The practice of loaning bank accounts has become increasingly common, offering individuals a quick way to earn extra income. Whether for grey market activities or outright scams, this trend raises significant ethical, legal, and financial concerns. The stakes vary depending on the account's purpose—ranging from long-term usage for gambling and grey market transactions to one-time use accounts for scams, which command even higher payouts. While the allure of easy money is strong, the hidden risks and consequences are profound.
Bank Accounts Rental Vs Buying Account : An Overview
Loaning a bank account typically involves granting temporary access to another person or entity, who then uses the account for specific transactions. This practice has two common categories:
Grey Market Usage (Rent):
Accounts are used for transactions such as collecting gambling funds or processing payments for advertisements targeting unregulated markets.
Bank accounts associated with online gambling may remain active for up to two years.
Individuals earn approximately US $125- 375 a month, as these accounts are often used for ongoing operations.
Scam-Related Usage (Buy):
Accounts are used as one-time conduits to receive and transfer illicit funds from victims of fraud -- these accounts will only be active between 1 to 7 days.
The first $10,000 illicit transactions are often attributed to government impersonation scams, as these scams are the easiest to detect and report. The remaining transactions are typically associated with various other types of scams.
Due to the high risk and critical role in scams, these accounts can earn their owners $450 to $750.
Scam-Related Usage (Buy) -- USDT:
Wallets associated with scams may remain active for up to 1 year.
Hot wallet address range from $100 to $300 per transaction
Cold wallet addresses range from $200 to $800 per transaction.
While grey market operations may appear less harmful than scams, both practices operate in legal and ethical grey areas, exposing account holders to significant risks.

The Mechanics and Risks of Grey Market Accounts
Grey market accounts are often used for purposes like:
Gambling Transactions: Serving as intermediaries for online betting platforms in regions where gambling is restricted.
Advertisement Payments: Processing payments for ads promoting semi-legal or unregulated products and services.
The Role of One-Time Use Accounts in Scams
One-time-use bank accounts are highly sought after by scam syndicates for their ability to facilitate fraud. These accounts are used to receive and move funds quickly, after which they are abandoned or closed. Typical uses include:
Collecting money from phishing, investment fraud, or fake online platform.
Rapidly transferring funds to obscure their origin.
To ensure the smooth operation of these schemes, criminal syndicates go to great lengths, even preparing scripts for account holders to use when questioned by authorities. This coaching allows the account holder to convincingly feign ignorance and avoid immediate charges, complicating investigations.
Common Responses from P2P Traders and Mules
When confronted, P2P traders or mules typically respond with:
1. Denial of Knowledge: Many claim they were unaware of the illicit nature of the transactions they facilitated.
Traders: "I didn’t know the money was illicit; I just executed the trade."
Mules: "I was told to transfer money as part of a legitimate job or favor."
Lack of Accountability: They may argue that they are not responsible for verifying the source of the funds or transactions.


Revealing the Dark Side: Inside the Operations Between Scam Centers and Money Laundering Syndicates
When victims request a bank account for payment from scam centers, a well-organized and efficient collaboration between the scam center and the money laundering syndicate is triggered. This system ensures the seamless transfer of illicit funds, underscoring the depth of their operations.
How the Process Works
1. Victim Request for Bank Account
When a victim requests a bank account for transferring money, the scam center immediately contacts its supervisor or accountant. These individuals coordinate with the money laundering syndicate to secure a usable bank account number
2. Verification by Money Laundering Syndicate
The syndicate takes about 10 minutes to verify the safety of the next available bank account. Once confirmed, they notify the scam center, ensuring the victim completes the transfer within a strict 30-minute window. If the victim fails to deposit within this period, a new bank account is provided to continue the operation.
Business Arrangements Between Scam Centers and Money Laundering Syndicates
The partnership between scam centers and laundering networks operates under two distinct models:
Shared Bank Account (拼车):
Multiple scam centers share a single bank account, regardless of the nationality of victims or type of scam.
Risk Level: High, as shared use increases the likelihood of detection and law enforcement intervention.
Exclusive Bank Account (专车):
A bank account is exclusively allocated to a specific scam company.
Conditions: The scam center must meet a minimum transfer target, often around $60,000. Failure to do so results in fines imposed by the syndicate.
Risk Level: Lower, as exclusive use minimizes exposure to law enforcement scrutiny.
The Checkout Process
Once funds are deposited into designated accounts, money laundering syndicates facilitate the payout to scam centers using two primary methods:
1. One Transaction, One Checkout (一单一结):
Each transaction is withdrawn individually.
Funds are converted and returned to the scam center, often via USDT, within two hours.
2. Daily Checkout:
Victims make transfers throughout the day, typically between 10 AM to 7 PM.
