Jan. 19, 2021 - Epoch Times
05:56
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| Time | Text |
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| The U.S. Treasury Department will investigate the risks posed by China's money laundering and develop a strategy to defend against it, as required by the National Defense Authorization Act of 2021. | |
| British anti-money laundering expert Graham Barrow said that in the past, international anti-money laundering efforts focused on Central and Eastern Europe, as well as the former Soviet republics, but now the attention has been shifted to China. | |
| A capitalist society still operating within the communist regime. | |
| In addition to national defense policies and military spending, the NDAA recently passed in Congress includes an important task. | |
| The Treasury is required to conduct studies on money laundering by the People's Republic of China A report to Congress by January 2, 2022, on the results of its reviews. | |
| The required investigation and report would look into the extent and effect of illicit finance risk related to the Chinese government and Chinese companies. | |
| Including financial institutions, illicit finance risks stemming from China, and whether such risks are caused by the Chinese government's weak regulatory oversight. | |
| According to a recent Voice of America report, in 2018, there were only 47 money laundering cases in China, involving 52 people. | |
| In 2019, the Financial Action Task Force, the world's leading intergovernmental anti-money laundering organization, criticized China for imposing too few penalties on money laundering. | |
| Then, in the first six months of 2020, the People's Bank of China issued fines of more than $53.9 million to China's financial institutions That violated money laundering laws, more than the total issued in 2019, reflecting tougher supervision. | |
| According to Zhongyi, an insider working at an investment bank in China presently, Chinese people from all walks of life, from ordinary civilians to officials, are trying to transfer money overseas. | |
| It is for the purpose of political stability that the Chinese Communist Party, CCP, is working hard to prevent capital flight. | |
| There's a lot of cash in Chinese society. | |
| The government may not know exactly how much cash the entire Chinese population has, and the problem of overissuance of China's renminbi is too serious. | |
| Another issue is that as a result of the trade war with the United States, with Australia and the Western world, there are economic sanctions that have led to insufficient foreign exchange reserves. | |
| If many people need to exchange renminbi to be able to transfer their assets overseas the foreign exchange reserves will be further reduced. | |
| The CCP's economy and policies will then become very unstable. | |
| Gao Guanjun, a Chinese lawyer in the United States who is familiar with the inside secrets of China's Ministry of Public Security, revealed that some corrupt CCP officials have brought out bureaucratic institutions and transferred funds in the name of national security. | |
| Ma Jian, the former deputy minister of national security who has been sacked, was the one of those who helped the top CCP officials launder money. | |
| Frank Hsieh, a business professor at University of South Carolina Aiken, believes that the CCP's anti-money laundering efforts are mostly aimed at ordinary people and is having difficulty monitoring high-ranking officials. | |
| The biggest beneficiaries of money laundering, also the biggest players in money laundering, are actually the CCP officials themselves. | |
| They can easily find ways to transfer money through their connections or special channels to avoid being caught and punished. | |
| The upper echelon of the CCP themselves Know it very well from top to bottom. | |
| Those on the top have already transferred their own assets abroad. | |
| Broad, to a certain extent, they all transfer money out through various ways of money laundering. | |
| Common methods of money laundering include cash smuggling, shadow companies, faking trade invoices, purchase of real estate, gambling, and illegal underground banks. | |
| In October 2012, Global Financial Integrity, a Washington, D.C.-based research and advisory organization, estimated illegal flows out of China amounted to $3.2 trillion between 2000 and 2011 using the method of trade misinvoicing estimated illegal flows out of China amounted to $3.2 trillion between 2000 and 2011 using the method of trade misinvoicing by looking at discrepancies between China's official | |
| Zhang Tianliang, associate professor at Feitian University, used the same comparison method to calculate the data between 2012 and 2020. | |
| He estimated that China have illegally transferred $10 trillion worth of assets overseas in the past 20 years. | |
| Their main method is transferring money through trade, through overseas purchases. | |
| There is also a more common financial tool, which is to use domestic assets as guarantee to get foreign loans. | |
| Sometimes they even pretend that they have defaulted on an overseas contract and they have to pay a penalty with their domestic assets. | |
| All these are possible options. | |
| Graham Barrow, a banking expert in London, pointed out that shell companies are also a major tool used for Chinese money laundering. | |
| The United Kingdom has identified 30,000 such companies, and their legal persons are all Chinese citizens. | |
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