China has cracked the country's largest "underground bank", which handled RMB 410bn ($64bn) of illegal foreign-exchange transactions; over zero 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.
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.