China targets ‘black banks’ in latest anti-graft crackdown

Beijing, Oct 16 (IANS) The Chinese government is stepping up its latest anti-graft crackdown on illegal lending and money-laundering operations in a bid to prevent outbound flow of stolen assets.

The public security ministry said “black banks” and illegal currency exchanges have facilitated the flights of a number of former government officials and senior managers of state-owned companies accused of corrupt activities, the China Daily reported.

Most have absconded to popular destinations, such as the US and Australia, where a lack of bilateral extradition treaties and differences in international law and legal process ensure they are safe from extradition.

Towards the end of August, the ministry began a three month operation targeting underground lenders, money launderers and offshore funds.

Meng Qingfeng, vice-minister of public security, said the ministry will work closely with the People’s Bank of China and the State Administration of Foreign Exchange to share information and establish a mechanism to coordinate and conduct rapid investigations into suspicious outbound flows of assets.

Corrupt officials or business leaders secretly planning to leave the country have used a network of underground banks to send “millions of dollars” of illegally obtained assets overseas, according to officials.

So far, more than 230 suspects have been apprehended in many major cases, and more than 100 black banks have been closed down, ending operations thought to have netted about 670 billion yuan ($105 billion).

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of or any employee thereof. is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here