Kenneth Rijock

Kenneth Rijock

Tuesday, July 29, 2014

AFFLUENT CHINESE MOVING THEIR UNTAXED WEALTH INTO US EMPLOY COMPLEX SCHEMES



Money laundering of funds that wealthy Chinese nationals do not want to pay taxes on, and which may be criminal proceed specifically bribes ands kickbacks, is being blamed for the rise in US urban real estate prices. Corrupt Chinese PEPs, who have a well-founded fear that their government will seize any domestically-banked assets, export their dirty cash, either through wire transfers done through cooperating bankers, bulk cash smuggling overseas, or placing the cash into a corrupt casino, and taking it out as "profits."

Complex money laundering pipelines are becoming commonplace, to the extent that I noticed this specific diagram in the press. It speaks volumes about how effective non-transparent schemes are being used by all:

Purchasing real estate in the United States

(A) Through a US trust...
(B) managed by a shell corporation from the Cayman Islands...
(C) with a bank account in Luxembourg...
(D) managed by a Swiss banker who does not know who the beneficial owner is.

I would hope that any compliance officer who sees this type of obviously opaque transaction will act accordingly.






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