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Simple question: when some invests his corruption money in US, doesn't it automatically become "public" and hence traceable? For example, if you buy a house for
by sytelus 10y ago
Simple question: when some invests his corruption money in US, doesn't it automatically become "public" and hence traceable? For example, if you buy a house for X dollars in US then shouldn't Chinese government be able to easily trace you down? My understanding was that so called "black" money stays black only as long as you use it in form of cash, not investments.
- pjc50 10y agoTraceable to whom or what, though? If you've got enough money it's easy for the registered owner of the house to be e.g. a Cayman Islands company with anonymous directors.
- webmaven 10y ago> when some invests his corruption money in US, doesn't it automatically become "public" and hence traceable? Keep in mind that these RE investments are also a form of "rainy day" bolthole, ie. if you have to flee on short notice you land in SF, pick up the documents for the new identity you set up a few years ago, and move into one of the places you now own (none of which are traceable to your original identity). The fact that your new identity is now "on the books" is a feature, not a bug.
- angry_octet 10y agoNo, money is frangible. The money might be sitting in a US bank account seemingly unspent, but the company may have incurred a 'debt' for which that sum is locked as a security for a loan another party had. Or the company may have rental or production expenses that siphon money to another entity. Any number of ways. Also, the US government wouldn't normally exchange taxation (transfer taxes) with the Chinese, so it wouldn't be public.