Money laundering through online stores: the mechanism through which billions of dollars have passed

Money laundering criminals have used some of China's leading online shopping sites to transfer billions of dollars to offshore gambling sites, authorities have revealed.

Those who wanted to evade strict control of Chinese laws, such as betting on offshore sites, placed false orders on shopping sites, including Pinduoduo, China's second-largest user platform. An amount was then credited to their accounts.

In recent months, several law enforcement agencies across China have announced arrests in a number of cases, claiming that at least two billion dollars have been laundered on the site. Offshore gambling through these fake e-commerce purchases.

In one case, police in the eastern city of Wuxi found that counterfeit $ 600 million packages had been introduced into the tracking systems of courier companies by those inside the company to complete the transaction. ii of false e-commerce. Many of the same package tracking numbers have appeared in money laundering cases in two other Chinese cities.

Ni Shiyuan, a Wuxi police officer, said the government should “urge related platforms, especially new social e-commerce platforms, to strengthen internal controls.” Pinduoduo is the most famous social e-commerce company.

Thus, a Pinduoduo spokesman said that “gambling unions operating under false pretenses on e-commerce platforms are a problem for the entire industry”. The company said it had sent more than 1,000 complaints to authorities since 2019, leading to the arrest of more than 200 suspects.

Pinduoduo also said that some players came to his offices to ask for their money back. “Because gambling is illegal in China, their cases have been sent to the police for further investigation,” the spokesman said.

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