Essays on Money Laundering in China and Anti-Money Laundering Activities Case Study

Download full paperFile format: .doc, available for editing

The paper “ Money Laundering in Сhinа and Аnti-Mоnеy Laundering Асtivitiеs” is an intriguing variant of the case study on finance & accounting. Money laundering is a serious issue and a punishable offense. It is the process through which individuals masquerade the original ownership as well as control of the proceeds of corruption and crime by making the proceeds seem genuine and to have been got from legitimate processes. There are various ways through which property that has been criminally derived can be laundered. The financial sector is usually at the center of money laundering activities.

China is one of the nations that face a higher risk of money laundering and various cases have been brought to the limelight (He, 2010, p. 17). This paper will examine the issue of money laundering in China as well as the anti-money laundering activities that have been put in place to deal with the problem. Money laundering scandals in ChinaMoney laundering takes various forms. However, most of the offenses have comparable characteristics internationally. A money laundering offense has two major elements; the basic act of laundering, which entails the provision of financial services, and an indispensable degree of suspicion or knowledge with regard to the conduct of the client or the source of funding.

Money laundering is considered illegal and thus it is usually criminalized as a way of taking the profit out of crime (Ping, 2006, p. 106). Criminalization is based on the fact that it is wrong for people or institutions to help criminals to gain from their criminal undertakings. There are many scandals of money laundering in China. Big Chinese banks have in one way or the other participated in money laundering activities.

One of them is the Agricultural Bank of China. Among other money laundering activities, its employees were involved in a scam that led to 3.9billion Yuan loss. Two employees from the bank’ s Beijing branch invested money got from the illegitimate sale of bills of exchange, which were eventually lost. The employees used a large amount they got from the sale of the bills to venture into the Chinese stock market. This is just an example of such scams in the country.

The Agricultural Bank of China was also caught up in an embezzlement case amounting to $578m.

References

Cassara, J.A., 2016. Trade-based money laundering: the next frontier in international money laundering enforcement. London: Wiley & SAS business series.

Cheng, H. and Ma, L., 2009. “White collar crime and the criminal justice system: Government response to bank fraud and corruption in China.” Journal of Financial Crime, vol. 16 no. 2, pp.166-179.

Hamilton, J. 2016 (Sept 29). Chinese Bank Sanctioned by Fed over Money-Laundering Safeguards. News. Available [online] from http://www.bloomberg.com/news/articles/2016-09-29/chinese-bank-sanctioned-by-fed-over-money-laundering-safeguards [accessed 8 October 2016]

He, P., 2010. “A typological study on money laundering.” Journal of Money Laundering Control, vol. 13 no.1, pp.15-32.

Minder, R. 2016. Spanish Unit of China’s ICBC Raided in Money Laundering Case. The New York Times. Available [online] from http://www.nytimes.com/2016/02/18/business/dealbook/spanish-unit-of-chinas-icbc-raided-in-money-laundering-case.html?_r=0 [accessed 8 October 2016]

Muller, W.H., Kalin, C.H. and Goldsworth, J.G. eds., 2007. Anti-money laundering: international law and practice. New York: John Wiley & Sons.

Ping, H., 2006. “Is money laundering a true problem in China?”. International journal of offender therapy and comparative criminology, vol. 50 no.1, pp.101-116.

Tang, J. and Ai, L., 2010. “Combating money laundering in transition countries: the inherent limitations and practical issues”. Journal of Money Laundering Control, vol. 13 no.3, pp.215-225.

The Edcomm Group. 2015. Anti-Money Laundering (AML) in China. Banker’s Academy. Available [online] from http://bankersacademy.com/resources/free-tutorials/57-ba-free-tutorials/666-aml-china [accessed 8 October 2016]

Weinland, D., 2016. Chinese bank hit by $4.9bn loan fraud: One of China’s biggest bank scandals emerges at Bank of Liuzhou. Financial Times. Available [online] from https://www.ft.com/content/31fd750e-d06d-11e5-831d-09f7778e7377 [accessed 8 October 2016]

Xinhua, 2016. 450 Chinese nabbed for suspected involvement in underground banks, money laundering. Available [online] from http://news.xinhuanet.com/english/2016-08/17/c_135604593.htm[accessed 8 October 2016]

Download full paperFile format: .doc, available for editing
Contact Us