Jun 18, 2011

How corrupt officials take dirty money out of China

The FT reports:
Corrupt Chinese officials smuggled an estimated $123.6 billion of ill-gotten gains out of the country over a 15-year period, according to a report released by China’s central bank… It provided a fascinating insight into the mechanisms behind that corruption by identifying eight ways that officials funneled their illicit funds offshore:
  • Overseas casinos were commonly used to launder money in collusion with gaming operators
  • Many officials carried large amounts of cash across the border
  • or disguised money transfers to relatives, mistresses and other confidantes abroad.
  • More sophisticated cadres relied on fake trade documents and overseas investments.
  • Others used credit cards to buy large amounts of luxury goods overseas and then used illicit funds to pay back the fees in China.

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