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Alert! This operation involves the transfer of funds from the country to the account was seized!
Apr 24,2022
Recently, according to court documents in a civil lawsuit in the Federal Court of the Central District of California, over a period of at least three years, criminals illegally opened hundreds of bank accounts for their Chinese customers at Bank of America (Bank of America) by corrupting and bribing bank employees, giving hundreds of unverified individuals or organizations direct access to the U.S. financial system.
The United States Government therefore requested the confiscation of funds in fraudulently opened accounts. Currently, the funds involved in the case are being held by the U.S. BSA.
The court documents said that although China has strict regulations on the amount of funds transferred out of China by individuals and enterprises, a large number of Chinese citizens and enterprises are still trying to transfer funds beyond the prescribed amount out of China, often to the United States, and the use of funds includes both legal and illegal.
A large number of non-resident foreigners, mainly Chinese, sought to open bank accounts in the United States, the document said.
Prior to the outbreak, in 2019, the Domestic Administration of Foreign Exchange allowed one person to exchange $50000. If a Chinese wants to buy a house in the United States, he can find 20 heads and remit 1 million US dollars. But in the past two years, domestic capital control has become more and more strict.
The main force in the early transfer of funds was mainly officials, and more recently it was business owners. In particular, after the teaching and training industry, e-commerce live broadcast, artist brokerage, etc. 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 to circumvent the authorities' capital control. One is to transfer funds through Chinese currency exchanges, especially the Hong Kong currency exchange, to bank accounts in the United States.
Another is the transfer of funds through the IVTS system (commonly known as the underground money shop). An underground bank is an unconventional (or illegal) method of transferring funds that does not operate through a formal bank.
For example, a customer in China transfers a sum of money to an operator of the IVTS system in China, who instructs the system's foreign assistance staff to deposit the equivalent foreign currency (net of fees) into a foreign account designated by the customer.
Court documents say underground banks are common in many areas, including China. This method is often used for criminal purposes because there are no funds to enter or leave the country, so there is no record of any international transfer of funds;
In addition, because underground banks require large amounts of funds from non-traditional banking systems to meet customer needs, they are often used to launder cash receipts from fraud or drug transactions.
In addition, in this case, for the copy of the passport provided by the Chinese applicant to the account broker, several account brokers involved in the case, and the bank employees who took bribes, their authenticity will not be verified, and even whether the applicant is the holder himself;
In some cases, the passports provided were stolen, while others were forged and contained the identity information of an unidentified person.
In view of the above operations, the plaintiff stated that the funds in the accounts involved constituted or came from traceable illegal operations, including the entry of false information in bank records, telecommunications fraud, bank fraud, etc., and therefore demanded the confiscation of the funds in these illegally opened accounts.
Mr. Liu, a senior American investor, said that many Chinese people's funds are also earned by their own hard work. Therefore, if you want to transfer funds, you still need to carefully understand the relevant regulations of the United States.
Regarding the strict control of foreign exchange in China, Mr. Liu said that although the authorities had said before that they would relax the restrictions on individual foreign exchange purchases, there was no news now. At present, only some Chinese who have companies in the United States may make money relatively easily.
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