Cvs Insurance Subsidiary

Cvs is another safe haven for the corrupting of the nation. The largest source of corruption in China, in fact, comes in the form of money laundering through its subsidiaries. All the businesses in China that do business outside of Chinese law are either profitable or are even subsidized by the Chinese state-controlled banks. The profit margin on these operations is microscopic—certainly not compared to corporate America. This is only partially explained by the number of foreigners who set up businesses in China. Because we are in that country.

Over the past six years, according to the most recent accounts, the total assets of the banks in China were $145 billion. That is roughly $1.2 trillion. And according to the Government Accounting Office, Cvs earns almost 90 percent of the profits for its banking activities.

So is the money being laundered being funnelled through Cvs? And how? In recent weeks, many high-level people from abroad have been to China to buy cars, liquor, and luxury stores, in an endeavor to help local customers save money. That money is then being used to launder wealth in their home countries.

In China, Cvs has been able to easily avoid police scrutiny (this is a lot easier in major metro areas like Beijing, Chongqing, Guangdong, or Shanghai), because the money flows through subsidiaries that actually function like corporate businesses. And what the business and even the employees are actually required to do is report their cash to the bank. That way, you can stay anonymous.

Cvs with the largest foreign subsidiary overseas, for example, is China Semiconductor, currently valued at $12.4 billion. But outside the bank, that same company exists only in name. It is neither owned by a Chinese corporation nor are Chinese investors making at least a profit from their participation in the company. No investors have ever been so transparent in their activities.

The Chinese court system, and even its journalists (which likely wouldn’t be such a bad thing in China), have been on very shaky ground in recent years. This is borne out by reports that some of the companies tried to set up business connections through a set of offshore shell companies. Many were caught, and found to be laundered.

Apparently, there must be a big Ponzi scheme involved in the operation.