Chinese banks suspend money transfer scheme after PBoC probe

Fortune

Some of China’s largest banks have temporarily suspended a scheme that allowed customers to send large sums of money to relatives outside the country, getting round official capital controls, the Wall Street Journal reported Tuesday.

Their move comes after the Chinese central bank, the People’s Bank of China, started to look into claims by state TV broadcaster China Central Television that the scheme was illegal.

The issue expresses the dilemma faced by the Chinese authorities as they pursue apparently conflicting policy goals.

On the one hand, they want to integrate the Chinese financial system more with the rest of the world, hoping to channel investment and spending more efficiently than the centrally-planned Chinese economy has done in the past. On the other, the government, which is in the middle of a high-profile anti-corruption campaign, wants to stop officials moving assets abroad, especially if it suspects those assets have been acquired…

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