Corrupt officials funnelled $128bn out of China

Dec 8, 2004
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Maine
#1
Corrupt Chinese officials escaped to the West with more than 800bn yuan (£76bn) in 'black money' in the two decades to 2008, a report by the country's Central Bank anti-money laundering bureau has claimed.

A total of nearly 18,000 officials drawn from Communist Party cadres, state-owned companies executives, police, judicial and customs officers were alleged to have siphoned off the funds, escaping to the West, often via small African and Asian countries.

The details of how corrupt officials embezzled billions and then smuggled their ill-gotten gains out of China evading the country's capital controls are contained in a 67-page report that appeared this week on the People's Bank of China website.

Stamped "internal materials, store carefully" and compiled in June 2008 the report was apparently published after winning a finance industry award, but was turned into front page news in several Chinese newspapers. It has since been removed.

Detailed analysis in "Research on the Channels and Detection Methods for the Transfer Overseas of Asset by Corrupt Elements in Our Country" showed how corrupt cadres funnelled their illicit monies to friends, family and mistresses living outside China before escaping the country.

Some used sophisticated money-laundering instruments to channel money through the banking system, while others laundered cash through casinos or simply smuggled suitcases of hard currency to Hong Kong.

Another favoured technique for smaller-scale fraud was to load their Chinese credit cards with expensive consumer goods overseas before paying the cards off back home in Chinese Yuan using 'black money'.

The report found that big fish, who could afford to obtain fake documents to land visas, went directly to developed countries like the US, Australia and the Netherlands, while relative minnows went first to African and Asian countries before making their way West.

The lack of extradition treaties between many Western countries and China – which still makes heavy use of the death penalty and has a poor record on the use of torture in prisons – has also helped to protect corrupt cadres living overseas.

China's ruling Communist Party warns it's cadres constantly about the dangers of the endemic corruption which enrages the Chinese public and, according to China's prime minister Wen Jiabao, threatens to poison the relationship between the people and the ruling-Party.

The Party, which refuses to submit to any external checks and balances such as independent courts or a free media has so far been ultimately unsuccessful in stamping out corruption despite some high profiles scalps, including most recently, the country's railways minister.
Rink

Corruption in China... no way...


 

mascan42

Registered User
Aug 26, 2002
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#2
Anything that helps to weaken the regime from the inside has to be a good thing. On the other hand, isn't this how the zombie plague starts to spread?
 

VMS

Victim of high standards and low personal skills.
Apr 26, 2006
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#3
Why do you think the MGM Casino in Vegas changed their lion entrance? To cater to Chinese gamblers. And in the 90s, when they changed the entrance, Chinese mayors/party officials were streaming to the US with millions in embezzled cash.

My people like to gamble. Macau is out for these embezzlers: it's under Chinese rule (or was soon going to be, at the time, so their records would be in the hands of Chinese officials). Monaco has one great casino, but it's not someplace that Chinese bumpkins feel comfortable. Vegas now has a quarter of their dealers learning Mandarin Chinese just to cater to the Chinese gambler.

Shit, if you walk around Vegas a bit, you can spot them. The Chinese guys with the bad haircuts, the $10,000 suit, sweatsocks, and the Rolex knock-offs are pretty obvious when you know what you're looking for. I saw one of those poor saps get picked up by a gorgeous black hooker a few years ago. I'm convinced he got rolled by her within the hour.