Police crackdown in southern China busts underground banks handling US$35b: Xinhua
At least 350 people suspected of involvement in 140 cases of underground banking and money laundering have been arrested in Guangdong this year
Police in southern China have busted underground banks that handled 230 billion yuan (US$35 billion) in illegal money transfers this year, Xinhua reported, underscoring the challenges Beijing faces in blocking illicit outflows.
China has become increasingly concerned about capital flight and the potential fallout on the country’s foreign exchange market as well as efforts by policymakers to shore up confidence in the world’s second-largest economy.
Police in Guangdong province had arrested 350 people suspected to be involved in 140 cases of underground banking and money laundering, Xinhua said, citing the provincial public security department.
Illegal banking has been rampant in some parts of the province such as the capital, Shenzhen, where an underground bank that handled 30 billion yuan in transactions was busted in August.
The story also cited a raid by Shenzhen police this month, where 10 suspects illegally moved 48 billion yuan out of the mainland from 2014 to 2015 by establishing fake trading companies in Shenzhen and neighbouring Hong Kong.