All funds are processed at the end of the day, with the scam center receiving their cut around 10-11 PM.
The "House of Money" (水库,水房)
After withdrawal, all illicit funds are moved to a secured location known as the "House of Money." This closed-off office is staffed by a separate team responsible for counting and organizing the money before it is redistributed or reinvested into criminal operations.
No Liability from the Syndicate
The money laundering syndicate explicitly disclaims responsibility for any losses incurred due to law enforcement actions, such as account seizures or funds being frozen. In such cases, the syndicate provides proof of seizure but offers no compensation to scam centers.
Once the illicit money has been laundered and integrated into the legitimate economy, it is no longer tied to its illicit origins. This lack of traceability means that victims cannot definitively prove that the stolen money belongs to them by law.
One of the biggest frustrations for victims of money laundering-related crimes is the inability to recover their stolen funds. After money is laundered, victims sometimes attempt to trace the funds to individuals involved in the process, such as peer-to-peer (P2P) traders or money mules. However, these individuals often claim ignorance of the illegal nature of the transactions, leaving victims at a dead end.
"Nobody, not even law enforcement, can catch us," they boast. "At best, they’ll catch the ones who withdraw the money at the ATM."
Why Money Mules Persist
A significant reason for the persistence of money mules is the lax enforcement of laws and regulations. In many jurisdictions, the penalties for loaning accounts are minimal, and the burden of proof for prosecuting individuals involved in such schemes is high. This creates an environment where:
Getting Away Is Easy: Many account holders face little to no consequences, especially when they claim ignorance or are coached by scam syndicates.
Low Risks Encourage Participation: The lack of stringent laws and enforcement emboldens individuals to take the risk for the promise of quick money.
Syndicates Thrive: Weak penalties and loopholes in the law allow money laundering networks to exploit mules repeatedly, perpetuating their operations.
This legal leniency enables a vicious cycle where mules play a critical role in supporting money laundering syndicates, allowing them to grow and adapt to new challenges.
Punishment of Money Mules in Southeast Asia vs. China
Money laundering and the use of money mules are global issues, but the way countries address these crimes varies significantly. Southeast Asia and China, regions with distinct legal systems and enforcement priorities, approach the punishment of money mules differently based on their legal frameworks and cultural contexts.
Southeast Asia's Approach
Singapore
Singapore adopts a stringent approach to financial crimes, including money laundering and money mule activities. Under the Corruption, Drug Trafficking, and Other Serious Crimes (Confiscation of Benefits) Act, money mules can face:
Up to 10 years of imprisonment.
Fines up to SGD 500,000 (USD 365,000).
For first-time offenders, the courts may impose lighter sentences if the mule can prove they acted without full knowledge of the crime. However, repeat offenders face harsher penalties.
Malaysia
In Malaysia, money mules are prosecuted under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLA).
Penalties include up to 15 years in prison.
Fines up to five times the value of the laundered funds or RM 5 million (approximately USD 1.2 million), whichever is higher.
Authorities have focused on public awareness campaigns to discourage individuals from unwitting participation.
Thailand
In Thailand, Anti-Money Laundering Act (AMLA): Under this act, individuals involved in money laundering activities, including money mules, can face imprisonment ranging from 1 to 10 years and fines between THB 20,000 (approximately USD 625) and THB 200,000 (approximately USD 6,250).
Recent Legislative Measures: In response to the increasing prevalence of mule accounts, the Thai government has introduced stricter penalties:
Facilitators and Advertisers: Individuals who open bank accounts or provide their personal information for use by others in illegal activities may face up to 3 years in prison, a maximum fine of THB 300,000 (approximately USD 9,375), or both.
On 7 November 2024, Thailand amended their new decree in push to combat scam and its accomplices. The law also prevents illegal money transfers by perpetrators using digital assets, especially illegal platforms for trading and exchanging digital assets abroad, including the transfer of digital assets between individuals related to perpetrators or online thieves.
China
China takes money laundering and the use of money mules very seriously, as these activities threaten the stability of its financial system. The country employs strict laws and severe punishments to deter such crimes. Below are examples of how China punishes money mules:
1. Harsh Prison Sentences
China's Criminal Law (Article 191) stipulates that individuals involved in money laundering can face imprisonment ranging from 3 to 10 years, along with heavy fines. For more severe cases involving large sums of money or organized networks, sentences can exceed 10 years.
Example:
In 2021, Chinese authorities arrested hundreds of individuals who acted as money mules in a cross-border money-laundering ring that funneled billions of yuan through cryptocurrency platforms. Many mules received sentences of 5 to 8 years, even if they claimed ignorance of the scheme.
