The People's Bank of China punished 12 financial institutions involved in money laundering in the first half of this year with fines totalling 2.25 million yuan ($328,654), the central bank has revealed. "We checked a total of 1,084 financial organisations, which include 907 banking institutions, 71 securities and futures institutions and 106 insurance institutions," said head of the bank's anti-money laundering bureau, Tang Xu. Tang did not name any of these organisations but said he has seen more money flowing in and out of underground private banks through questionable dealings in recent years. Those banks make illegal transactions by collecting idle capital and then promising high interest rates. They then lend money at even higher interest rates to reap profits.
展开▼
