The Abnormal Capital Flows Based On Internet

Since 2003, because of the rapid economic growth, the increased international payment surplus year by year, and the RMB appreciation, a large number of hot money inflows into China. Meanwhile,2009 year-round, the investigative office has cracked 195 money laundering cases under the assistance of people's bank, involving 41.88 billion Yuan. The flow of abnormal capital in entity economy, involving the entry of hot money and the outflow of criminal capital, has brought a lot of threat to social and economic security. Generally speaking, there are some traditional channels and path for the entry of hot money and money laundering. After studying the internet payment and e-commerce, we found that abnormal capital can flow based on online payment and internet trans-territory transactions, skirting relevant organization supervision. The abnormal capital flows based on internet is covert and cost low, which increased the difficult of investigation for some authorities.We can use the related equations of hot money inflow and capital flight to estimate the size of abnormal capital flow based on internet trans-territory transactions. In 2009, this size has reached astonishing 130 billion Yuan. If we don't control the flow of abnormal capital, it will produce many adverse effects to economic entity. Then this paper pays main attention on the flow channels and path of abnormal capital. After checking the transaction process on internet and the key links of e-commerce, we get the abnormal capital flow mode. And on this basis, this paper analyzes the characteristics and distinguishing method of internet transactions aimed at abnormal capital flows. At end the paper give some recommendations on controlling and restricting abnormal capital flow.