UnionPay is a Chinese government backed bankcard company. It is currently being used by thousands to smuggle billions of dollars into other countries and the special region of Macau. Macau is the only place in or around China where gambling is legal. This is one of the main places where billions of dollars are being illegally moved to.
The daily limit of money allowed to be moved out of the country is 3,200 USD, but people are ignoring this and moving thousands of dollars at a time out of China. People use pawn shops as laundering bases where they receive their money using the title of “general sale”.
Authorities in Macau are turning a blind eye (or not so blind) to this activity as it is bringing in billions of dollars to their casinos and the Macau economy. So why isn’t the Chinese government cracking down on this illegal activity as they do with all other illegal activity. Well the answer may lie in Macau’s economy. 80 percent of the city’s revenues come from gambling, and stopping this illegal money transferring may cripple the city’s economy. It will be interesting to see how China deals with this problem.
Source: Reuters UK