China punishes illegal forex traders

China sentenced 11 illegal foreign currency traders to one to six years in prison and fines from 30,000 to 120,000 yuan (3700 to 16,000 US dollars), according to the State Administration of Foreign Exchange.

Beginning August 25 last year, the State Administration of Foreign Exchange, Fujian provincial Administration of Foreign Exchange, and Fujian public security administration began to fight against underground banks.

Many overseas Chinese have ties to Fujian province and remit foreign currencies worth billions of yuan to the province each year. Some of the cash was mailed into China through underground banks and some domestic funds were transformed into foreign capital via underground banks in order to enjoy favorable policy only for foreign capital.

Altogether 522 bank accounts were frozen with cash surpassing 45 million yuan (5 million US dollars).