China's police has cracked down on 47 underground banks and illegal foreign exchange institutes in 2005, uncovering billions of dollars of illegal dealings.

Police managed to confiscate 31 million yuan (3.8 million US dollars) in cash, and 170 million yuan in over 2,000 bank accounts has been freezed, the Ministry of Public Security announced on Thursday.

Police also imposed fines totaling 10 million yuan.

Illegal foreign exchange dealing, largely conducted in underground banks, has been prevalent in recent years. It has seriously disturbed domestic finance market order and become a channel for illegal funds flowing to foreign countries, the police authority said.

The ministry on Thursday warned the public of the severity of the crime and announced that all the money involved would be confiscated once police discovered such activities.

Source: Xinhua