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Bank of China (BOC)

Bank in Vanuatu suspected of fraud

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SCMP Reporter

IN its battle against fraud attempts from overseas, the People's Bank of China (PBOC), the central bank, has pinpointed a bank said to be operating in the southern Pacific.

A warning about its activities has been issued in a circular to subordinate financial institutions all over the country.

Chinese sources said the circular was relayed to lower-level banking institutions last week after the central bank became suspicious of the overseas bank, which is believed to have subsidiaries in Hong Kong.

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An infrastructure project in Fujian province costing about US$100 million to build a 4,000-metre bridge was announced by the company this year.

It is understood that the bank had recently launched business promotion trips to several cities in China, offering syndicated loans and other kinds of co-operation.

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The PBOC said the source of money and the company's way of doing business were suspicious.

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