Rules on bank cards used abroad tightened
Print Edition
CHINA’S foreign exchange regulator will cap overseas withdrawals using domestic bank cards at 100,000 yuan (US$15,370) per person per year in an effort to target money laundering, terrorist financing and tax evasion.
Individuals who exceed the annual quota will be suspended from overseas transactions for the remainder of the year and an additional year, the State Administration of Foreign Exchange said in a notice posted on its website.
Under the new rules, SAFE will submit a daily list of individuals banned from making overseas bank card withdrawals, and banks must suspend the users by no later than 5pm the same day. Domestic card users will also be barred from withdrawing over 10,000 yuan a day abroad, the authority said.
Since 2003, the quota for overseas withdrawals has been 100,000 yuan per card each year. The new rules can “prevent law breakers from withdrawing a large amount of cash with different cards from different banks,” the authority said.
In 2016, 81 percent of domestic cards saw overseas cash withdrawals of less than 30,000 yuan. Thus, the new rules can meet normal cash needs and curb illegal activities.
The new rules come into effect today, and reporting adjustments must be adopted by banks by April 1, SAFE said.
China has strengthened regulatory oversight of overseas card transactions in the past year, targeting illegal cross-border transfers and money laundering.
In September the authority brought in regulations requiring Chinese banks to report daily their bank card holders’ overseas withdrawals as well as every transaction exceeding 1,000 yuan.
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