Fabricated L/Cs amongst financial crimes found by China’s watchdog

China’s financial services watchdog uncovered nearly 60,000 cases of fraud in 2017, including a raft of trade-based financial crimes that often featured letter of credit (L/C) fraud.

According to the China Banking Regulatory Commission (CBRC), it unearthed frauds worth a staggering US$2.72 trillion.

Fabricated documents

One of the worst offenders according to the commission was China Guangfa Bank, which has its headquarters in Guangzhou.

After a CBRC investigation, the commercial banking corporation was found guilty of fabricating L/Cs and concealing toxic assets. The bank was fined more than US$100 million for its misdemeanours.

Track record

Since March 2017 the commission says it has uncovered nearly 60,000 cases of fraud involving 17.7 trillion yuan (US$2.72 trillion).

Fines totalling 2.9 billion yuan were imposed on 1,877 banking operations according to CBRC data.



Categories: Trade Based Financial crimes News