China has cracked the country 's largest " underground bank " , which handled RMB 410bn ( $ 64bn ) of illegal foreign - currency transactions ; over 370 people have been arrested or face lawsuits . This brings the total for underground banking and money laundering activities in China to RMB trillion ( $ 125bn ) since April , as authorities seek to combat corruption . China 's economic slowdown and economic volatility have ignited a wave of capital outflows this year . What this does reveal is that China is struggling to control these capital outflows that have sent real - estate prices rocketing from Vancouver to Sydney . Bloomberg believes China 's capital outflows may have reached a staggering $ 194bn in September before dropping to $ 62bn in October . Differing ways of defeating controls of the cash flow have included smurfing , smuggling cash through customs , and getting an overseas mortgage based on assets held within China .
China has cracked the country's largest "underground bank", which handled RMB 410bn ($64bn) of illegal foreign-exchange transactions; over 370 people have been arrested or face lawsuits. This brings the total for underground banking and money laundering activities in China to RMB 800bn ($125bn) since April, as authorities try to combat corruption. China's economic slowdown and market volatility have ignited a wave of capital outflows this year. What this does reveal is that China is struggling to control these capital outflows that have sent real-estate prices rocketing from Vancouver to Sydney. Bloomberg believes China's capital outflows may have reached a staggering $194bn in September before dropping to $62bn in October. Differing ways of defeating controls of the money flow have included smurfing, smuggling cash through customs, and getting an overseas mortgage based on savings held within China.