China Central Television (CCTV) has accused the Bank of China of illegally helping rich clients move money overseas and converting it into other currencies through a product called ‘Youhuitong.’
China’s state broadcaster aired a nearly 20-minute-long report that said Bank of China’s branches in several cities transferred large amounts of cash abroad for customers planning to emigrate.
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In some cases, the bank worked with immigration agents to help clients disguise the origins of their funds, the report said.
The report also alleged that Bank of China would charge handsome commissions on the transactions In exchange.
The report quoted unnamed BOC sources as saying the bank kept the programme secret because it knew it was illegal. However, BOC has denied the allegations.
Chinese foreign-exchange rules cap the maximum amount of yuan that individuals are allowed to convert into other currencies at $50,000 each year and ban them from transferring yuan abroad directly.
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By GlobalDataAccording to Xinhua news agency, the country’s central bank the People’s Bank of China is now looking into the matter.
"We have noticed the media report about a commercial bank’s cross-border renminbi business, and are verifying related facts," Xinhua quoted an unnamed PBoC spokesman as saying.
