000 and 6 withdrawals in the same total amount.  All withdrawals were made on the same day or within a few days after the same amounts were deposited into the account.

7.  On 28 April 2022, D8 was arrested by the Police.  Under caution, D8 said he introduced a person who was willing to sell his bank account to someone of the syndicate.

8.  D8 now admits, at the material times he conspired with others, to deal with property, namely, a total sum of HK$1,949,440 in the BoC account and a total sum of HK$88,000 in the HSBC account, knowing or having reasonable grounds to believe that property, in whole or in part directly or indirectly represented proceeds of an indictable offence.

Mitigation

9.  D8 is 23 years of age and single.  He was born locally and received education up to Form 6.  In 2024, D8 obtained a Higher Diploma in Nursing.  He currently works as a waiter earning around HK$10,000 per month.  D8 lives with his parents but unfortunately his mother is suffering from cancer and presently undergoing chemotherapy.  D8 has a stable girlfriend for 4 years and they plan to get married once this matter is over.  He is a person of clear record.

10.  Defence submitted that D8 is genuinely remorseful.  Concerning the offence, it was submitted that there is no evidence to show that D8 knew what the predicate offence was and his involvement is only limited to recruiting people to the syndicate.  Further, there is no international element in this case.  Lastly, Defence urged the court to consider all the circumstances and impose a lenient sentence.

11.  As to the Prosecution’s application for enhancement of sentence, Defence raised no objection but asked the court to adopt a lower percentage of enhancement.

Sentencing Consideration

12.  There is no need to emphasize that money laundering is a very serious offence.  Not only does it encourage criminal activities indirectly, but it also helps criminals to legitimize the proceeds of crime.  The Court of Appeal in cases like HKSAR v Hsu Yu Yi[2], HKSAR v Wan Kwok Keung[3] and HKSAR v Boma[4] has already set out the sentencing principles for this offence.  The factors to be taken into account are:

(a) the amount of money involved;

(b) the level of participation of the defendant;

(c) the nature of the predicate offence;

(d) the defendant’s knowledge of the nature of the predicate offence;

(e) whether there is any international element;

(f) the sophistication of the offence; and

(g) duration of the offence.

13.  The Court of Appeal repeatedly said there is no guideline for this offence.  However, it was suggested in Wan Kwok Keung that if the “black money” involved is between HK$1 million and HK$2 million, the sentencing starting point could be about 3 years[5].

14.  Based on the facts admitted by D8, the court is prepared to accept that he did not have any knowledge of the predicate offence.  However, as a recruiter, his level of participation cannot be described as the lowest.  The amount of money involved in the charge is about HK$2 million.  It certainly is not a small amount but it is not particularly large in this kind of cases. There is no evidence that this case involved any international element. 

15.  The court also considered the personal background of D8.  He is a first offender and showed his remorse by pleading guilty to the charge.  I also note that another court adopted 30 months as starting point for Charge 3 for other defendants.

16.  Considered all circumstances, I adopt 30 months as the starting point for Charge 3.  D8 pleaded guilty to the charge after the case was set down for trial but before the trial started.  I am of the view that a 25% discount is suitable in these circumstances.

17.  Prosecution has furnished with the court a witness statement dated 5 November 2025 of Chief Inspector LI Yiu-nam of the Money Laundering and Terrorist Financing Risk Assessment of the Financial Intelligence and Investigation Bureau, Hong Kong Police Force.  The information provided by Chief Inspector LI shows the prevalence of money laundering offence in recent years in Hong Kong and the extent of harm caused to the community. 

18.  Considered all the information I am satisfied that enhancement of sentence is appropriate in this case.  Having regard to the circumstances of the case, I am of the view that 25% enhancement is appropriate.

19.  To conclude, after giving 25% discount for the guilty plea and enhancing by about 25%, D8 is sentenced to 28 months’ imprisonment.