Dalian Commodity Exchange released a few days ago that it investigated 45 cases on fund transfer through bucketing and helped its customers recover economic losses of more than CNY 300,000. It investigated a few cases of this kind this year and warned its customers to ensure the safety of the funds on their accounts.
The relevant director of supervision department of DCE said fund transfer through bucketing is typical illegal behavior at futures markets, and with the boost of markets in recent years, transferring the funds on others’ accounts by bucketing has become even more common. The cases involved this kind of illegal behavior are characterized by rapid fund transfer, covert modus operandi and increasing amount of funds transferred, but the gangs committing individual cases leave obvious tracks. DCE has always placed an emphasis on preventing fund transfer through bucketing when making investigation into illegal behaviors. In recent years, based on its experience in investigating daily illegal behaviors, it has formulated punishment provisions and standards for placing a case on file for investigation and prosecution, made investigations into illegal cases and effectively guaranteed the safety of customers’ funds.
Based on some introduction, there are mainly two types of fund transfer cases. One type involves commissioned accounts. Many people commission others to operate their accounts by the way of wealth management, and the funds on their accounts are transferred without the awareness of a trustee. This kind of case is common. The other type is Internet fraud. In such cases some individuals or gangs show off their performance in Internet chat rooms and chat groups or on financial forums to attract investors, and do transactions for investors. When they learn an investor’s password to an account, they will transfer the investor’s fund through bucketing via futures markets.
In order to solve the above-mentioned issues, the relevant head of supervision department of DCE suggests investors should keep their account information secret and increase their awareness of maintaining the safety of their accounts on Internet and protecting themselves, so as not to be cheated. In 2012, for the purpose of urging customers to properly protect their accounts, DCE added the requirements in the process of amending rules and regulations that customers should keep their account safe and prevent others from using their accounts for illegal operation.
In addition, member units may prevent the illegal transfer of the funds of suffered customers and effectively preventing the occurrence of the cases of fund transfer through bucketing, by strengthening the control of the outflow of customers’ funds, as the transfer of the fund on others’ accounts is mainly realized by covering open positions to make profits. This director therefore proposes member units should strengthen the management of fund inflow and outflow, such as setting requirements for the outflow of customers’ funds, limiting the outflow of the profits from covering open positions, preventing fund transfer through bucketing. As for customers who have a good credit rating and really need in fund outflow, they may be allowed to draw funds to increase their funds’ efficiency.
He also said DCE will continue to make thorough investigation into illegal behaviors including fund transfer through bucketing in 2013 with “zero tolerance”. DCE will take strict measures to give punishment to bucketing, influencing market prices and spreading rumors, and investigate and transfer relevant cases, to effectively protect the interests of investors and ensure the stable and healthy development of futures market.
