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As South China Morning Post reports, a day after Bank of China (BOC) was accused by the state broadcaster of breaking foreign exchange rules by helping people take money out of the country, it has emerged a second state bank has also been offering the service. Industry sources told the South China Morning Post yesterday that China Citic Bank - controlled by the Citic Group, which in turn is directly controlled by the State Council, China's cabinet - also facilitated the movement of currency overseas, including Hong Kong. ... "Both BOC and Citic Bank have been able to do this business only after they got approval from the Guangzhou branch of the People's Bank of China. So the PBOC definitely knows what the business is about," said the source, who declined to be named as he was not authorised to speak to the media. ... "The case is not about money laundering but more about whether the mainland banks have got the authorisation to transfer money out of the country," the source said. ... On Wednesday, CCTV aired footage showing an employee of a BOC branch in Guangdong coaching an undercover journalist on how to channel large sums of money overseas. Under Chinese law, citizens are allowed to take only the equivalent of USD 50,000 out of the country each year. CCTV accused the bank of "blatantly offering money laundering services" and fabricating information through it's money transfer platform Youhuitong. To find out the real reason WHY the PBOC (China's Central Bank) authorized this strategy and the consequences thereof, contact us here! Comments are closed.
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