Australian Immigration Daily News

THE China state broadcaster CCTV has launched an extraordinary attack on the Bank of China, one of the country’s most powerful government-­controlled financial institutions, accusing it of money-laundering in Australia and other countries.

Australia has emerged at the centre of the allegations bexause of the Significant Investor Visa program, which offers an accelerated pathway for wealthy ­investors to gain permanent residency by investing $5 million in Australian bonds, funds or a small business.

Chinese nationals account for nine out of 10 applicants since the program was introduced under the former Labor government.

Under China’s stringent foreign exchange law, citizens are allowed to send only $US50,000 ($53,000) abroad per annum. Australia has been repeatedly mentioned as the destination of “grey money” coming out of China in relation to the visa ­program.

In the CCTV report, undercover footage shows the Australian national flag on a Bank of China stand at a busy emigration fair, advertising Australia as an important destination for investors. Social media posts from major media outlets about the story were featuring prominently a map of Australia.

“We don’t care where your money is from or how you earn it, we can help you get it out of the country,” a Bank of China employee is quoted as saying at the fair. “We don’t care how black your money is or how dirty it is, we will find ways to launder it and shift it overseas for you.”

Bank of China declined a request for comment.

It is understood the China Banking Regulatory Commission has intensified its investi­gation into money-laundering and has recently signed an agreement with US authorities that allows greater information-sharing about bank accounts.

The CCTV report accuses the Bank of China of money-launder­ing via a scheme called You Huitong, translated as You Uncapped, which lets wealthy Chinese circumvent Beijing’s strict currency controls. “You Huitong is a shadowy business,” CCTV says. “It is unbelievable that such a big bank is violating the law to fill its own pockets.”

It is understood some private bankers from Australia’s big four banks have been aware of the You Huitong service for a year.

Media reports in November detailed allegations of Chinese businessmen using private jets to ferry suitcases of cash and deposit them at a Bank of China branch in Melbourne.

A senior manager reportedly with one of the big four Aus­tralian banks told CCTV that the Bank of China was crucial to the bank’s migration business. “The money is very safe and will leave the country in a very grey ­channel.

“The Bank of China is the same as an underground bank (a Chinese term for black market operators that launder money),” the unnamed official said.

He said only the Bank of China could carry out operations on such a large scale.

Source: http://www.theaustralian.com.au/news/world/chinese-washing-cash-in-australia/story-e6frg6so-1226983607356?nk=ed5760b730fc712a37f9176d12ed1e41