China: Money-launderers use Chinese online shopping sites to funnel cash offshore

Money launderers have used some of China’s leading online shopping sites to transfer billions of dollars to offshore gambling sites, police raids have revealed.

People wishing to evade China’s strict capital controls, for example, to gamble on offshore websites, have been placing fake orders on the shopping sites, including on Pinduoduo, China’s second-largest platform by users. A corresponding sum is then credited to their gaming account.

In recent months, several police forces across China have announced arrests in a slew of cases, alleging that at least Rmb14bn ($2.06bn) was laundered to offshore gambling sites through these fake e-commerce purchases and other methods.

The original full article can be found at ft.com

(Photo: Bloomberg)

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