Authorities in China's commercial center Shanghai have uncovered
a five billion yuan (US$633 million) money laundering case, the
largest ever in the country's history.
The case was exposed accidentally in a probe into falsification
in business registration jointly launched by the Shanghai office of
the central bank and other government agencies, the Shanghai
Securities Journal said Friday.
The report gave no details of the case other than that it
involves "underground" banks, or illegal private businesses
offering remittance, foreign exchange and other banking
services.
Though a relatively new thing in China, anti-money laundering
has increasingly drawn?the attention of Chinese
authorities.
In 2003 the central bank was given the power to handle
anti-money laundering investigations.
In October this year, the national legislative body adopted the
country's first anti-money laundering law, which expanded the
definition of money laundering to include bribery, and gave the
central bank greater power in investigations.
The new law, which will take effect on Jan. 1, 2007, will pave
the way for China to join the Financial Action Task Force on
Anti-Money Laundering (FATF), an international organization also
devoted to cut off funding to terrorists.
(Xinhua News Agency December 2, 2006)