According to State Administration of Foreign Exchange (SAFE), since Sep. 1st, all banks in China will be required to submit the record of international transactions made with domestic bank cards to SAFE.
Particularly, international transaction records with more than 1,000RMB will be reported to the government in case of illegal money laundering from 22nd in September.
What Will Be Collected?
❶ Overseas transactions via domestic bank cards at counters or ATMs;
❷ Overseas purchase flow of more than 1,000RMB via domestic bank cards (including both offline and online transactions).
What Will Not Be Submitted?
❶ Oversea transactions and withdrawals via offshore accounts of ICBC (Asia), BOC (Hong Kong), etc.
❷ Transaction records in Alipay and Wechat Wallet.
Why 1,000RMB?
It is reported that recently, overseas illegal transactions grow and spread because of managerial chaos.
There are many cases that some Chinese tourists exchange money via phonily purchase in shops which sell luxury goods like jewelry and watches.
Worse still, they even try to withdrawal a great deal of cash by buying bank cards from others for the purposes of transferring asset.
Banks Are Required to Do This
Suspicions are ongoing that the policy intends to fight against capital outflow, and to largely manipulate RMB exchange rate. In response, SAFE officials say that the new rules are irrelevant to the current foreign exchange situation.
In addition, only banks instead of individuals are required to submit international transaction records to SAFE.
Some experts remind people that if your international transaction records have been submitted for many times(more than 1,000RMB), you will be under a stricter investigation for the suspicion of money laundering.
Tips From HACOS
❶ Don't Be Engaged in Illegal Transactions.
Once your account is suspected to be in money laundering, it will be frozen. What's more, your account will also be implicated if something goes wrong when you help others (individuals or enterprises) transfer money by using your account without knowing the source or purpose of the money.
❷ Less Transaction With Countries At High Risk.
Countries at high risk refers those countries under sanction or with extremely unstable policy or economy.
These countries usually transfer money via the third countries or offshore accounts because they cannot transfer money directly on their own. Thus, it is hard to explain the source and purpose of the cash flow.
❸ Do Not Keep Your Account Long-term Idle
Your account will be more likely to be written off if it has been in a long-term idle. That is, if there are very little transaction in your account, it will be also written off by the bank.
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HACOS,Business Services Solutions Master