State-run broadcaster CCTV aired a report on Wednesday accusing Bank of China (3988.HKG, 601988.SHA) of allowing customers to transfer large amounts of money out of the country in violation of capital controls, South China Morning Post reported. CCTV accused the bank of “blatantly offering money laundering services” and fabricating information through its money transfer platform Youhuitong. Bank of China responded that Youhuitong was part of an experimental but legal pilot scheme launched in 2011. Bank of China, like CCTV, is directly supervised by the State Council, and to release such serious accusations suggests CCTV acquired advance approval. These developments could signal Beijing’s intention to tighten capital controls.
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