1154: Sean Williams | The North Korea-China-Drug Cartel Connection

Flying Money

The ancient Chinese system of Fei Chen, or "flying money," has evolved into a sophisticated method for discreet money transfers. Sean Williams explains that this system originated during the Tang Dynasty as a way for merchants to avoid the risks of transporting physical currency across borders 1. It operates on a trust-based network, similar to the Arab hawala system, where money doesn't physically move, making it nearly undetectable by authorities. This system has persisted through centuries, adapting to modern needs and remaining prevalent in global Chinese communities 2.

It's early banking, basically. It's a promissory note, very similar to what we even do today, basically.

--- Sean Williams

Despite attempts by the Chinese government to control it, flying money remains a vital part of informal economies, especially among the Chinese diaspora.

   

Diaspora Impact

The Chinese diaspora has significantly influenced global organized crime and capital flight. Sean Williams notes that historical waves of migration have spread Chinese communities worldwide, often accompanied by informal money networks and organized crime 3. These networks facilitate capital flight and money laundering, with China emerging as a key player in laundering drug trafficking proceeds in the Western hemisphere 4.

The U.S. state Department estimates something like 154 billion in illicit funds a year passed through China.

--- Jordan Harbinger

While the Chinese government publicly opposes such activities, internal corruption and economic incentives often allow these practices to continue unchecked.