alert! This operation involves transferring funds from China and causing the account to be seized!
Recently, according to court documents in a civil lawsuit in the Federal Court of the Central District of California, for at least 3 years, criminals illegally opened hundreds of banks at Bank of America for their Chinese customers by corrupting and bribing bank employees. accounts that provide hundreds of unverified individuals or organizations with direct access to the U.S. financial system.
The U.S. government has therefore demanded that the funds in the fraudulently opened accounts be forfeited. The funds involved in the case are currently being seized by the U.S. Marshals Service.
The court documents stated that although China has strict regulations on the amount of funds that individuals and companies can transfer out of China, a large number of Chinese citizens and companies continue to try to transfer funds beyond the specified amount out of China, often to the United States, and the use of funds includes Both legal and illegal.
A large number of nonresident aliens, mostly Chinese, have sought to open bank accounts in the United States, the documents said.
Before the epidemic, in 2019, the domestic foreign exchange administration allowed one person to exchange 50,000 US dollars. If a Chinese wants to buy a house in the United States, he can remit $1 million if he finds 20 heads. However, in the past two years, domestic capital control has become more and more strict.
The main force of transferring funds in the early stage was mainly officials, and more recently business owners. Especially after the education and training industry, e-commerce live broadcast, and artist brokerage were hit, some domestic funds were eager to seek exports and enter the United States.
In court documents, it is mentioned that the Chinese often transfer money in two ways in order to evade the authorities' control of funds. One is to transfer funds through Chinese currency exchanges, especially Hong Kong currency exchanges, to U.S. bank accounts.
Another is to transfer funds through the IVTS system (commonly known as the underground bank). An underground bank is an unconventional (or illegal) method of transferring funds that does not operate through formal banks.
For example, a customer in China transfers a sum of money to an operator of the IVTS system in China, who instructs the system to deposit the equivalent value of foreign currency (after deduction of handling fees) into a foreign account designated by the customer in a foreign country. .
Court documents say underground banks are widespread in many regions, including China. This method is often used for criminal purposes because no funds enter or leave the country, so there will be no record of international transfer of funds;
In addition, because underground banks require large amounts of funds from non-traditional banking systems to meet customer demand, they are often used to launder cash proceeds from fraud or drug transactions.
In addition, in this case, the passport copies provided by the Chinese applicant to the account broker, several of the account brokers involved, and the bank employee who received the bribe will not be verified for authenticity, or even if the applicant is not verified. the licensee himself;
In some cases, the passports provided were stolen, while others were counterfeit and contained the identification information of unrelated persons.
In view of the above operations, the plaintiff stated that the funds in the accounts involved constituted or came from traceable illegal operations, including entering false information in bank records, wire fraud, bank fraud, etc., and therefore requested the confiscation of the funds in these illegally opened accounts.
Mr. Liu, a senior American investor, said that many Chinese people have also earned their own funds through hard work. Therefore, if you want to transfer funds, you must carefully understand the relevant US regulations.
Regarding the strict control of foreign exchange in China, Mr. Liu said that although the authorities have said before that they will relax the restrictions on personal foreign exchange purchases, there is no news now. At present, there are only some Chinese with companies in the United States, and it may be relatively easy to make money.