Financial Crime World

Financial Crimes on the Rise in China: Types and Statistics

China, the world’s second-largest economy and most populous country, is facing increasing risks of financial crimes. As the country opens its financial sectors to foreign institutions and investors, it is also becoming more involved in global financial crimes.

Types of Financial Crimes in China

Telemarketing Fraud and Internet Deception

  • These are among the major proceeds-generating financial crimes in China.
  • According to recent statistics, online scams are on the rise, with main scenarios including phishing, online shopping scams, and investment scams.

Corruption

  • Corruption has been a significant problem in China, with high-profile cases involving government officials and business leaders.
  • In 2017, there were over 1,000 corruption convictions, with confiscation values reaching over $3 billion.

Money Laundering and Terrorism Financing

  • These crimes are also on the rise, with China’s authorities reporting an increase in suspicious transactions related to money laundering and terrorism financing.

Statistics

  • Telemarketing and Online Fraud: Over 10 million people were victims of telemarketing and online fraud in China in 2020, with an average loss of over $1,000 per person.
  • Online Shopping Scams: In 2019, the total value of online shopping scams in Hong Kong was over $100 million.
  • Corruption Convictions: The number of corruption convictions in China has increased by over 50% since 2013.
  • Suspicious Transactions: In 2017, there were over 10,000 suspicious transactions reported to Hong Kong’s ICAC, with over 1,500 related to money laundering and terrorism financing.

Investigations and Enforcement

China

  • In 2017, the People’s Bank of China investigated over 20 financial institutions for suspected money laundering activities.
  • In 2016, there were over 10 arrested persons in China who were accused of financing terrorist activities.

Hong Kong

  • The Hong Kong authorities have also been taking action against money laundering and terrorism financing, with over 50 investigations launched in 2017.

Conclusion

Financial crimes are on the rise in China, with telemarketing fraud, corruption, and money laundering being significant concerns. As the country continues to open its financial sectors, it is essential that authorities take proactive steps to prevent and investigate these crimes. With increased enforcement and awareness, China can reduce the impact of financial crimes and promote a safer and more secure financial environment for its citizens.