Underground money houses are mainly distributed in economically developed coastal areas such as Guangdong, Fujian, Zhejiang, Jiangsu and Shandong. Moreover, due to the different geographical environment and market demand, the "management" forms of underground banks in various places are also different, and there are three main types:
Underground money houses with illegal foreign exchange transactions as their main business. This kind of money houses are mainly distributed in Guangdong, Fujian, Shandong and other coastal areas. In Guangdong and Fujian, it is mainly illegal to buy and sell Hong Kong dollars, and in Shandong and other places, it is mainly illegal to buy and sell Korean won and US dollars.
Underground money houses with illegal deposits and illegal lending as their main business. This kind of money houses are found in most provinces of China, especially in Zhejiang, Jiangsu, Fujian and Yunnan provinces, and appear in the form of bidding meetings, Taiwanese business associations and mutual aid associations.
Underground money houses mainly engaged in illegal mortgage and illegal usury. This kind of money houses are distributed in some inland provinces such as Hunan and Jiangxi, including some pawnshops that have been cleaned up and rectified by the state, and they have also turned underground to continue their operations. In many places, such banks are infiltrated by evil forces.
Crime of illegal business operation:
Refers to the business activities that require special administrative permission but are illegally operated without special permission. Illegal business activities mainly involve the following categories: franchising, monopoly goods or other commodities whose operation is restricted by laws and administrative regulations without permission. Buying and selling import and export licenses, import and export certificates of origin and other business licenses or approval documents stipulated by laws and administrative regulations. There is no relevant state department.
Legal basis:
Criminal law of the people's Republic of China
Article 225 Whoever, in violation of State regulations, commits one of the following illegal business operations and disrupts the market order, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also, or shall only, be fined not less than one time but not more than five times the illegal income; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years, and shall also be fined not less than one time but not more than five times for illegal gains or confiscation of property:
(a) without permission, the franchise, monopoly of goods or other goods restricted by laws and administrative regulations;
(2) buying and selling import and export licenses, import and export certificates of origin and other business licenses or approval documents stipulated by laws and administrative regulations;
(three) without the approval of the relevant competent departments of the state, illegally engaged in securities, futures, insurance business, or illegally engaged in fund payment and settlement business;
(four) other illegal business activities that seriously disrupt the market order.