On October 30, 2015 (September 18, 2015 in the lunar calendar), the country's largest "underground bank" case revealed a fake overseas account and a money laundering channel. Illegal trading of foreign exchange illegal trading of foreign exchange to make money. There are countless bank cards, U-shields, and various seals... On the evening of October 30, 2015, Jinhua police showed for the first time the results of their crackdown on underground banks in the "September 16 Project", and these in the photos are only a small part. Police said that this was only part of the seized evidence. Others, such as data on the suspect's transaction records, were printed on A4 paper and required 35000 sheets of paper, which were 3 meters high when stacked together. What can be clear is that this is by far the case of illegal foreign exchange buying and selling involving the largest number of people and the largest amount of money involved in the country. The amount involved so far has been identified as reaching more than 410 billion yuan. Currently, 8 criminal gangs above designated size have been eliminated, and a total of 303 people have been cracked down. Among them, 100 people have taken criminal coercive measures, 69 people have been transferred for prosecution, and 203 people have been transferred to the SAFE for administrative penalties. Illegal buying and selling of foreign exchange He had dealings with more than 800 accounts. In September 2014, the anti-money laundering department of the People's Bank of China found that accounts such as Yufu Logistics Co., Ltd. were suspicious and large amounts of funds were often transferred across borders. On September 16, leaders of the Economic Investigation Bureau of the Ministry of Public Security went to Zhejiang and handed over suspicious clues to the Jinhua City Public Security Bureau, codenamed "Project 9¡¤16," and Jinhua Public Security was responsible for investigating them. What kind of clue is this? Clues show that since January 2013, a man surnamed Zhao has registered and established dozens of companies such as "Yufu Logistics" in Hong Kong. Zhao is a 38-year-old native of Shaoxing and temporarily lives in Yiwu. Preliminary investigation showed that Zhao used offshore accounts to transfer more than 100 billion yuan across borders. There are more than 800 domestic accounts with Zhao's account, involving Beijing, Guangdong, Ningxia, Anhui, Jiangxi and other provinces and cities. Zhejiang Province mainly involves Jinhua, Shaoxing, and Ningbo. Is there any violation of laws and regulations in the cross-border transfer of such a large amount of funds? Jinhua Public Security Bureau invited professionals from the Foreign Exchange Management Department of the People's Bank of Jinhua and bank finance experts to analyze and investigate accounts. The investigation found that Zhao was very vigilant, kept a low profile and cautious character, and did a watertight job in his business. The electronic information in his company is kept secretly, making it difficult for even insiders to access it. He often "washes" the funds transferred in by customers. "He will split and merge funds in more than a dozen processes, and eventually transfer them abroad." said the police. Half a month after the underground bank eliminated 8 gangs and froze more than 3000 bank accounts, the task force roughly understood the organizational structure of Zhao's gang. There are more than 30 people in this gang. Zhao is the commander-in-chief. The specific funds are controlled by his wife Zheng. The others are responsible for online banking operations, accounting, contact agencies, etc. The division of labor is clear. Some of the gang members are family members and have a strong relationship. While investigating Zhao, the police also successfully broke into Zhao's circle. In addition to Zhao's gang, there were also seven gangs attached to Zhao or engaged in similar illegal trading of foreign exchange. On December 15 last year, under the unified deployment of the Ministry of Public Security, Jinhua Public Security dispatched 343 police officers to Guangdong, Guangxi, Xinjiang and other places to conduct a unified operation against criminal gangs illegally buying and selling foreign exchange banks. This operation destroyed 26 criminal dens, sealed up and seized a large number of property involved in the case, frozen more than 3000 bank accounts, and frozen hundreds of millions of yuan. The police collected more than 1.3 million transaction data from all the accounts involved in the case, made them into Excel forms and printed them on A4 paper. It took 35000 sheets to print them all, and they were 3 meters high when stacked together. Police said that among these transaction records, there are many transactions of more than 100 million yuan, with huge amounts. This operation eliminated 8 illegal foreign exchange trading gangs, cracked down on 303 people, took criminal coercive measures against 100 people, transferred 69 people for prosecution, and transferred 203 people to