Bank cries foul over US$119m note fraud
Print Edition
CHINA’S Bank of Tianjin claimed it has been defrauded of almost US$119 million.
A “risk incident” at a Shanghai branch involved 768 million yuan (US$118.8 million) and was related to its notes business, the bank said in a statement to the Hong Kong stock exchange.
Notes, also known as bills of exchange, are securities issued by financial institutions, often as short-term financing tools, and payable to the bearer.
Financial magazine Caixin said the notes had been sold to the bank as part of a repurchase agreement.
The bank “paid the money when buying the notes, but the notes went missing when the time came to resell,” Caixin quoted people familiar with the matter as saying, leaving the bank unable to recoup its funds.
A number of bank employees who handled the bills had turned themselves in to police, it said.
The bank, which listed in Hong Kong last month, said in its statement that the incident happened “recently.”
It is the third such case in China to come to light this year, and takes the total involved to 5.7 billion yuan.
Agricultural Bank of China, one of China’s biggest lenders, said in January that two of its employees stole notes worth 3.9 billion yuan to invest in China’s stock market, which imploded in mid-2015.
In January, Citic Bank reported a bill-related risk incident in which it had been defrauded of up to 969 million yuan.
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