How Xiaomi laundered money and paid for it

$725 million company’s bank accounts seized in India

Xiaomi demonstrates that it conducts a fairly transparent business, and the company itself has not been a participant in serious scandals until recently. The more interesting when they appear. Yesterday it became known that the company is not so infallible anymore and an “entertaining” story happened to it in India on the topic of illegal money laundering and concealment of income.

Rather, the fact that she was suspected of such acts was known before, but it seems that the Indian authorities have moved from suspicion to accusations and repressive measures. The Indian authorities have arrested accounts of Xiaomi Technology India Private Limited for a total of $ 725 million, located on the accounts of Indian banks. This was done after an investigation revealed that the company made illegal money transfers to foreign organizations, passing them off as royalties in order to hide income and reduce the tax burden.

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In particular, she transferred large amounts of funds to the accounts of three foreign companies under the guise of paying royalties. At the same time, it is believed that all illegal money laundering operations took place with the consent and at the behest of the main Chinese office. For its part, Xiaomi denies the illegality of the operations and states that all its actions are transparent and legal.

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Source: asia.nikkei

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