the SAFE for administrative penalties. It has been found that the amount involved in the case is more than 410 billion yuan, making it currently the largest number of people involved and the largest amount of money involved in the case in the country. How do you make 1 million a day? A Jinhua man's family sent out to kill him. Yang, a Cantonese man, is the leader of one of the gangs. He is 46 years old this year. Yang said that he used to do foreign trade and made money, but it was very hard and risky. Once, he was chatting with a friend and talked about illegal buying and selling of foreign exchange. Yang thought he could give it a try, because he used to do foreign trade and knew better about foreign exchange settlement. After doing it, Yang felt that he really made money. The average income per day was more than 50,000 yuan, and the maximum amount was 1 million yuan a day. There was also a gang leader who impressed the police deeply. His surname was Shi, 25 years old, and he used to run a restaurant in Jinhua. Later, when he became a "scalper" in foreign exchange trading and became a "business", he brought in his parents, girlfriend, and childhood friends from the same village to work. How to make money illegally buying and selling foreign exchange? Shi explained that he registered a company in Hong Kong and maintained an offshore account with a domestic bank. After collecting RMB from customers in China, he added 100 points to the normal exchange rate, converted it into US dollars, and then transferred the US dollars to the customer's designated account. "100 pips" is a foreign exchange trading term, which means that, for example, on a certain day, the RMB is 6.3000 against the US dollar, and adding 100 pips is 6.3100. Taking selling 1 million US dollars as an example, scalpers can make a profit of 10,000 US dollars by adding 100 pips. Police said that Zhao and other gangs mainly used two foreign exchange trading methods: one was to take advantage of the fact that there were no restrictions on overseas purchase of foreign exchange to transfer RMB across borders through overseas accounts, and then transfer it to buyers after settling foreign exchange at some banks in Hong Kong. The other is to use domestic and foreign accounts and online banking operations to complete the separate and separate transfer of RMB and US dollars. It seems that domestic funds flow within the country and overseas funds flow overseas. There is no physical transfer of funds, but through domestic and overseas "knock-on" The "balance account method actually achieves the purpose of transferring funds across borders for customers. Some people use this to defraud the government to export and reward the police. They say that underground banks have become an important channel for criminals to transfer funds from various criminal cases such as corruption, online gambling, and telecommunications fraud. Due to the hidden operations of underground banks, a large amount of cross-border funds of unknown nature are separated from the national financial supervision system, seriously disrupting the order of the national financial capital market and the implementation of macro-control policies, and endangering national financial security. Moreover, illegal buying and selling of foreign exchange also facilitates other crimes. During the investigation, the police found that Pan, who had financial dealings with Zhao, had problems. A number of funds were transferred to Pan's account from relevant departments in Ningxia, which was noted as "export incentive funds", with an amount of up to 20 million yuan. After investigation, Pan was actually a gang leader who defrauded the government of export rewards. Since 2013, Pan has registered 12 trading companies in Ningxia. In the absence of real trade, he has purchased export data through customs brokers and freight forwarding companies in Shenzhen, Dalian, Qingdao and other places, and the companies under his name have declared for export. Then, Pan bought foreign exchange from Zhao to create the illusion of export collection and defrauded the local government of more than 30 million yuan in export rewards. At present, Pan and others have been arrested on charges of "fraud." The police also found that a Shaoxing man surnamed Yu frequently bought US dollars from Zhao, in a huge amount of more than 20 million yuan. After investigation, the police found that Yu was a department manager of a foreign trade company in Shaoxing. He colluded with the owner and accountant of a sock company. After agreeing on the relevant points for falsely issuing value-added tax invoices, he signed a false purchase contract, and the company falsely issued value-added tax invoices. Yu pretended to export in the name of the company, and also bought foreign exchange from Zhao to create the illusion of foreign exchange collection. Since 2012, Yu has falsely issued special value-added tax invoices of hundreds of millions of yuan, defrauding the state of export tax rebates of tens of millions of yuan.