Wealthy Chinese Use Underground 'Hawala' Networks to Secretly Move Cash Abroad
-
Wealthy Chinese citizens are using underground "hawala" systems to secretly move cash out of the country amid economic uncertainty.
-
The hawala system is unregulated and based on trust, but allows people to bypass strict capital controls on moving money overseas.
-
Those caught using illegal money transfer services face heavy fines and potential jail time.
-
The underground banks likely use funds from criminal groups like drug traffickers to settle exchanges.
-
Demand remains high to move money out of China, with an estimated $150 billion expected to exit the country this year.