Date
23 October 2017
Bank of China rejects claims that it helped Chinese immigrants move unlimited funds offshore. Photo: Bloomberg
Bank of China rejects claims that it helped Chinese immigrants move unlimited funds offshore. Photo: Bloomberg

Bank of China denies money laundering accusations

Bank of China has denied claims by the state broadcaster that it helped to launder money for mainland immigrants by evading annual foreign exchange caps for individuals, according to an online statement Thursday.

The lender said there were “discrepancies between the facts and the report”.

China Central Television reported Wednesday that BoC’s You Huitong money-transfer service helped wealthy mainlanders applying for overseas immigrant investor schemes send unlimited funds offshore. Under existing mainland rules, individuals can transfer no more than US$50,000 out of the country each year.

BoC responded by saying that it launched a pilot cross-border yuan transfer program for investment immigration and overseas property purchases in 2011 in consultation with regulators. In all foreign exchange transactions, staff always ask for proof of both the source and use of the capital, the bank said.

The bank’s statement disappeared from its website and Weibo account soon after its release only to reappear without the former direct reference to CCTV.

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