Research On Supervising And Controlling Abnormal Capital Flows

In recent years, the flow of funds in the international anddomestic markets has become increasingly fast and increasingly toenormous size with the economic development. Frequentlarge-scale capital flow, to some extent, promote the developmentof economy. But the abnormal flow of funds can also encourage theoccurrence of crime and destroy the economic and financialstability, even cause the economic crisis. The1997Asian financialcrisis is an example. With the development of science andtechnology, the innovation of financial tools, there exists anincreasingly incidence of abnormal capital flow which is not easy tobe found. It increases the difficulty of capital regulation andreduces the efficiency of supervision.This paper researches mainly from two aspects: the efficiencyof abnormal capital flow regulation and the level of abnormalcapital flow control. Summarized as following: First of all, it analyzed the abnormal capital itself and dividedthe abnormal capital into three kinds. There are money laundering,hot money, and flight capital. Also it analyzed there three kinds ofcapital and researched the relationship and difference betweeneach of them to make the abnormal capital category clear.Secondly, the research of the abnormal capital regulationefficiency was carried out from money laundering, hot moneycapital, flight capital respectively. According to their respectivecharacteristics, it analyzed the deficiency of the existingmonitoring and put forwards effective regulation approach. The firstone was putting forward method combined with report system toimprove the regulatory process in order to increase the efficiency ofmonitoring, which is based on the defects of the current use of largeand suspicious transactions report in monitoring the moneylaundering. The second one was putting forward departmentassociation research ideas according to the current situation of hotmoney, the information isolation and poor regulation. The third onewas putting forward the comprehensive regulation and eliminationof regulation limbo method according to the vacuum situation ofregulating flight capital.Then, this paper came up with methods which measured theChinese short-term capital flows form the perspective ofreasonable and illegal contact channels. Referring to the reserviormodel, the capital flow was divided into five kinds of measure range,and the corresponding measures which control short-term capitalflow and the velocity of train has been proposed. After studying theshort-term capital inflows which have large effect on the economy, it set up matching relationship between the combination of thoughtand way of short-term capital flows. And, it forecast the annuallevel of short-term capital flow and abnormal situation in China,presented some suggestions of short-term abnormal capital flow inChina on the basis of analyzing and counting Chinese data. Finally,it proposed some suggestions about improving the disadvantages ofabnormal capital regulation, and analyzed the existing problems inthe study and the need to be further improved, and the futuredevelopment was prospected.This paper is sponsored by the NNSF of China<Analysis ofillegal public servants money laundering and the network topologyof money laundering>(Granted NO.71273159) and the Ministry ofeducation of humanities and social sciences planning project<Correlation analysis of transfers of ill-gotten gains and the typesof upstream economic crime by illegal public servants>(GrantedNO.10YJA630182).