China’s feud on underground banks reveals $148 bln in illegal trades
This year, China has already disclosed over 1 trillion Yuan worth of illegal transactions by underground banks, as the official Financial News posted on Thursday, quoting a senior official at the foreign exchange regulator.
The State Administration of Foreign Exchange is going to step up investigations into capital outflows and also intensify a crackdown on underground financial institutions to ensure healthy development of the country's foreign exchange market, according to the interview with Zhang Shenghui, a senior director of SAFE.
So far this year, SAFE has managed to disclose illegal capital outflows worth approximately $8.43 billion, and by means of police it has busted up to 56 cases of transactions via illegal banks.
Aside from that, SAFE has punished three banks for inadequate compliance measures, leading to several companies utilizing fake trades to purchase foreign currencies.