2. Asset Seizures
Money mules often see their bank accounts frozen and their assets confiscated. This includes funds linked to illicit transactions, as well as any personal property acquired through illegal means.
Example:
In 2022, a group of money mules was caught transferring illicit funds for an overseas fraud syndicate. Along with prison terms, the mules had their cars, real estate, and bank balances seized by the government.
3. Public Blacklisting
China maintains a social credit system that tracks individual behaviors, including criminal activities. Money mules found guilty of laundering are often blacklisted, which can lead to:
Restrictions on travel (e.g., bans on buying train or plane tickets).
Denial of loans or access to financial services.
Loss of employment opportunities.
Example:
In a case involving fraudulent online lending platforms, dozens of mules were publicly blacklisted. They faced difficulties in opening bank accounts and finding housing.
4. Heavy Fines
Money mules are often ordered to pay hefty fines proportional to the amounts they helped launder. This financial penalty acts as an additional deterrent.
Example:
In 2020, a mule involved in laundering 50 million yuan ($7.2 million) was fined 5 million yuan ($720,000) alongside a 7-year prison sentence.
6. Targeted Crackdowns and Mass Arrests
China regularly conducts nationwide operations to target money mule networks. These crackdowns often result in large-scale arrests and coordinated prosecutions.
Example:
In 2021, the "Card Breaking Campaign" led to the arrest of over 80,000 individuals involved in selling bank accounts and acting as money mules. Many were sentenced to long prison terms, with repeat offenders facing even harsher punishments.
7. Community-Based Punishments
In some cases, especially in rural areas, local governments implement community-based punishments. These include public shaming or requiring offenders to perform community service after serving their legal penalties.
Example:
In a rural province, mules involved in aiding phone scam syndicates were paraded through the community as a warning to others. Such measures aim to dissuade others from participating in similar activities.
Conclusion
China’s zero-tolerance approach to money laundering and the use of money mules demonstrates the government’s commitment to financial integrity. By imposing severe punishments—ranging from prison sentences to public shaming—the country aims to deter potential offenders and dismantle laundering networks at their roots.
The fact that money launderers in China are now reportedly receiving commissions as high as 40% from scam center, a 15-20% increase compared to global or regional norms, highlights the rising demand for financial operatives who can navigate increasingly stringent anti-money laundering (AML) measures. This trend has significant implications for financial systems, regulatory frameworks, and law enforcement efforts.
The increased costs and risks associated with money laundering in China, coupled with higher commissions demanded by operatives, have reportedly driven Chinese owned scam companies to target foreigners instead. This trend highlights the adaptability of criminal enterprises and underscores the need for coordinated global action against money laundering.
"Chinese do not scam Chinese" - reflects an unspoken rule or ethos that has historically existed within some Chinese communities and scam networks.
Key Differences Between Southeast Asia and China
Severity of Punishments:
While both regions impose strict penalties, China tends to combine criminal penalties with public deterrence strategies like shaming campaigns.
Southeast Asian countries focus on proportional punishment, considering factors like intent and first-time offenses.
Enforcement Tactics:
China uses its extensive technological capabilities for tracking financial crimes, ensuring quick detection and prosecution.
Southeast Asian countries rely more on international cooperation and awareness campaigns due to varying levels of technological infrastructure.
Focus on Rehabilitation:
In Southeast Asia, there is a growing emphasis on financial literacy and preventive measures to reduce recruitment of money mules.
China, while focusing on deterrence, prioritizes eradicating organized networks over rehabilitation of individuals.
Conclusion
While Southeast Asia and China both treat money mules as critical players in the financial crime ecosystem, their approaches reflect broader differences in governance, legal systems, and enforcement priorities. Understanding these nuances highlights the importance of global cooperation in addressing money laundering and the exploitation of mules worldwide.
The Path Forward
To combat the misuse of bank accounts and reduce the prevalence of money mules, several steps must be taken:
1. Strengthening Laws and Penalties:
Introduce stricter penalties for individuals who knowingly loan their accounts for illicit activities.
Close legal loopholes that allow syndicates to manipulate and exploit mules.
2. Public Awareness:
Campaigns to educate individuals about the risks and consequences of loaning bank accounts.
Highlighting red flags, such as offers promising high returns for minimal effort.
3. Support Systems:
Providing financial education and alternative income opportunities for vulnerable groups targeted by scammers.
Strengthening social safety nets to reduce financial desperation.
Conclusion
To combat this growing issue, there is a compelling case for imposing harsher penalties on money mules. Money mules are often the final step in a laundering operation. They help obscure the trail of stolen funds, making it nearly impossible for authorities to trace the money back to its original source. Without mules, criminals would face significant challenges in cashing out their illicit gains or moving them across borders.
Money mules are a linchpin in the machinery of financial crime,