This is the third batch of foreign exchange cases reported by the SAFE this year.
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From May to June 2020, Nanjing Jin’ao illegally traded three foreign exchange transactions through underground banks, totaling $635,000, and was fined about $70,340. In December 2019, Anshan Dingtai was fined about $105,510 for three illegal transactions of foreign exchange through underground banks, totaling $812,000. The two companies were Anshan Dingtai Earthwork Engineering Co., LTD. From November 2018 to January 2020, Zeng illegally traded 32 foreign exchange transactions through underground banks, totaling $7.472 million, and was fined $841,750. On the same day the state media revealed the first case of illegal currency exchange via game point cards, the CCP’s State Administration of Foreign Exchange (SAFE) reported 10 cases of illegal currency exchange by “underground banks.” The 10 cases involved two enterprises and eight individuals punished by the SAFE from 2020 to 2021.Īmong them, the biggest penalty was for illegal trading of foreign exchange by a person outside China named Zeng. SAFE Reported 10 Cases of Illegal Foreign Exchange Underground banks earn service fees from the transactions. The domestic customer service then sells the cards and transfers Chinese currency (RMB) into domestic accounts designated by the overseas customers.
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The underground banks require overseas customers to top up their GTCs using foreign currency. The suspects recruited several domestic GTC dealers to facilitate the illegal exchange of foreign currency. Through a self-fixed exchange rate, the cards are used as the medium to connect the domestic and foreign exchange transactions, so that it looks legitimate.
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Over 20 people have been arrested and 3 online exchange platforms have been shut down.Īccording to the report, the suspects liked the international liquidity and price stability of online GTCs. In six years, the underground bank has transferred $3.75 billion.Īccording to Chinese media reports, the underground bank used the GTCs as a medium to form a multi-link currency exchange chain in China, helping domestic and foreign customers exchange currencies.
#The secrets of underground medicine by richard gerhause cracked
Shanghai police recently cracked the first case of an underground bank selling game time cards (GTC) as a cover for illegal currency exchange. The Chinese Communist Party’s (CCP) strict controls on foreign exchange have led to a proliferation of underground banks.