Friday, November 20, 2015

China Raided Underground Banking Ring Worth $64 billion

China underground bank, banking ring, Money Laundering

Chinese police has raided the country's largest underground banking ring that involves transactions totaling $64 billion. Those 100 suspects that were arrested are from 8 gangs. Chinese officials believes that the gangs were thought to be linked to a ringleader who allegedly operated multiple shell companies in Hong Kong engaged in money laundering and foreign exchange transactions.

China has strict capital controls, citizens can only move around $50,000 out of the country each year. This restrictions has resulted for gangs to launder money through art pieces or through casinos in southern China which helps citizens to transfer funds in other countries. While some of that money comes from honest earnings, a portion is believed to have been obtained via corruption or fraud.

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