CHINESE CASH COURIERS WITH PEP FLIGHT CAPITAL COMING TO A BANK NEAR YOU

FROM THE - CHRONICLES of  Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA~

~Contributed & Written by Kenneth Rijock ~

Multiple reports, verifying that a small army of cash couriers, seen transporting the maximum amount allowed by law ($50,000 or equivalent), out of China, should be a wake up call for Western compliance officers, for a large amount of this "flight capital" is believed to be owned by Politically Exposed Persons, (PEPs) and you can assume that it came from bribes, kickbacks, or unlawful compensation. 

The blame has been laid upon the fear that China's declining economy will deteriorate further, causing a fall in the value of the national currency. Much of the money being moved out of China is dollars, or another hard currency.

Some affluent Chinese are engaging (hiring) relatives or associates to each bring out the max, and some have been caught engaging in bulk cash smuggling, in prohibited amounts. The danger, for North American and EU banks, is that there is little trustworthy information available on exactly who is, and who is not, a mid-level PEP, in China. 

Therefore, one banks an individual who appears to be a small business owner, and it later turns out that he is the head of a government-owned company, or a general or flag rank officer in the military, or the managing director of a non-profit, or a charity.

This is just one more indicator to Western compliance officers that literally ALL new Chinese clients must be subject to enhanced due diligence, lest their PEP status is discovered too late to stop transfers of dirty money, laundered cash, or untaxed profits owed to the Government of China. Remember, China has a long list of those of it nationals that it wants returned to the Peoples' Republic, for crimes of one type or another.

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CHINA TRIES TO COVER UP NEWS OF ITS CORRUPT PEPS BY KIDNAPPING HONG KONG PUBLISHERS

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock

All the news on corrupt Chinese PEPs is important to compliance officers, but it also sells big in Hong Kong, where mainland censorship does not exist.

China's kidnapping of five publishing house executives, from companies that regularly publish details of Chinese corruption at the highest level, reinforces the fact that China simply does not want you to know about the extent of corruption, among its power elite, many of whom have socked away millions obtained illegally, all in overseas accounts and investments.

One of those kidnapped was a UK citizen, taken in Hong Kong, which is a serious breach of the British-Chinese agreement on the former Crown colony. Another, a Swedish citizen, was kidnapped in Thailand. No wonder the public in Hong Kong is angry and frightened.

If China can go to such lengths, to intimidate individuals who publish the truth about its leaders, then all EU and North American compliance officers should adopt the position that ALL affluent Chinese nationals seeking to open accounts, or business relationships require Enhanced Due Diligence investigations, because the truth of their PEP status could be well hidden, and not reported in the media.

I would now consider that there is a rebuttable presumption that your new wealthy Chinese client is a PEP, until you eliminate him as such. This may sound overbearing, but since China is going to such lengths to be opaque about its leaders, one must assume the worst, until you rule it out.

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