What is underground banking

To Pan, the outcome was certainly most unfavourable. He had paid Rmb1. He suffered substantially economically. There is always no guarantee that the funds credited to the account in Hong Kong were from a legitimate source. The payer is usually a stranger to the recipient and the recipient will have little if any means to find out the source of the funds. If, as in the above case, the funds originated from a tainted source, the recipient in the position of Pan will have difficulty to raise an arguable defence to the claim by the victim.

It was also likely that, when tainted funds were paid to a Hong Kong bank account as a result of fraud, the Hong Kong Police would freeze the bank account promptly upon the complaint by the victim, pending investigation of money laundering offences. The account holder might be investigated or even arrested by the Police. In the above case, it seems already fortunate for Pan that, as the learned Judge had expressly said at the beginning of the Judgment, he was not in any way implicated in the fraud.

The case is a good news to victims? Does the case mean that the victims of fraud can now easily recover funds from second or even third level recipients? In reality, a victim of fraud has a number of hurdles to overcome. But what if Pan did not admit that his funds came from H2H? Dtodd postmedia. Is there more to this story? Email vantips postmedia. A welcome email is on its way. If you don't see it, please check your junk folder.

The next issue of Vancouver Sun Headline News will soon be in your inbox. We encountered an issue signing you up.

Please try again. This website uses cookies to personalize your content including ads , and allows us to analyze our traffic. Read more about cookies here.

By continuing to use our site, you agree to our Terms of Service and Privacy Policy. Sign up. Start your day with Sunrise, a roundup of B. Answers to the most commonly asked questions here. To read the full version of this content please select one of the options below:. Other access options You may be able to access this content by logging in via your Emerald profile. Rent this content from DeepDyve.

Rent from DeepDyve. However, underground banking has also long been regarded as a conduit for money laundering by criminal organisations and arguably by terrorist networks. It is important to achieve a balance between regulating the underground banking sector in an attempt to reduce the flow of illicit funds, and… Expand. Save to Library Save. Create Alert Alert. Share This Paper. Methods Citations. Figures from this paper.

Citation Type. Has PDF. Publication Type. More Filters. Money laundering and terrorism financing risks posed by alternative remittance in Australia.

People and businesses wishing to transfer money between themselves can do so in a variety of ways.