| Abstract: | Illegal immigration through human smuggling originating from the Fujian Province, China, has become a global issue, affecting at least 30 countries. The empirical research on the financial element of illegal immigration suggests the important role of an underground banking system. This study examines the role of ethnic networks in sustaining the operation of Chinese-operated informal fund transfer systems in the United States. The primary source of data is from in-depth interviews with illegal immigrants in New York City and Philadelphia. The findings show that as opposed to lineage-based networks, the networks based on regional dialect allowed illegal Fujianese immigrants, as well as underground bank proprietors, to take advantage of social capital inherent in the expatriate ethnic community. The high levels of trust between underground bank proprietors and their clientele can be understood as resulting from ethnic solidarity and enforceable trust. These features are found to be troublesome at the community level because the research findings illustrate that a community of high ethnic interactions espouses a deviant culture or norms that encourage widely accepted but illegal practices. |
