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Han Ximin
ximhan@126.com
SHENZHEN police have arrested 23 suspects for allegedly engaging in underground banking involving 51.6 billion yuan (US$8.09 billion).
In a coordinated action Nov. 4, police raided 10 underground banks and froze 1,009 bank accounts suspected of being used in money laundering and illegal cash transfers, the police authority said Thursday.
On July 25, the economic crime investigation department of the city’s public security bureau received a report about two suspects, surnamed Lin and Xu, allegedly engaging in money laundering and illegal cash transfers.
An investigation showed Lin, the ringleader, asked Xu, the husband of Lin’s niece, to open more than 100 bank accounts for his underground banking group. The accounts were used to illegally transfer money for clients in and out of China. Lin earned money by taking a commission on each transfer, according to police.
Chinese law prohibits people from transferring more than US$50,000 out of the country per year.
Lin’s 10-member ring allegedly transferred 13.6 billion yuan and 424 bank accounts were closed when the ring was busted Nov. 4, according to Zeng Ningguang, deputy chief of the department, speaking at a news conference Thursday.
In another case, two suspects, surnamed Wei and Xu, allegedly registered eight companies in Longhua New Area and Futian District to engage in foreign currency scams by fabricating export documents and contracts. They then allegedly transferred the money out of the country.
Police arrested 13 suspects and froze 585 bank accounts involving 38 billion yuan in the action.
Shenzhen, following a national plan, launched a three-month crackdown on underground banking. Fears over an economic slowdown and market instability sparked a wave of illegal capital outflow this year.
Shenzhen police busted 33 underground banks and arrested 41 people in three citywide coordinated actions this year. The banks were involved in money laundering and illegal cash transfers of 92 billion yuan.
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