Chinese group prosecuted for money laundering in Vietnam

By Lam Le   March 17, 2016 | 05:29 pm GMT+7

Seven Chinese citizens stood trial on March 16 for transferring money illegally between China and Vietnam, totaling over VND800 billion ($35.8 million).

The group was charged by the Hanoi People’s Court for unlawful business practices.

Around February 2014, Wang Hui, 28, was hired by a person known only as Joe to manage an illegal money transfer network in Vietnam. Internet transactions of the Chinese yuan were conducted between over 1,400 accounts in China and a business registered by a Vietnamese woman as Minh Ngoc Investment and Trade Development Ltd.

On average, the company made 300 transfer applications per day and another 300 from China. The largest transfer amounted to CNY230,000 ($35,300).

[Caption]

The offenders at the trial.

Wang Hui coordinated, managed and paid the company's employees. To bypass police, Joe recruited another six Chinese staff for senior positions and paid them a much higher salary than the Vietnamese employees. Wang Hui also recruited 39 Vietnamese workers for VND6 million per month to transfer money via the internet. The team was divided into three shifts and worked 24 hours a day.

According to Article 8 of the Law on Credit Institutions, only organizations authorized by the State Bank of Vietnam may conduct cross border money transactions.

When arrested, the group did not disclose the reason for the money transfers or the recipients. They said they were hired by Joe, whose true identity is yet to be determined by authorities. Police have confiscated ID cards, bank cards, telephone cards and computers that Wang Hui’s group used for the illegal transactions.

The group has allegedly laundered over VND800 billion since June 2014. The court sentenced Wang Hui to 15 months imprisonment and the other six offenders received 14 months and 12 day prison sentences for unlawful business practices.

 
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