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Fraud-Proof Practice

In China area, traditional paying authorization processes always use the above Big Chop and Small Chop. Whoever is authorized to use these two chops can withdraw all money from your corporate bank accounts. Therefore, according to survey, more than 85 % of  China WFOEs met fraud paying-out issue in 2009. Please see Asia-Pacific Fraud report. We often hear about cases of fraud frequently occurring in China WFOE Enterprises. These cases usually involve cash larceny, cash skimming, inventory larceny, conflicts of interest, bribery, etc. There were several fraud cases even without any track about fraud personnel for withdrawing money from Bank Account due to they use Big Chop and Small Chop which have not  any of  their name shown in the  banking withdrawal document. Fraud Risk Management is imperative when you set up an operation in China.

To adopt Evershine services can safeguard your money in your Bank Account only for authorized paying-out. Our solution have already make necessary internal controls been designed into our web-platform. And wire money to vendors or employees through secured web-banking 3-roles authorization function instead traditional Big Chop and Small Chop. You can handle the approval process at the parent company. Not any individual parties can touch real cash in your bank account. You don’t even need to recruit any in-house accountant or cashier with our Total Outsourced Model.

Our services can reduce the risk of fraud. We designed necessary internal controls into our web-platform that are according to 404 compliance procedures.

For example, all vendors and employees need to be approved through an authorization processes.

Except small petty cash, all payment processes must go through the web-banking 3-roles authorization function before being directly wired to an individual vendor or employee.

In addition, all salary is directly wired to confirmed individual employee bank accounts in order to prevent the existence of ghost accounts or phantom employees.

For an entity with inventory, we periodically arrange physical inventory in your subsidiary, branch or joint venture.

To prevent asset theft, we also use the standard BOM (Bill of Materials) multiplied by production quantity to reconcile the used materials to check if there is any loss.