China Cracked down $64 Billion ‘Underground Banking’ Money Laundering Activities And Illegal Transfers


Currently, china is boosting efforts to fight corruption and to curb capital out flow. From the news, Chinese officials are said to have cracked down the country’s biggest-ever underground bank which handled illegal foreign exchange transactions worth 410 billion yuan ($64 billion) –report  by People’s Daily

According to Bloomberg, so far more than 370 people have been arrested and other are facing lawsuits and criminal charges. The Chinese authorities started the operation of raiding underground banks in April. Since then, over 170 cases underground banking and money laundering activities and illegal transfers  totaling more than 800 billion yuan ($125.34 billion) have been uncovered. So far . Police have shut down 37 banks. More than 300o bank accounts a´have been frozen. (Source-RT)

The Genesis?  The case was traced to one leader of the Zhejiang network was a man named Zhao Mouyi, who transferred over 100 billion yuan overseas using 850 different bank accounts and a dozen Hong Kong front companies. It is reported that police took nearly a year to sort through over 1.3 million suspicious transactions. (Source-Star Tribune)

Apparently, the Chinese citizens are officially limited to converting $50,000 of yuan per year! So how do the Chinese send billions abroad  for activities such as buying homes? Get the details on China’s Money Exodus here

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