China’s forex regulators accused ten banks assisted illegal capital outflows to warn market players
POLICY & REGULATION
China’s forex regulators accused ten banks assisted illegal capital outflows to warn market players
POLICY & REGULATION

China’s forex regulators accused ten banks assisted illegal capital outflows to warn market players

 

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China’s foreign exchange regulator said 10 banks had assisted illegal capital outflows and vowed to crack down on fake forex transactions.

The State Administration of Foreign Exchange (SAFE) listed 10 “typical” cases of misdeeds, involving money flowing overseas illegally through bank businesses such as offshore loans, trade finance, and outbound investment and said the misconduct involved local branches of 10 banks including some of the country’s top lenders, between 2017 and 2020.

SAFE pledged to “strengthen the supervision of the forex market and crack down on illegal and unlawful behaviours with a focus on false and deceptive forex transactions.”

Listing the 10 cases is aimed at sending a warning to market players, the state-run Shanghai Securities News said on Friday, citing an unnamed SAFE official. SAFE will strengthen oversight of cross-border trade and investment against illegal forex transactions to safeguard national economic and financial security, the report said.