Lai laundered 12b yuan in Canada
( 2002-07-18 09:34 ) (10 )

Lai Changxing, China's most-wanted fugitive, has laundered at least 12 billion yuan in Canada through "underground banks". It is still unknown how much money the Chinese government will recover.

Lai, the country's most-wanted fugitive, is currently under Canadian custody. China hopes the Canadian Government deports him to China as soon as possible.

News from Vancouver said that the Lai Changxing couple were conditionally released from the detention center on June 28, royal Canadian cavalry police set three orders for the couple for fear that they would escape again, one of the orders is to forbid them to go to gambling house or get in contact with sinister gangs.

Lai, the country's most-wanted fugitive, is currently under Canadian custody. China hopes the Canadian Government deports him to China as soon as possible.

Canadian police ever found two bank cards of other people in Lai's wallet, his wife Zeng Mingna has six banking accounts and two fixed deposit accounts in the Hong Kong and Shanghai Banking Corporation.

Police said that at least 12 billion yuan has been laundered to Canada through "underground banks", it is still unknown how much money the Chinese government will recover.

Sources say many previous cases have indicated that difficulty in the extradition of criminals is related with a country's imperfect law on anti-money-laundering.

Famous economist Wu Shuqing submitted a proposal during the NPC & CPPCC Sessions (2002) on enacting an Anti-Money-Laundering Law, which, he advised, be included in the plan of the next NPC and be drafted by the related working body of the NPC Standing Committee.

According to Huang Weiting, money laundering is in nature a criminal act in that criminals "legalize" the unlawfully-gotten money and cover up its real source, banking institutions, especially banks, are the main channels for money laundering, banks can provide various capital converting means including cash check.

There are generally three ways for money laundering through banking institutions, first, by smuggling such as Lai Changxing's smuggling case, the second, by price transfer, by colluding with foreign companies, corrupt elements usually profit from materials exported at much lower than normal price and from materials imported at much higher than normal price, then transfer and deposit the gains from price difference in foreign accounts.

Money laundering in Russia and many other countries are very common, and the third one, escape with huge money to other countries in the form of making investment.

Huang said that after China's WTO entry, capital exchange with the outside will be greatly increased, capital trading methods become more complicated, thus making money laundering more covert.

So far, China's finance laws and regulations lack explicit stipulations to demand that banks submit reports on suspicious trade, and standards or guiding principles for identifying such trade.

If we fail to consider countermeasures as soon as possible, money laundering will disrupt normal economic order. It is usually the source breeding corruption, even directly affect our policy of opening to the outside world, state economic security and social stability.

China is intensifying its fight against money laundering, on July 5, an anti-money laundering system is instituted by People's Bank of China. Huang said that it is a good move, but it is just a beginning.