(Yicai Global) Feb. 6 -- China's foreign exchange regulator teamed up with police to uncover almost a hundred cases of illegal private banks dealing in currency that involved hundreds of billions of yuan last year.
The investigation nabbed over one hundred criminal suspects red-handed and levied fines of over CNY200 million, the State Administration of Foreign Exchange (SAFE) announced yesterday. SAFE thereby controlled financial risks in a practical manner and further ensured economic and financial security, the agency said.
SAFE will cooperate with police again this year to harry operators and clients of shadow banks by imposing both criminal and administrative liability and thus eliminate the basis for illegal foreign exchange trades by private banks, the regulator advised.
It will trace both upstream and downstream illegal fund trades to unearth these criminal networks, SAFE added. China has set the upper limit on residents' foreign exchange purchases as USD50,000 or other equivalent foreign currencies per person per year.