What Are Different Types of Financial Crimes?

Financial crime refers to acts that occur in the course of financial activities, violate financial management regulations, disrupt financial management order, and are punishable by penalties according to law. Such as money laundering and financial fraud are all types of financial crimes that we are familiar with in our daily lives.

Financial crime

Article 13 of China's criminal law uses the combination of extension and connotation to make an accurate and complete definition; financial crime is a type of crime, and its connotation can be examined from the perspective of criminology and finance.

From the perspective of criminology, financial crime refers to all acts that violate socialist financial management order and should be punished by criminal law.

From the perspective of finance, financial crime refers to

The classification of financial crime is based on the certainty of the characteristics and types of financial crime. The so-called financial crime refers to the violation of financial regulations by

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Aiming at the problems existing in the management of the relevant administrative departments when overseas organizations or established companies engage in illegal activities in the country, they must first attach great importance to their ideology and fully understand the guarantee.

Most foreign investment management companies in Shanghai

In nine of the four cases, the criminal suspect set up a representative office or office in Shanghai in the name of an overseas company; in four cases, a foreign investment consulting management company was established in Shanghai in the name of investment and wealth management; Illegal business establishments shall be set up in the territory to engage in illegal underground banking activities. If the suspect Wu is a Taiwanese, he colluded with the suspect Xie, and in July 2004, registered a wholly-owned Shanghai Xunhui Investment Consulting Co., Ltd. in Shanghai in the name of Hong Kong Securities Investment Co., Ltd. and instructed his employees to pass Investors are called by telephone, and they promise to invest 100 times to engage in foreign exchange margin and London gold transactions. After requiring investors to deposit RMB deposits into Xie's account, Wu and Xie will remit Renminbi through illegal channels and enter the country as investors. The established margin account was engaged in trading. After investigation, 298 investors in Shanghai alone were deceived into investing a total of more than 32 million yuan.

Criminal tactics are mainly illegal operations in the financial field

In addition to mainly attracting investors to engage in overseas illegal foreign exchange and gold margin trading, these criminals are also involved in a number of financial services such as illegal deposits of corporate loans and loans in China as well as letters of credit agency and illegal foreign exchange trading. The criminal activities involved cover almost the entire business of the financial industry. For example, a criminal suspect of New Zealand nationality Lu Mou engaged in an illegal business case. In December 2002, he established an investment management (Shanghai) company in Shanghai. In order to obtain illegal interests, it has been engaged in banking financial services such as illegally absorbing deposits, issuing loans, buying and selling foreign exchange, and credit card agency since April 2003, involving a total amount of more than RMB 10 billion. For example, from April 2003 to March 2008, it used a method of signing a "trusted asset management agreement" or "asset management agreement" with three companies in Shanghai, and successively collected three units for more than 1.3 billion yuan as a guarantee. The financial company provided foreign exchange loans to these three units' overseas affiliates abroad, and received interest of more than 8 million yuan. From February 2005 to March 2008, it successively illegally absorbed deposits from 21 enterprises and individuals in Shanghai, Shandong, Sichuan, and Yunnan, totaling more than 1.1 billion yuan, through asset management, investment and wealth management, and foreign trade margin.

Mostly plan for foreign personnel

Of the 18 persons involved, 10 were overseas personnel, one each from Australia, New Zealand, Indonesia, Malaysia, Russia, four from Singapore, and one Taiwanese. All of them have a college education or higher, all have the experience of studying and living in China, have a good command of spoken Chinese, and are familiar with the domestic situation. Some people also have experience in financial business abroad. They are also actively searching for highly educated young people to join management in criminal activities. For example, the Russian criminal suspect, Dima, has studied in Shanghai since 2002. After graduation in 2004, he established an office in Shanghai under the name of Paret Marketing Co., Ltd. and served as its chief representative. Lou, who hired a criminal suspect with overseas study experience as a market analyst and director of operations after online recruitment and interviews, and subsequently recruited some people to start overseas foreign exchange margin trading. Advertising, providing commission sharing and developing domestic agents to solicit investors to participate in foreign exchange margin transactions of overseas companies. As of March 2008, it has solicited more than 3,600 domestic investors, and received more than 55 million yuan in foreign exchange margin paid by investors. At the time of the case, most of the investors' trading accounts had lost money.

Collusion with criminals at home and abroad

Some foreign agency officials know that in order to engage in financial business in China, they must be licensed by the state regulatory authority. Companies or offices established in overseas names that have legal status in China to engage in illegal financial business are not easy to detect, so they are actively developing agents in China. Some domestic companies engaged in investment consulting disregard laws and regulations, and collude with foreign institutions to actively solicit investors to engage in illegal financial activities. For example, the suspect Ma is the chief representative of the Shanghai Representative Office of a Hong Kong holding company. Since December 2005, according to the company's requirements, the staff of the representative office has been seeking agents in the country to engage in gold and foreign exchange margin trading. By August 2007, Malaysia had passed 20 companies and 88 individuals who had developed domestically. Solicited more than 500 investors to engage in gold and foreign exchange transactions, and received a deposit of more than 20 million yuan. Among them, Wang Jia, the legal representative of Shanghai Chenkai Investment Consulting Co., Ltd., and Wang Yi, a manager, became agents and actively encouraged customers to engage in gold trading through the company's online trading platform in Hong Kong. A total of more than 60 investors were solicited, and a deposit of more than 11 million yuan was collected. By the time of the incident, most investors had lost more than half.

Set up an "underground bank" privately for foreign exchange transactions.

Some overseas institutions or individuals are very familiar with China's foreign exchange management situation. They take advantage of the restrictions on the use of foreign exchange management by some domestic enterprises, and some people transfer money to overseas for gambling and other illegal activities. , Set up an agency in China to specialize in illegal foreign exchange transactions. For example, the suspects Luo, Mo, Li and Chen are employees of Huanyu, a private company in Singapore. Since 2003, under the direction of the company's person in charge, Mr. Wu, has rented residential houses in Shanghai, Jiangsu and other places as the operating place of Huanyu Company, and engaged in illegal activities of underground banks. Provide foreign exchange settlement for those units and individuals engaged in overseas gambling, money laundering and evading overseas trade supervision. Adopt domestic payment and collection of RMB funds, overseas collection and payment of corresponding foreign exchange funds, engage in RMB trading business such as foreign exchange between Singapore and China. As of April 2006, funds involving 8 units and 551 individuals in 23 provinces of China totaling more than 5.3 billion yuan have seriously disrupted China's normal financial order.

The amount involved is particularly huge, with many victims

Nine cases involved a total crime amounting to more than RMB 20 billion, with the highest number of cases reaching nearly 10 billion yuan and the least amounting to tens of millions of yuan. The amount of crime is much higher than other economic crimes, and the number of people involved has reached more than 6,000. There are many companies, and most of the victims are wage earners, and most of them lack relevant investment and financial management knowledge. They are too trusting in these so-called "agents" and "brokers", and some investors even fully entrust "agents" or "brokers" "People" transactions, providing conditions for criminals to collect money. Judging from the investigations conducted by the investigating authorities after the incident, most investors lost their money, lost some money, and made almost no profits. The nine cases involved a total of more than 6,000 investors, some of which were involved. Many victims or units were deceived when they were discovered. They strongly demanded that the judicial authorities punish criminals while taking various forms to recover the lost property. However, since most of these criminals used high-end consumption such as car and house purchase after illegally collecting money, and some even transferred their property overseas, some cases could not recover the stolen money. The judicial organs made great efforts to recover some of the stolen money and it was difficult to make up for the huge losses.