image

Corruption in China

Australia returns cash to China from money laundering swoops

PUBLISHED : Tuesday, 26 September, 2017, 11:28am
UPDATED : Tuesday, 26 September, 2017, 10:32pm

Australia has returned about A$215,000 (US$170,000) to China in funds it has seized from money laundering cases as the two countries agreed on Tuesday to strengthen efforts to crack down on financial crime.

Australia has been working with China’s “Operation Fox Hunt” to snare suspected corrupt officials who have fled overseas or hidden assets offshore. A handful of the 100 top suspects wanted by Beijing are living in Australia.

Australian Federal Police Commissioner Andrew Colvin said the payment showed that Australia was a “hostile environment for criminals seeking to hide their illegally obtained assets”.

However, the returned sum is tiny compared with the A$4.8 billion in Chinese direct investment into Australia in 2016.

One of China’s 100 most wanted corruption fugitives gives himself up

Colvin was in Beijing for talks with the Ministry of Public Security.

The two countries have set up a working group to combat financial crime and money laundering and track down assets linked to the proceeds of crime in both countries. Australian police said the group was the first of its kind with China and would extend the reach of Fox Hunt.

They also plan to formalise future cooperation on a range of crimes, including terrorism, that could affect security in both countries.

China outbound investment has dropped this year as Beijing has clamped down on capital outflows, looking to curb “irrational” investment in property and other sectors.

Australia is among the favoured destinations for Chinese buying housing and commercial property offshore.