Gyeongbuk Police Uncover Systematic Money Laundering Scheme
Using Shell Company Accounts, Borrowed-Name Bank Accounts, and Burner Phones
A group involved in laundering large sums of money generated from illegal gambling websites has been apprehended by the police.
They are accused of laundering a total of 310 billion won over a period of 10 months through accounts under shell companies and collecting about 1.1 billion won in fees.
On June 25, the Criminal Mobile Unit of the Gyeongbuk Provincial Police Agency announced that it had arrested eight individuals, including the ringleader, identified as Mr. A, who orchestrated the laundering of gambling funds. Of those arrested, three have been taken into custody.
The group contacted gambling site operators via the Telegram messenger app and, from September of last year until June of this year, used an apartment in Busan as their office to carry out the laundering of gambling proceeds.
They laundered a total of 310 billion won in illegal funds by dispersing money deposited into borrowed-name bank accounts into accounts under shell companies. During this process, they allegedly collected approximately 1.153 billion won in fees.
The police stated that the group operated systematically, working in 12-hour shifts to maintain continuous operations. To avoid detection, all communication was conducted exclusively through Telegram, and they employed meticulous methods such as relocating their office every few months.
The case came to light when one member of the group, identified as Mr. B, was detected by the police for providing borrowed-name bank accounts.
The police confiscated 395 million won in cash, believed to be criminal proceeds, as well as high-end luxury watches from Mr. B. At the operation's base, they also seized around 100 borrowed-name bank accounts and burner phones.
An official from the Gyeongbuk Provincial Police Agency stated, "Illegal gambling websites, related money laundering, and voice phishing are serious social crimes that threaten the livelihoods of ordinary citizens. We will continue to conduct intensive crackdowns and thorough investigations on similar crimes in the future."
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