China considers legislative act to curb underground banking crime

China's top legislative bodies are considering drafting a legal act to clamp down on underground banking crimes, according to the Supreme People's Procuratorate (SPP) Friday.

The legislation will standardize legal procedures against illegal bank crimes, including evidence gathering, conviction criteria and which laws apply, said the SPP.

Five top authorities, including the SPP, the Supreme People's Court, Ministry of Public Security, People's Bank of China and State Administration of Foreign Exchange, are carrying on a joint operation from April to December to bust illicit money laundering and transfers by offshore companies and underground banks.

For the suspects who escaped overseas to illegally trade foreign currency or transfer bribes across borders, the SPP will request international assistance such as the Interpol's red notice to arrest the fugitives.

Underground banks, which run without financial supervision, not only threaten the economy and financial security, but also encourage smuggling, money laundering and state assets embezzlement, according to the SPP. Endi