75 arrested in China for running underground banking

Seventy five people have been arrested in China in the last one month for their alleged involvement in illegal banking activities to the tune of 240 billion yuan (USD 37.8 billion), officials said today.
Officers have also shut down 37 "underground banks," unapproved financial institutions commonly used for money laundering, in a crackdown launched in late August to maintain order in the financial and capital market, the ministry of Public Security said today.
Underground banks have become a key channel for the transfer of illicit money obtained through corruption, online gambling, telecommunication fraud, drug deals and tax evasion, the ministry said, describing the situation as "increasingly arduous and complicated."

Due to end in late November, the crackdown has enlisted help from financial institutions including the People's Bank of China and the State Administration of Foreign Exchanges, state-run Xinhua news agency reported.
A similar campaign launched by the ministry in April uncovered cases involving more than 430 billion yuan.