Visit China

Question:

I believe that money-laundering schemes work in this way, if I correctly remember the descriptions I’ve read of such techniques.  Buying high-ticket items for cash is one fairly efficient way of hiding where the money came from.  Perhaps LV realizes this and is wary. Perhaps someone is trying to take advantage of Chinese tourists (or people who look like Chinese tourists) for some sort of money-laundering scheme. Those ultimately behind it may not be Chinese at all, although it’s impossible to really know.  Chinese tourists would probably be easy marks because they would be in a very foreign environment and thus would be likely to implicitly trust other people who look Chinese without asking too many questions. I seriously doubt that LV would refuse to sell a client any of their merchandise in any amount if they did not suspect, as you do, that something fishy is going on.  Insisting on a credit card is one way to ensure that the money is traceable, and that no counterfeit bills are used, so I can understand that. I suppose the counterfeit possibility is real, too.  Perhaps tourists are less likely to recognize bills as counterfeit. It all sounds very weird.   — Anthony

– Hide quoted text — Show quoted text -> My Chinese-descent parents and I were walking up the Champs-Elysees > the other week, and were approached by a well-dressed Mandarin-speaking > couple, who asked us to go into Louis Vuitton and buy them a couple of > bags, because LV would only sell them one item each. > They showed us the items in a catalogue, handed us a wad of cash (about > 8000FF, IIRC), and hid around the corner, saying they didn’t want to be > seen by the shop assistants. > We naive three went in and promptly forgot exactly which items we were > there for. I think we were dumbstruck by the almost 100% Chinese > appearance of the customer population in there. We then asked to see a > catalogue, and were told we couldn’t, unless we had already bought > something. > Already feeling queasy at being scruffy (and I mean SCRUFFY) tourists > in LV, we realised that the prices the couple quoted us were Tax-free, > and we didn’t have our passports with us. So we left and gave the cash > back. We later on were approached by aonther couple, but we kept right > on > walking. > Anyway, we later met with another Chinese-descent couple from our coach > tour group, who said the same thing happened to them, but when they > tried to pay cash, they were told only the first 2000FF can be in cash, > the rest must go on their credit card. At which point they aborted the > transaction. > Now that I think about it for more than half a second, it seems that > something fishy is going on here. I can’t quite put my finger on it. > It could be that: > – the cash is counterfeit, so either our credit cards or the > French treasury bear the brunt of these purchases, > – there is some weird LV importation racket going on in China, > – Chinese people are bizarre, > – LVMH is bizarre. > Anyone care to comment? > — > Chris Kuan, BHP Information Technology > "The fools must be dealt with, however."

Response:

- Hide quoted text — Show quoted text ->I believe that money-laundering schemes work in this way, if I correctly >remember the descriptions I’ve read of such techniques.  Buying high-ticket >items for cash is one fairly efficient way of hiding where the money came >from.  Perhaps LV realizes this and is wary. >Perhaps someone is trying to take advantage of Chinese tourists (or people >who look like Chinese tourists) for some sort of money-laundering scheme. >Those ultimately behind it may not be Chinese at all, although it’s >impossible to really know.  Chinese tourists would probably be easy marks >because they would be in a very foreign environment and thus would be likely >to implicitly trust other people who look Chinese without asking too many >questions. >I seriously doubt that LV would refuse to sell a client any of their >merchandise in any amount if they did not suspect, as you do, that something >fishy is going on.  Insisting on a credit card is one way to ensure that the >money is traceable, and that no counterfeit bills are used, so I can >understand that. >I suppose the counterfeit possibility is real, too.  Perhaps tourists are >less likely to recognize bills as counterfeit. >It all sounds very weird.

That it does.  It might also be a way for a local to get around the VAT tax, but seems like a lot of trouble to go through for a 2000ff or 8000ff item.  Probably a combination of a lot of reasons.

Response:

My Chinese-descent parents and I were walking up the Champs-Elysees the other week, and were approached by a well-dressed Mandarin-speaking couple, who asked us to go into Louis Vuitton and buy them a couple of bags, because LV would only sell them one item each. They showed us the items in a catalogue, handed us a wad of cash (about 8000FF, IIRC), and hid around the corner, saying they didn’t want to be seen by the shop assistants. We naive three went in and promptly forgot exactly which items we were there for. I think we were dumbstruck by the almost 100% Chinese appearance of the customer population in there. We then asked to see a catalogue, and were told we couldn’t, unless we had already bought something. Already feeling queasy at being scruffy (and I mean SCRUFFY) tourists in LV, we realised that the prices the couple quoted us were Tax-free, and we didn’t have our passports with us. So we left and gave the cash back. We later on were approached by aonther couple, but we kept right on walking. Anyway, we later met with another Chinese-descent couple from our coach tour group, who said the same thing happened to them, but when they tried to pay cash, they were told only the first 2000FF can be in cash, the rest must go on their credit card. At which point they aborted the transaction. Now that I think about it for more than half a second, it seems that something fishy is going on here. I can’t quite put my finger on it. It could be that: – the cash is counterfeit, so either our credit cards or the French treasury bear the brunt of these purchases, – there is some weird LV importation racket going on in China, – Chinese people are bizarre, – LVMH is bizarre. Anyone care to comment? — Chris Kuan, BHP Information Technology "The fools must be dealt with, however."

