Underground bank and Money Laundering Typologies – Viets & Sino

The Perpetrator was Ruan Zhizhong who operated in China and Vietnam. In August 2009 Chinese law-enforcement raided an underground bank and money laundering gang that had sent an estimated USD1.46 billion abroad in illegal transfers.

Chinese media reported that, “During a raid of the gang’s headquarters in Guangxi’s Fangchenggang City, Police seized 70 deposit books, 590 bank cards, two cars, six computers and 680,000 Yuan (USD99,400) in cash” as well as freezing 327 related bank accounts involved in the money laundering case with a total value of 47.5 million Yuan (USD7.6million).

According to a Guangxi Police Spokesman, Qin Yongjun, the gang had been opening legal bank accounts in Guangxi as well as Guangdong and Fujian Provinces. They then used the accounts to make illegal electronic transfers abroad mainly to Vietnam.

For many years the Chinese government has imposed restrictions on the overseas transfer of money. This led parties to resort to underground banks to illegally launder and move money abroad. As a way to simultaneously facilitate the legal transfer of funds and at the same time reduce related criminal activity, the Chinese State Administration of Foreign Exchange has since relaxed its policy on international transfers, yet related incidents continue to occur.

Published by Kemman

Regulatory and Independent Consulting Professional with expertise in Financial Crime Risk Compliance encompassing Anti-Money Laundering (AML), Countering Terrorism Financing (CTF), Anti-Bribery & Corruption (ABC – FCPA & UKAB), Global Trade & Sanctions, Bank Secrecy Act (BSA), Know Your Customer (KYC) and Customer Due Diligence (CDD), Internal Audit Testing, Reviews, Validation, Risk Assessment. Worked in Asia, Africa, Europe, the Middle East, North America (USA). Banking & FinTech, Anti-Sex & Human Trafficking Advocate, FOREX & Cryptocurrency trading, Travel & Tours, Telecommunications & Energy.

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