China’s illegal money-laundering system, which controls foreign exchange, has been in place for decades. But now, including our own Jiangsu, a ¥200 million scam has been caught with some individuals who were operating in Shanghai and beyond.
First, a little background. This reporter lived in Shanghai from 1993 to 2003. During this time, it was common for individuals looking to earn foreign currency to contact foreigners, especially near the Bund.
Often referred to as “money change?” It is called People, because of their friendly greetings, the idea was that they would give you a better price for dollars, deutschmarks or dinars than the bank. Then they simply stole the tariff and sold the money to China. At the time, they were prohibited from buying foreign currency. They also wanted to smuggle foreigners, but that’s another story.
Most of these people were small time, but others realized that they were able to turn such a side business into a main business. Here in the year By 2022, the gang has now been arrested by authorities in Shanghai, although their illegal foreign exchange business has raked in ¥200 million over the years.
The city’s Pudong police said the main suspect, Mr. Cai, was suspected of running an illegal foreign exchange ring and making huge profits. Cai was central to what the police called “foreign currency banks”.
It turns out that Kai, who runs a paper craft workshop, was previously involved in garment processing. It will also sell Chinese-made clothes overseas to expand its business, The Paper reported this morning, October 24.
As he conducted a lot of foreign business, Kai gradually became familiar with some foreign exchange procedures. But he was not satisfied with just making clothes.
He soon brought the two together to solve the problem, along with foreign businessmen he knew, looking for Chinese people in urgent need of foreign exchange.
Investigators confirmed that Cai was indeed engaged in illegal exchange business in several Chinese provinces, including Guangxi, Jiangsu, Zhejiang and others.
On September 14, law enforcement officers traveled to Jiangsu, among other places, to arrest the suspects in the case. They successfully arrested 11 individuals, including Kai himself. The investigations are ongoing.