Date
23 January 2017
The Chinese syndicates had links to shell companies in Hong Kong that were involved in foreign exchange transactions and money laundering, according to officials. Photo: CNSA
The Chinese syndicates had links to shell companies in Hong Kong that were involved in foreign exchange transactions and money laundering, according to officials. Photo: CNSA

HK-linked money laundering gang busted in Zhejiang

Chinese police have smashed the country’s biggest underground banking syndicates involved in money laundering worth up to 410 billion yuan (US$64.24 billion). 

About 100 suspects were arrested after simultaneous raids in eastern Zhejiang province, Reuters reports, citing official media.

The syndicates were linked to shell companies in Hong Kong that were involved in foreign exchange transactions and money laundering.

In August, China said it would launch a three-month crackdown on underground banking as an economic slowdown and market volatility have sparked a wave of capital outflows this year.

Underground banking presents an increasingly complex threat to China’s financial security, encompassing issues from financing for drugs and terrorism to tax fraud, the Ministry of Public Security said earlier this year.

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