Guangdong cuts off channels for illegal transfers of money
The Guangdong police have cut off a major channel used by corrupt officials to transfer assets abroad after cracking more than 140 cases involving illegal transactions through secret private banks and offshore companies.
Wu Yilai, deputy director of the economic crime investigation bureau under the Guangdong provincial department of public security, said police across the province detained 350 suspects in recent months in cases involving more than 230 billion yuan ($35 billion) during a special campaign code-named Jufeng 6.
The campaign, which was launched in April, is aimed at fighting the illegal transactions in the southern province, one of the country’s economic powerhouses, Wu said.
“The large sums of money that have been seized and frozen include the bribes corrupt officials wanted to send abroad via the secret banks and offshore companies,” Wu said at a news conference in Guangzhou on Tuesday. The bosses of the private banks didn’t want to know where the money came from when they helped clients send it out of the country, he added.
According to Wu, the private banks usually charged 2 to 3 yuan per 1,000 yuan as a service fee for sending money abroad. The same rate applied to other currencies, such as dollars.
The Jufeng 6 operation has been launched in Dongguan, Shenzhen, Foshan, Yunfu, Huizhou, Shanwei, Jiangmen, Jieyang and other Pearl River Delta cities province.
In Shenzhen, police busted 11 private banks and related operations in a crackdown launched on Sept 29. Police detained 30 suspects in matters they said involved more than 48 billion yuan.
A large number of bank cards, computers, fake documents and official seals were also seized.
Police in Shanwei busted four underground private banks involving 50 billion yuan and detained 10 suspects in an operation last month.
The Dongguan police detained another 20 suspects after a sweep of 10 private banks run by an organized crime gang. The gang was suspected of having illegally traded foreign currencies valued at more than 16 billion yuan in recent months.
Wu said Jufeng 6 had dealt a heavy blow to the activities of the province’s secret private banks and has helped ensure good financial order in Guangdong. But he admitted that fighting the banks continues to be difficult in Guangdong.
Wu said more special operations would be conducted.
Zhang Jing, director of the legal affairs department at the Guangzhou branch of the People’s Bank of China, said his bank has worked very closely with law enforcement in the fight against illegal trading of foreign currencies through the shadow banks. in Guangdong
were involved for illegal transactions in Guangdong during a campaign since April.