About money laundering
Wu Jian
two thousand and fourteen year ten month twenty-seven day
Recently, I made some new friends and learned something about money laundering during chatting.
Fujian is a province with extensive overseas relations, close ties and frequent economic exchanges, which naturally involves underground banks, money laundering and other matters. Some people who go there through various channels, including smuggling, often need to do business. It is easy for Chinese people to make money in Europe because they are diligent and Chinese goods are cheap. If you earn money, you can spend it in Europe. Of course, if the consumption level is obviously on the high side, European tax authorities will also check. More people earn money and hope to return to China for consumption. For example, if they get a wife to build a house, honor their ancestors, repay the principal and interest (stowaways), these money will need to be returned. However, China's foreign exchange is subject to capital account control and cannot be returned through banks. Even if each person brings tens of thousands of yuan, or the equivalent of euros, through the entry and exit, the round-trip cost of that person is also very high. Chinese people, who make money doing business in Europe, can only keep a large amount of cash in hand and can't return home. The family still owes others money for goods, and others are urging for payment, which may also generate interest. In addition, the Chinese in Europe cannot deposit in the bank. If they deposit in the bank, the income tax will be generated immediately. Europe is a high welfare country, and the income tax is very high 30-70% , far more than the normal Chinese business 15% Profit. If they are smugglers, these euros can hardly get out of European countries with strict capital regulation, and may even be confiscated. Therefore, a large number of Chinese are in Europe, and a large number of euros are stranded. Money laundering, or underground banks, came into being, that is, to move foreign money back.
It is impossible for the money to enter the bank. Even if you enter the bank, it is difficult to enter China, because China implements capital control. If it is not regulated, a large amount of foreign capital will make waves in the Chinese stock market. Things are forced out. Some people do business like this. For example, the money laundering of ants moving is to use some people with identity to know and contact travel groups to Europe. These tourists must spend money in Europe, and Chinese people especially like to buy luxury goods. These tourists were originally prepared to use RMB to exchange for euros, and then travel to Europe for shopping. Now they don't need it. When they go to Europe, someone will pick them up for free and invite them to eat for free. Then everyone will send tens of thousands of euros to provide them with consumption. They can also bring tens of thousands of euros in cash when they return to China, which can be deposited in the Bank of China. After they returned home, the euro they used in Europe was calculated as the equivalent of RMB, about one ： eight point four Around the same time, the tour group members will pay the person with the identity and even enjoy the preferential exchange price. In this way, each person can bring tens of thousands of euros, one twenty People's tour groups can move hundreds of thousands of euros back. This is very hard and effective. However, a large number of euros still have no way, and many people are worried. It is said that if it can operate safely and smoothly, the profits of money laundering will generally reach 5% about.
It is said that there are also giant enterprises that can also launder money. These enterprises, which have companies in many foreign countries, need to invest. In the past, they used to invest by converting Chinese Renminbi into foreign currencies through the Bank of China. If it is convenient to contact money laundering, it is to deposit the euro in Europe in the name of a Chinese company in the European Bank of China. In China, we can take out the equivalent amount of RMB in private name, so that we can kill two birds with one stone and make profits. However, now that China has liberalized the restrictions on foreign investment of RMB capital, it is much more convenient. Otherwise, China would hold too much foreign exchange.
In fact, the money laundering mentioned above is not harmful to the country. After all, it is the money earned by Chinese people through hard work, and the money returns to China, which is increasing the wealth of China. What needs to be vigilant is that corrupt officials in China need to launder money and get rid of corruption in China. The money they embezzle is too easy and too large, which is often laundered through underground banks. However, the cost of such money laundering is very high, which is said to be about 30-60% 。 Such money laundering needs to be severely punished.
