Navigation * Home / News / China cracks down on banks' capital controls breaches China cracks down on banks' capital controls breaches 28 June 2007. The Chinese foreign exchange regulator has punished ten international banks including Standard Chartered, HSBC and Citibank for breaches of capital controls, it has been reported. The unspecified punitive measures from the State Administration of Foreign (SAFE) Exchange were related to charges that the banks had assisted "speculative foreign capital to enter the country disguised as trade or investment", according to a report in British daily the Financial Times. Meanwhile, a further 19 domestic banks have also been reprimanded over the offences, including China Construction Bank, Bank of China, Agricultural Bank of China and Bank of Communications.Deng Xianghong, SAFE's deputy director, said that the influx of illegally channelled money had had a "serious effect on healthy economic development and government efforts to control growth." None of the Chinese banks named have commented
on the developments, although both HSBC and Standard Chartered confirmed
that they had been subject to inspections by SAFE.
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