Guang­dong cuts off chan­nels for il­le­gal trans­fers of money

China Daily (USA) - - CHINA - By ZHENG CAIXIONG in Guangzhou zheng­caix­iong@ chi­

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.

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