2 women jailed up to 4 years, 10 months in money laundering case involving HK$280M smuggled from mainland China

Two Hong Kong women have been sentenced to prison for over three years after being convicted of money laundering involving the transport of more than HK$280 million in cash from mainland China to Hong Kong between 2018 and 2019.

Luo Xiaoping was sentenced to four years and ten months by the District Court, while Xiang Yurong received a three-year prison sentence, according to local media reports.

The convictions followed a trial in which both defendants pleaded not guilty to four counts of money laundering.

Smuggling Operations and Methods

The court heard that the two women acted as conduits for moving illicit funds across the border. Luo Xiaoping was accused of smuggling approximately HK$270 million in cash. This involved more than 100 separate instances in which she carried more than HK$1 million per trip through border checkpoints.

Xiang Yurong operated with a different frequency and volume. During the period of the offense, Xiang brought money into Hong Kong an average of 10 times per month. On these trips, she carried between 200,000 and 300,000 RMB each time, occasionally transporting cash into Hong Kong up to three times in a single day.

Together, the two women handled a total of over HK$280 million in illicit cash.

Court Findings and Judicial Commentary

District Court Deputy Judge Lily Wong acknowledged that Xiang and Luo functioned as mules in the operation. However, the judge stated that their actions had an inevitable negative impact on the financial systems of both Hong Kong and mainland China.

The defense attempted to argue that there had been a delay in the prosecution. They contended that customs officers could have intervened and stopped Luo much earlier, rather than taking action only after she had successfully completed numerous cash transports into Hong Kong.

Judge Wong rejected this argument. As reported by Ming Pao, the judge described Luo as acting with a gambler’s mindset and stated that the crimes were committed out of pure greed.

Legal Framework and Enforcement

The defendants were arrested in September 2019, though they were not formally charged until April 2023.

Under the Organized and Serious Crimes Ordinance, the act of money laundering or dealing with property known or believed to represent proceeds of indictable offence carries a maximum penalty of 14 years’ imprisonment and a fine of HK$5 million.

In a statement released on May 7, 2026, the Hong Kong Customs and Excise Department noted that this case represents the first money laundering conviction involving travellers transporting large amounts of cash-related items across the border since a specific ordinance took effect.

The Cross-boundary Movement of Physical Currency and Bearer Negotiable Instruments Ordinance, which came into effect in July 2018, requires any individual carrying more than HK$120,000 in cash into Hong Kong to declare the sum to customs officers.