Chinese Authorities Arrest 450 in Underground Banking Crackdown
- With capital outflows on the rise, Chinese authorities have arrested 450 in a new initiative to curb the practice.
The flow of capital out of countries or jurisdictions has always been a contentious issue, with China arresting upwards of 450 suspects after cracking down on underground banks or illegal offshore companies, according to a recent Bloomberg report.
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Underground banking involves the transfer of money through informal channels rather than formal banking – the practice is a recognized method by which legitimate remittances from overseas workers are transferred. However, underground banking has also long been regarded as a conduit for Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term.
Underground Banking in Focus
Chinese authorities have already begun a crackdown on using offshore companies in a bid to control and ultimately curb illegal capital flows. Presently, the cases involved almost $30 billion of transactions, according to the Chinese Ministry of Public Security, with 450 suspects facing recourse. One of the main impetuses for outflows of capital has been the price of the yuan, which could rekindle should the price of the currency weaken.
Outflows have been exiting China in the billions over the past few months, reaching $55 billion in July – still this figure seems relatively tame compared to $171 billion back in December 2015.
To date, a number of agencies and organizations including the People’s Bank of China (PBoC) and the State Administration of Foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (FX) are actively involved in the initiative against illicit flows, which portends the extended use of crackdowns moving forward.
The flow of capital out of countries or jurisdictions has always been a contentious issue, with China arresting upwards of 450 suspects after cracking down on underground banks or illegal offshore companies, according to a recent Bloomberg report.
Take the lead from today’s leaders. FM London Summit, 14-15 November, 2016. Register here!
Underground banking involves the transfer of money through informal channels rather than formal banking – the practice is a recognized method by which legitimate remittances from overseas workers are transferred. However, underground banking has also long been regarded as a conduit for Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term.
Underground Banking in Focus
Chinese authorities have already begun a crackdown on using offshore companies in a bid to control and ultimately curb illegal capital flows. Presently, the cases involved almost $30 billion of transactions, according to the Chinese Ministry of Public Security, with 450 suspects facing recourse. One of the main impetuses for outflows of capital has been the price of the yuan, which could rekindle should the price of the currency weaken.
Outflows have been exiting China in the billions over the past few months, reaching $55 billion in July – still this figure seems relatively tame compared to $171 billion back in December 2015.
To date, a number of agencies and organizations including the People’s Bank of China (PBoC) and the State Administration of Foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (FX) are actively involved in the initiative against illicit flows, which portends the extended use of crackdowns moving forward.