Chinese Special Ops Crack Down on Illegal Money Exchanges, 846 Arrested

China’s Ministry of Public Security (MPS) has arrested 846 people and shut down 100 underground banks in a nationwide crackdown on illegal money exchanges this year. Officials reported that the operations were linked to transactions worth RMB 80 billion (US$11 billion).

At a press briefing on 13 December, the MPS emphasized the growing prevalence of these illegal money exchanges, locally referred to as huanqiandang, which primarily cater to gamblers seeking high-interest loans.

Post-Pandemic Surge in Illegal Exchanges

Since reopening borders in January 2023, Macau has witnessed a surge in casino visitors, following three years of Covid-19-related closures. Government data reveals that police intercepted nearly 12,000 people engaged in illegal money exchanges in 2023—up 239% from 2022 and 41.3% compared to 2019.

Experts attribute this rise to the decline of junket operations, which previously facilitated high-roller gambling. Gaming law expert António Lobo Vilela described the issue as “the elephant in the room,” citing a $17 billion junket industry loss in 2019.

Wider Impact on Society

Illegal money exchanges have extended beyond Macau’s casinos, contributing to broader criminal activities such as theft, money laundering, and illegal immigration. Peng Peng, executive director of the Guangdong Society of Reform, stressed the need for stricter measures to “protect China’s financial security, tackle corruption, and prevent illegal capital outflows.”

The crackdown aligns with recent legislative changes in Macau. In October, the Legislative Assembly enacted laws criminalizing unlicensed currency exchanges, introducing penalties of up to five years in prison and casino bans of up to 10 years for offenders.