U.S. authorities 'in Bank of China probe'


The Bank of China is one of the mainland's largest, and has its name on Hong Kong's tallest building (center)

HONG KONG, China -- The Bank of China is being investigated by U.S. authorities at a time when the bank has removed several top executives, according to a report.

The Office of the Comptroller of the Currency is investigating the U.S. activities of the Bank of China, The Wall Street Journal stated Monday, citing an unnamed source "close to the investigation."

The bank,China's main foreign-exchange bank, has branches in New York and Los Angeles. The investigation by the OCC, which is part of the Treasury Department, goes beyond regular audits, according to the newspaper.

Although the bank refused to comment on the investigation, there have been several key personnel changes.

Former Bank of China President Wang Xuebing was removed last week from his positions as chairman of the China International Capital Corp., an investment bank joint venture with Morgan Stanley, and as CEO of state-run China Construction Bank.

Wang 'removed' from CCB post

Wang, a protégé of China's Premier, Zhu Rongji, is being replaced by Zhang Enzhao, the deputy president of China Construction Bank.

The bank would only confirm that Wang has been "removed," with no explanation.

Also on Monday, the Financial Times reported that he is under investigation by the Chinese government for alleged "economic wrongdoings."

Wang was transferred to the China Construction Bank from the Bank of China at the start of 2000.

In September 2000, he stated publicly that reports he was under investigation for his time at the BOC were irresponsible.

When asked if he knew of any financial problems at the BOC's New York branch, which he ran from 1988 to 1993, he said "No."

Over the past two years, senior BOC officials have been removed from posts in New York, Hong Kong and Beijing.