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"Clear Rules and Recognize Risks" Case - Revealing Fraudulent Behavior in the Name of Financing

Anti-money laundering refers to the prevention of concealing and concealing drug crimes, organized crimes of a mafia nature, terrorist crimes, smuggling crimes, corruption and bribery crimes, crimes of disrupting financial management order, financial fraud crimes and other criminal proceeds and their proceeds through various means. The source and nature of money laundering activities, and relevant measures are taken in accordance with the Anti-Money Laundering Law, the Anti-Money Laundering Guidelines for Securities Companies and other regulations.


Since July 2014, the Anti-Money Laundering Department of the People's Bank of China has successively received suspicious transaction reports from a number of banks regarding "Yucheng-related" companies and related individuals. After investigation, the anti-money laundering department of the People's Bank of China found that there were close financial transactions between multiple accounts related to Yucheng Financial Leasing Co., Ltd., and also had close connections with Jinyirong (Beijing) Network Technology Co., Ltd. (ezubao), a subsidiary of Yucheng Group, and Shanghai Yubao There was an upstream and downstream transaction relationship between Shen Financial Information Services Co., Ltd., and the fund transaction behavior was inconsistent with the company’s business background and personal identity information, so relevant clues were reported to the public security department. Investigation by the public security department found that Ding and others used a number of "Yucheng-related" companies, the "Ezubao" online financial platform, Zhima Financial platform, etc. to fabricate false financial leasing projects in the name of transferring debts for financial leasing projects, and Promote attractive publicity to the public through public media such as television and the Internet, and then conduct illegal fund-raising through financial platforms. As of the incident, the amount of funds raised exceeded 70 billion yuan. As of March 2017, the public security department has arrested more than 200 suspects, 71 of whom have been transferred to the procuratorate for prosecution on charges of illegally absorbing public deposits and fund-raising fraud.


As the main channel for financing in modern society, finance is not only the core of the modern economy, but also a high-risk area and core link for money laundering. Among them, the securities market has increasingly become a high-risk area for money laundering due to its characteristics such as numerous participants, high liquidity, large transaction scale, rapidly changing supply and demand relationships, complex price formation mechanisms, diverse trading varieties, and advanced trading methods. Investors should be more vigilant and avoid being tempted by so-called "huge profits" and "high interest rates" and falling into the trap of money laundering or even fraud.



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