Trillions Leave US

Trillions Leave US

More Than 1 Trillion US Dollar Funds ILLegally Outflow China in Past Decade –
Switzerland decided to terminate its banking secrecy, and this is highlighted by the global media. But it is notable that till now the Chinese Communist Party (CCP) Authorities have never required the Swiss banks to provide the bank account information of fled corrupt officials. By contrast, many other countries experienced the refusals of Swiss banks. As a matter of fact, China has been ranked as number one country of “funds illegally outflowing in the world”, which is estimated at more than 1 trillion US dollars during the past decade’s money laundering. According to statistics, China has almost 20000 corrupt officials who successfully fled away overseas and brought away funds between 0.8 and 1.5 trillion US dollars.The Organization of Economic and Cooperative Development (OECD) headquartered at Paris published an announcement on May 6 and stating that on that day’s Annual Ministerial Conference, 34 OECD membership countries and 13 other countries including Brazil, China and Singapore together agreed to sign a treaty “Automatically to exchange information and data among banks”. Such a piece of news signals that Switzerland is no longer the “tax haven” of the CCP’s corrupt officials.

Non-profit organization Global Financial Integrity based in Washington DC, published a report at the end of 2013. The report shows that from 2002 to 2011, the illicit outflowing of funds as a consequence of tax evasion, corruption and crime reached 1.08 trillion US dollars and China ranked as number one of “funds illegally outflowing in the world”.

Since the mid-1990s, the absconded corrupt officials who took positions in the CCP, Chinese governments and state-owned enterprises had reached between 16,000 to 18,000 and took away 0.8 trillion RMB, according to a study report “The Channels of Transferring Assets to Overseas by Corrupt Officials” published by the CCP’s Central Bank in June of 2008.

A worker of one Shaanxi state-owned enterprise Li Yu: “This is a government with unlimited power. The group of vested interests have monopolised the countries’ industries. They must know that one day such assets will be not secured, so once they have stolen people’s wealth, they had to transfer the funds overseas. This is inevitable.”

Xiao Yang is the former President of the Supreme People’s Court. In the “Anti-Corruption Report” published in 2009, citing the statistics provided by relevant governmental departments, says, during the 15 years from 1988 to 2002, the outflowing of illegal funds reached 191.3 billion US dollars with a yearly average of 12.7 billion US dollars. In terms of that time’s exchange rate of US dollars to RMB, the outflowing illegal funds could be more than 1.5 trillion RMB.

The promise of handing over detailed information of all foreigners’ accounts is paramount for chasing corrupt officials or tax evaders. Swiss banks have maintained banking secrecy for their clients for several hundred years and managed massive offshore assets of around 2.2 trillion US dollars.

But British Financial Times reports, some offshore account owners have transferred funds to limited offshore financial centres which refused to apply transparency policies.

American The Atlantic monthly magazine reported in November of 2013, corrupt Chinese officials and crooked businessmen smuggled billions of dollars overseas. Much of the funds has ended up in overseas real estate—particularly in high-end neighborhoods in London, New York, Los Angeles, Sydney and Toronto. The CCP Authorities are deploying global chasing actions during the current anti-corruption campaign.

In July of 2014, Canada and the CCP Authorities had agreed to seize, share and return the proceeds of crime.