Categories
Posted October 09, 2018 09:16:31Chinese people have been known to make a fortune by selling fake currency, or “black money,” in a variety of ways.
According to a report by the World Bank, a Chinese citizen may sell a “gold coin” of 100 Chinese yuan ($1,865) worth $1,000 to a Chinese government official in exchange for cash.
That person can then resell the coin at a higher value, according to the report.
This practice has been going on for decades.
For a time, this “black-market” practice was not considered illegal, but it has been increasingly targeted by the government in recent years, leading to accusations that Chinese people are “traitors” for selling counterfeit goods.
In the United States, the U.S. Treasury Department has been cracking down on the practice, issuing a new guidance that states that “fraudulent use of counterfeit currencies can result in criminal sanctions.”
For example, the government is warning people against using counterfeit currency for the sale of alcohol and tobacco, and it is urging citizens to report fraudulent purchases to authorities.
This comes after an earlier warning that Chinese citizens “could face penalties” for using counterfeit money to purchase goods, such as drugs.
For some, this has been a long-term issue.
A 2013 report from the International Monetary Fund (IMF) concluded that there is a “potential for cross-border illicit money laundering,” which is the practice of moving money out of countries where it is used to commit crime.
A recent study from Harvard Business School found that in 2016, Chinese citizens who were living in the United Kingdom used counterfeit currency to buy property in the country.
According to the World Health Organization, there is “growing concern that illicit transactions in counterfeit currencies are being used to facilitate drug trafficking, and therefore to fund criminal activities.”
According to some estimates, up to 90 percent of all drug transactions take place in China, and some experts believe that the use of fake currencies is directly tied to the country’s economic problems.
A Chinese businessman with ties to the government was arrested last year for using fake currency to purchase the house of a drug dealer in Hong Kong.
The man was charged with the possession of counterfeit currency and was reportedly sentenced to 12 years in prison.
In addition to being arrested, the man had to pay back $1.3 million in fake currency.
In October, another Chinese citizen was arrested for allegedly attempting to buy counterfeit currency with counterfeit currency.
The government has said that it will continue to crack down on people who are selling counterfeit money, but there are some measures it may take to stop it.
The People’s Bank of China has announced a new rule that will limit the amount of money that a person can purchase with counterfeit money in the future.
In addition, the China Banking Regulatory Commission (CBRC) has begun an investigation into the possibility of people “laundering” counterfeit currency by buying it with a U.K. bank.
This is an action that is expected to bring further scrutiny to the use and use of the Chinese currency.
