In a collaborative effort, Indian and Hong Kong customs have cracked down on a sophisticated network orchestrating money-laundering schemes linked to the import of synthetic diamonds masquerading as genuine ones. The Ministry of Finance hails this joint operation as an exemplary case of bilateral cooperation and information exchange.
Led by the Indian Directorate of Revenue Intelligence (DRI), the investigation revealed a multi-faceted fraud scheme that surpassed the misrepresentation of synthetic diamonds. Arrests were made in both regions, with four individuals apprehended in each jurisdiction.
The DRI’s initial detection of the scam involving inflated values of synthetic diamond imports uncovered a web of deceit facilitating fund remittances to Hong Kong. Subsequently, it became evident that this deceptive trade served as a cover for an expansive money-laundering operation.
Remarkably, the investigation highlighted a significant dissonance in remittance patterns. While a substantial portion of the inflated import values seamlessly exited India through official banking channels, the remittances received for exports were marginal, hovering around 0.2%. This stark contrast underscores the trade’s primary purpose as a conduit for large-scale money laundering.
This collaborative crackdown showcases the effectiveness of international cooperation in combating cross-border financial crimes, setting a precedent for future joint efforts against illicit operations.
