Chi targets 'black banks' in latest anti-graft crackdown

Beijing, October 16: 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 magers of state-owned companies accused of corrupt activities, the Chi Daily reported.

Most have absconded to popular destitions, such as the US and Australia, where a lack of bilateral extradition treaties and differences in intertiol 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 Chi and the State Administration of Foreign Exchange to share information and establish a mechanism to coordite 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. (IANS)