Clients Move Money Out of China, with Some Help from Canadian Banks

Published By : 08 Sep 2015 | Published By : QYRESEARCH

Wealthy Asian investors are moving their money out of China with some help from Canadian banks. The large amounts of money moved to Canadian banks are being often used to but real estate in Vancouver. It has been reported that since January 2012, around 8,200 suspected transactions have been made that have been mostly facilitated by the banks in Canada. It is interesting to note that since January 2012, China started cracking down on citizens suspected of corruption. The findings about the suspected money laundering has been revealed by FinTRAC, the federal agency responsible for tracking money laundering activities. 

With the inflow of money from China to buy real estates, the luxury housing market in Vancouver has soared. In China, it is illegal to remove more than US$50,000 a year without permission from the government. The law is in place to stop corrupt millionaires from running away with their money. However, it has been revealed that millions of dollars have been sent to banks in Vancouver through multiple wire transactions of small amounts by friends and families of millionaires. 

The data has raised questions about the effectiveness of federal laws meant to curb money laundering and transactional crimes. However, experts point out that the Canadian police lacks resources to take on such cases. Political differences between the two countries has further made it difficult for the police to track these cases. The Canadian Imperial Bank of Commerce has been accused of helping clients to move substantial amount of money out of China even though the bank is acquainted with the Chinese law. However, CIBC has defended its practices saying that it is the responsibility of the remitting institution in China to check the remittance transaction.

Back To Top