Financial Crime World

Financial Crimes on the Rise in China: Trends and Statistics

Introduction

China, the world’s most populous country and second-largest economy, is facing a significant threat from financial crimes. The complex financial system, including some of the world’s largest commercial banks, has made it an attractive target for fraudsters and money launderers.

Types of Financial Crimes in China

  • Credit Card Fraud: According to recent statistics, credit card fraud is one of the most common types of financial crimes in China. In 2016-2018, there were over 100,000 accepted financial fraud cases by the court in China, with a significant proportion being credit card-related scams.
    • Online shopping scams
    • Telemarketing scams

Telemarketing and Internet Deception

  • Prevalence: In 2019, leading channels for telemarketing and online fraud in China included phone calls, social media platforms, and online shopping websites.
  • Victims: The majority of victims were young adults, with a significant proportion being female.

Corruption in China

  • Convictions: Between 2013 and 2017, there were over 100,000 corruption convictions, with confiscation value reaching over $10 billion during the same period.
  • Suspicious Transactions: Suspicious transactions reported to Hong Kong’s ICAC increased significantly between 2013-2018.
  • Corruption Offenses: Corruption offenses received from MLA requests by Hong Kong also increased.

Money Laundering and Terrorism Financing

  • Convictions: Between 2014 and 2021, there were over 10,000 money laundering convictions based on crime type.
  • Confiscation Value: Confiscation value of illegal foreign currency carriage when leaving China reached over $100 million between 2013-2016.
  • Arrests: The number of arrested persons financing terrorist activities in China increased from 2012 to 2016.

Investigations and Penalizations

  • Hong Kong’s Authorities: Investigations by Hong Kong’s authorities also saw significant increases during this period.
  • People’s Bank of China: Penalized financial institutions by People’s Bank of China also saw significant increases during this period.
  • Intelligence Agencies: Terrorism financing investigations in Hong Kong by intelligence agencies also rose between 2013-2017.