China War on Underground Banks Uncovers $148 Billion in Illegal Trades: Financial News


China has uncovered over 1 trillion yuan ($148 billion) worth of illegal transactions by underground banks this year, the official Financial News reported on Thursday, citing a senior official at the foreign exchange regulator.

The State Administration of Foreign Exchange (SAFE) will step up investigations into capital outflows and intensify a crackdown on underground banks to foster healthy development of the country’s foreign exchange market, Zhang Shenghui, a senior director at SAFE told the newspaper.

So far this year, SAFE has uncovered illegal capital outflows worth $8.43 billion, and with the help of police has busted 56 cases of illegal transactions via underground banks, he said.

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