Underground banking operation uncovered
8 August 2007
Six people have been arrested in Shenzhen, south China, for running a large underground banking operation, according to the State Administration of Foreign Exchange (SAFE), Beijing Evening News reported (in Chinese). Preliminary investigations have revealed that the underground bank was well-organized and had been providing illegal financial services for more than seven years. The regulator froze US$550,000 in 55 accounts of the bank, which had US$567 million in deposits in its Shenzhen branch from the beginning of 2006 to May this year. Most of the illegal transactions were connected to exports, oil sales, home purchases, land-rights transfers and securities investments. It had clients throughout the mainland, with key clients in Guangdong, Jiangsu and Zhejiang provinces, some of which were state-owned enterprises, said SAFE.
Bookmark and Share:
