Chinese foreign exchange regulator, State Administration of Foreign Exchange (SAFE), has decided to cap withdrawals using domestic bank cards to curb money laundering, terrorist financing and tax evasion.
The regulator has capped international withdrawals using the country’s domestic cards to CNY100,000 ($15,356) per year, with a cap of CNY10,000 ($1,535.6) per day.
Go deeper with GlobalData
Furthermore, SAFE has issued a notice calling for the suspension of cardholders who exceed the annual quota, for the remaining period of the year as well as an additional year.
SAFE said: “International experiences have shown that large cash transactions are often associated with criminal activities such as fraud, gambling, money laundering and terrorism financing.
“Some Chinese had been found to have used a large number of ATM cards to withdraw sums of cash overseas that far exceeded what was needed for normal consumption.
“People should not borrow other people’s bank cards or lend them to others to help get around the regulation.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThese new rules follow SAFE’s regulations formed in September 2017 requiring report of all overseas withdrawals along with transactions that involved more than CNY1,000.
