31 March, 2016
The Madrid branch of Industrial and Commercial Bank of China (ICBC), the China state-owned commercial bank, was raided by Spanish Civil Guards on 17 February as part of an investigation into suspected money laundering and tax fraud. Six ICBC executives were arrested. The bank's branch was suspected of having engaged in money laundering estimated at €40 million. The Chinese government has requested that the Spanish authorities handle the issue impartially and guarantee the legitimate rights of ICBC. ICBC published a statement on the Shanghai Stock Exchange website stating that its Madrid branch is cooperating with relevant Spanish authorities over the investigation and is operating as normal. ICBC also stated that it requires all its branches to strictly comply with anti-money laundering regulations in countries and regions in which they operate.
For further information, please contact:
Kyle Wombolt, Partner, Herbert Smith Freehills
kyle.wombolt@hsf.com
