The most prosperous time for underground banks in Cambodia was from 2016 to 2019 when $100-$200 billion was transferred from China every year instead of being transferred through formal banks. In other words, up to $200 billion was siphoned from China and out through Cambodia every year.
In 2018 there were about $200 billion, of which around $170 billion was related to online gambling. This year there will be a lot less, only around $30 billion, due to the ban on online gambling.
At the time of writing there are around 300,000 Chinese people in Cambodia and the annual capital exchange with the country is around $10 billion dollars. Additionally there are around $20 billion Vietnamese remittances from Phnom Penh to China.
Why are Vietnamese companies exchanging so much? Because it is not possible to remit directly to China from Vietnam. The only way to transfer US dollars to Phnom Penh is by bus using the Cambodian underground banks.
Among Cambodian banks, Sun City has traded the most, with nearly $100 billion at its peak. The second place is held by other banks who transferred an estimated $1 billion, but now it is much less.
There is a big difference between licensed Cambodian banks and underground banks. Banks like ABA must deposit at least $75 million to the National Bank to ensure financial security for their customers.
To acquire a banking license with the National Bank, a bank needs to deposit only $50,000, and underground banks do not deposit the money to the National Bank, so it is easy for them to cheat money. For example, if a customer wants to exchange $1 million US dollars, the customer must first transfer RMB. If the customer does not, they may be scammed.
Because some underground banks have been operating for many years and have a good reputation, customers often trust them. Now that they can no longer continue operations, and customers are unaware, some of them are using this accumulated reputation to scam their customers, and disappear without a trace when they receive the money changing their names to hide easier. They are stealing large sums enough to live the rest of their lives without spending it.
The risks of using underground banks is now higher than before. This year the market has taken a big hit, and underground banks have closed down in large numbers. Many of them are still in debt. At the end of last year, there was a Chinese banker who cheated several of his colleagues and ran away with $3.5 million dollars.
How do Cambodian banks make money? It depends on the exchange rate difference. For example, if you want to remit $10,000 dollars, they will transfer ¥69,500; if you want to remit ¥70,000 by transferring $10,000 dollars to yourself, you will make ¥500 profit. If you make $300,000 dollars a day, the profit will be ¥15,000. If you calculate it in 24 days a month, the profit will be ¥360,000 and the annual profit ¥4.32 million.
When the business of a well-known bank in Phnom Penh was at its peak, it was estimated to have a daily turnover of ¥20-¥50 million, profiting ¥200,000-¥500,000, and an annual gross profit of about ¥100 million. After one year, there may be ¥20-¥30 million frozen. If the two are offset, it will still make about ¥70 million, but if too much is frozen, say ¥100 million, it will take more than a year to make the money back.
Therefore, the most feared thing in an underground bank is freezing, but it is inevitable. Previously there was a bank that operated for a year and was frozen at ¥4 million. That year, it only made ¥4 million, which is the equivalent of not making any money for one year. In the end, it had to be closed.
At the end of 2018, a few people from Zheijang who worked as bankers began working with online gambling, and their profits were astonishingly high. It is said that they made over ¥1 billion in three or four years. When the Chinese police tracked down on and arrested online gamblers they also convicted them for operating illegal casinos.
The Chinese take big risks doing money, 90% are losing. The local Cambodians rarely lose money because Cambodians run the underground banks, they don't need an account. The locals do a good job and their monthly profits can reach $200,000-$500,000 dollars. The Chinese have accounts, and once frozen, they may lose their money.
Due to the joint suppression operations by Cambodia and China, and the Chinese government's strict control of people suspected of online gambling traveling abroad, Cambodia's online investment has declined. Online operations are now very strict, and account freezing is common, and underground banks will become more difficult to operate in the future.
However, now more than ever, companies are starting to use cryptocurrencies that are hard to regulate.
Underground banks scam customers as Chinese gambling money dries up
- Bong Burgundy
- A Moment of Clarity
- Reactions: 281
- Posts: 2494
- Joined: Sun Oct 29, 2017 12:20 pm
- Location: K440 Channel 4 News
Underground banks scam customers as Chinese gambling money dries up
Bringing the news. You stay classy, nas, Cambodia.
