'Black banks' targeted in latest anti-graft crackdown

Authorities have opened a new front in the ongoing cleanup campaign by targeting underground lenders and illegal overseas currency transfers. Zhang Yan reports.

The central government is stepping up its anti-graft drive by cracking down on illegal lending and money-laundering operations in a bid to prevent outbound flows of stolen assets.

The Ministry of Public Security says "black banks" and illegal currency exchanges have facilitated the flights of a number of former government officials and senior managers of State-owned companies accused of corrupt activities. Most have absconded to popular destinations, such as the United States and Australia, where a lack of bilateral extradition treaties and differences in international law and legal process ensure they are safe from extradition.