Counterfeit Yuan Seized in China—684 Million
Close to twice as much counterfeit money was seized across China this year compared to last, according to a September report in the Beijing Morning Post.
Public security organs seized 684 million counterfeit RMB (US$93.7m), with the percentage of small-denominations and coins growing to between four and six times since 2005.
The report said that counterfeit currency making has new elements: it originates from key areas in Eastern and Central China, and from there radiates across the country along the main transportation routes.
The counterfeit currency is forged in Guangdong Province, processed and stored in Anhui, Henan and Hunan provinces, and circulates in the capitals where population mobility and cash usage are great, the report said. Then, it spreads to the surrounding areas and Central and Western China, as well as farming areas, mountain areas, minority regions, and border regions.
In addition, the report says, the suspects have become more professional. They group together relatives and fellow townsmen and form "industrial chains" that are composed of relatively stable personnel with individual responsibilities. Generally, the main suspect within the family would buy large amounts of counterfeit currency from Guangdong and assign them among the group. Then, individuals either sell them or spend them around the country.
A spokesperson for the “09 Action” campaign, a national anti-counterfeiting program launched in January 2009 by the Ministry of Public Security, said that spending counterfeit money mainly takes the form of fraudulently asking for change in suburban areas, targeting peddlers and markets.
Most counterfeit currency is in bills of large denominations of several hundred yuan. Recently though, bills of small denominations and coins have also started to increase.
Read the original Chinese article.