Chinese authorities just uncovered a massive “underground bank” in the country’s eastern Zhejiang province, according to a report in the People’s Daily, the official Chinese Communist Party newspaper.
The scale of the operation reported is astonishing. The report suggests 410 billion yuan ($64 billion, £42 billion) in foreign exchange transactions were made by the unnamed illegal organisation. 370 people have reportedly been arrested.
China’s currency is tightly regulated by the government, so even multinational firms have struggled with large foreign exchange deals. An underground bank effectively smuggles money in and out of China for investors.
