4 arrested for allegedly operating underground bank

Asian Economic News, July 23, 2001

TOKYO, July 18 Kyodo

Tokyo police have arrested a group of four people on suspicion of arranging unauthorized money remittances to China for Chinese nationals in Japan, the police said Wednesday.

Zhang Xiong, a 31-year-old Chinese resident of Tokyo's Shinjuku Ward, and the three others are alleged to have sent a total of 2.48 million yen to a person in the Chinese province of Fujian on behalf of five people over nine occasions from last December through April. Such remittances require a banking license.

The police are continuing their investigations as they suspect the four sent funds totaling roughly 15 billion yen to the province on behalf of some 2,000 people.

They also believe more than 30 other people are involved in the underground banking ring.

The groups' clients are alleged to be mainly Chinese nationals who have entered Japan illegally or who are overstaying their visas.

They are said to have charged commissions of around 0.5-1% of the remitted amount.