I cant find the thread about aba having problems so I post here always. I know for a FACT that ABA cant afford to pay there bills at the moment. There are court cases cuming also. Will they be like the the cases that brout down Mekong bank?
Where do the wealthy Cambodians keep their money ?
Not everyone has access to off shore accounts.
If for example they had made a couple of million from land sales, would they put money in the bank or keep is as cash in their house safe ?
Not everyone has access to off shore accounts.
If for example they had made a couple of million from land sales, would they put money in the bank or keep is as cash in their house safe ?
I refuse to go out with nothing more than a whimper followed by a small farting sound and a shit stain on my bed sheets..
Just thought I'd share that with you.
Just thought I'd share that with you.
They will keep the cash and other valuables hidden deeb inside their house, they still don't trust the banks here for their bulk savings, afaik.
Aba cant aford to pay their bills?
Total bs!
Troll!!
Total bs!
Troll!!
Rich people don't splash out at Vito, or any nightclub for that matter, that's for losers. Rich people earn money from losers at nightclubs who pay money to drink massively overpriced drinks, dance badly, splurge on drugs & make hand signals at each other trying to show they're so happy with their miserable existence. But I might be wrong.Guest wrote: ↑Mon Sep 07, 2020 12:40 pmKTV?
They're not the type to splash out at Vito?
Meum est propositum in taberna mori,
ut sint Guinness proxima morientis ori.
tunc cantabunt letius angelorum chori:
"Sit Deus propitius huic potatori."
ut sint Guinness proxima morientis ori.
tunc cantabunt letius angelorum chori:
"Sit Deus propitius huic potatori."
- Playboy
- 20,000 Posts; I need professional help !
- Reactions: 288
- Posts: 24827
- Joined: Fri Dec 12, 2003 6:30 pm
- Location: Hotel K: Sector ZZ9 Plural Z Alpha
- Contact:
The rich might not waste their money at Vito et cetera, but their spoilt offspring have no qualms about showing face and splashing the cash in such places
"We, the sons of John Company, have arrived"
-
- I've got internet at work
- Reactions: 2
- Posts: 326
- Joined: Thu Jul 17, 2008 8:20 pm
Somebody starts a rumor like this it may entail a lawsuit for libel. So better be careful. FACT(s) - show them!!!!Guest wrote: ↑Sun Sep 06, 2020 8:38 pmI cant find the thread about aba having problems so I post here always. I know for a FACT that ABA cant afford to pay there bills at the moment. There are court cases cuming also. Will they be like the the cases that brout down Mekong bank?
This why you posted as a guest?
-
- Similar Topics
- Replies
- Views
- Last post
-
-
Cambodia's airport dreams stall as Chinese money dries up
by Bong Burgundy » Mon Feb 26, 2024 7:22 am » in Cambodia News - 2 Replies
- 628 Views
-
Last post by rogerrabbit
Mon Feb 26, 2024 7:52 pm
-
-
-
Chinese online gambling operator surrenders after 2 years on the run in Cambodia and Philippines
by Bong Burgundy » Wed Sep 16, 2020 6:12 pm » in Cambodia News - 2 Replies
- 1441 Views
-
Last post by upstage2
Thu Sep 17, 2020 7:48 am
-
-
-
Chinese pair who fled quarantine are working for online gambling company
by Bong Burgundy » Sun Sep 20, 2020 1:39 am » in Cambodia News - 2 Replies
- 1977 Views
-
Last post by chili cat
Sun Sep 20, 2020 10:09 am
-
-
-
Chinese online gambling companies return, trafficked workers are committing suicide
by Bong Burgundy » Fri Jul 03, 2020 1:12 am » in Cambodia News - 1 Replies
- 2021 Views
-
Last post by skitch
Fri Jul 03, 2020 5:06 am
-
-
-
Chinese student in Singapore held captive in Cambodia for ransom after falling for scam call
by Bong Burgundy » Tue Jun 13, 2023 7:41 pm » in Cambodia News - 0 Replies
- 865 Views
-
Last post by Bong Burgundy
Tue Jun 13, 2023 7:41 pm
-