Response:

My Chinese-descent parents and I were walking up the Champs-Elysees the other week, and were approached by a well-dressed Mandarin-speaking couple, who asked us to go into Louis Vuitton and buy them a couple of bags, because LV would only sell them one item each. They showed us the items in a catalogue, handed us a wad of cash (about 8000FF, IIRC), and hid around the corner, saying they didn’t want to be seen by the shop assistants. We naive three went in and promptly forgot exactly which items we were there for. I think we were dumbstruck by the almost 100% Chinese appearance of the customer population in there. We then asked to see a catalogue, and were told we couldn’t, unless we had already bought something. Already feeling queasy at being scruffy (and I mean SCRUFFY) tourists in LV, we realised that the prices the couple quoted us were Tax-free, and we didn’t have our passports with us. So we left and gave the cash back. We later on were approached by aonther couple, but we kept right on walking. Anyway, we later met with another Chinese-descent couple from our coach tour group, who said the same thing happened to them, but when they tried to pay cash, they were told only the first 2000FF can be in cash, the rest must go on their credit card. At which point they aborted the transaction. Now that I think about it for more than half a second, it seems that something fishy is going on here. I can’t quite put my finger on it. It could be that: – the cash is counterfeit, so either our credit cards or the French treasury bear the brunt of these purchases, – there is some weird LV importation racket going on in China, – Chinese people are bizarre, – LVMH is bizarre. Anyone care to comment? — Chris Kuan, BHP Information Technology "The fools must be dealt with, however."

Response:

I believe that money-laundering schemes work in this way, if I correctly remember the descriptions I’ve read of such techniques.  Buying high-ticket items for cash is one fairly efficient way of hiding where the money came from.  Perhaps LV realizes this and is wary. Perhaps someone is trying to take advantage of Chinese tourists (or people who look like Chinese tourists) for some sort of money-laundering scheme. Those ultimately behind it may not be Chinese at all, although it’s impossible to really know.  Chinese tourists would probably be easy marks because they would be in a very foreign environment and thus would be likely to implicitly trust other people who look Chinese without asking too many questions. I seriously doubt that LV would refuse to sell a client any of their merchandise in any amount if they did not suspect, as you do, that something fishy is going on.  Insisting on a credit card is one way to ensure that the money is traceable, and that no counterfeit bills are used, so I can understand that. I suppose the counterfeit possibility is real, too.  Perhaps tourists are less likely to recognize bills as counterfeit. It all sounds very weird.   — Anthony

– Hide quoted text — Show quoted text -> My Chinese-descent parents and I were walking up the Champs-Elysees > the other week, and were approached by a well-dressed Mandarin-speaking > couple, who asked us to go into Louis Vuitton and buy them a couple of > bags, because LV would only sell them one item each. > They showed us the items in a catalogue, handed us a wad of cash (about > 8000FF, IIRC), and hid around the corner, saying they didn’t want to be > seen by the shop assistants. > We naive three went in and promptly forgot exactly which items we were > there for. I think we were dumbstruck by the almost 100% Chinese > appearance of the customer population in there. We then asked to see a > catalogue, and were told we couldn’t, unless we had already bought > something. > Already feeling queasy at being scruffy (and I mean SCRUFFY) tourists > in LV, we realised that the prices the couple quoted us were Tax-free, > and we didn’t have our passports with us. So we left and gave the cash > back. We later on were approached by aonther couple, but we kept right > on > walking. > Anyway, we later met with another Chinese-descent couple from our coach > tour group, who said the same thing happened to them, but when they > tried to pay cash, they were told only the first 2000FF can be in cash, > the rest must go on their credit card. At which point they aborted the > transaction. > Now that I think about it for more than half a second, it seems that > something fishy is going on here. I can’t quite put my finger on it. > It could be that: > – the cash is counterfeit, so either our credit cards or the > French treasury bear the brunt of these purchases, > – there is some weird LV importation racket going on in China, > – Chinese people are bizarre, > – LVMH is bizarre. > Anyone care to comment? > — > Chris Kuan, BHP Information Technology > "The fools must be dealt with, however."

Response:

- Hide quoted text — Show quoted text ->I believe that money-laundering schemes work in this way, if I correctly >remember the descriptions I’ve read of such techniques.  Buying high-ticket >items for cash is one fairly efficient way of hiding where the money came >from.  Perhaps LV realizes this and is wary. >Perhaps someone is trying to take advantage of Chinese tourists (or people >who look like Chinese tourists) for some sort of money-laundering scheme. >Those ultimately behind it may not be Chinese at all, although it’s >impossible to really know.  Chinese tourists would probably be easy marks >because they would be in a very foreign environment and thus would be likely >to implicitly trust other people who look Chinese without asking too many >questions. >I seriously doubt that LV would refuse to sell a client any of their >merchandise in any amount if they did not suspect, as you do, that something >fishy is going on.  Insisting on a credit card is one way to ensure that the >money is traceable, and that no counterfeit bills are used, so I can >understand that. >I suppose the counterfeit possibility is real, too.  Perhaps tourists are >less likely to recognize bills as counterfeit. >It all sounds very weird.

That it does.  It might also be a way for a local to get around the VAT tax, but seems like a lot of trouble to go through for a 2000ff or 8000ff item.  Probably a combination of a lot of reasons.

Response: