Ants will not be able to move, heavy punishment!
Since last year, China has begun to comprehensively strengthen controls on foreign exchange purchases and exchanges. On July 1, 2017, the measures for the Administration of large transactions and suspicious transaction reports of Financial institutions officially landed. It marks the end of the period of easing China has enjoyed for a short time since the recovery in foreign exchange reserves. At present, the world political and economic situation is unstable, China is more facing the threat of trade war. Against this backdrop, Chinese demand for remittances abroad is largely concerned that China will further tighten controls on foreign exchange. Last week, the safe issued two consecutive articles, stressing that it would step up its crackdown on foreign exchange violations and criticising 27 typical cases of foreign exchange violations in the form of roll-call briefings. This leads to the realisation that China`s grip on foreign exchange may reach new highs. Overseas Chinese want to go abroad from the remittance, there is almost no way to go.
Two consecutive Foreign Exchange Bureau (safe) focuses on cracking down on cases of non-compliance
Since July 1 last year, China`s measures for the Administration of Financial institutions` large transactions and suspicious transaction reports (hereinafter referred to as the regulations) have been formally implemented. This means that when purchasing foreign exchange, ordinary Chinese citizens should not only continue to bear a limit of not more than US $50,000 per person per year on foreign exchange purchases, but also make remittances out of the country. More attention should be paid to the new policy that "remittances exceeding the equivalent of $10,000 will be counted as large transaction reporting". Not long ago, a Chinese network spread that a Chengdu family had sent tens of thousands of US dollars abroad, which had been rejected by the safe by phone, and that foreign exchange purchased into US dollars had even been returned to RMB. It seems that safe and grass-roots banks have begun to strictly enforce the regulations and strengthen foreign exchange controls on ordinary people.
Last week, safe unexpectedly issued two articles in a row, indicating its determination to control foreign exchange and, at the same time, notifying it of violations of foreign exchange regulations in recent years in the form of a roll call. Not only Alipay, Industrial and Commercial Bank, Bank of Communications and other illegal enterprises and banks were named tragically, ordinary individuals are also listed on the list.
Foreign exchange control rises to an important level
In the article "safe severely investigated and dealt with foreign exchange violations and maintained a healthy order in the foreign exchange market" published in advance (hereinafter "order"), safe gave data: "in the first half of 2018, 1354 cases of foreign exchange violations were investigated and dealt with." Fines reached 345 million yuan, up 19.7 percent year-on-year and 59.5 percent year-on-year. Among them, 455 cases were investigated and dealt with by financial institutions, 340 cases by enterprises and 559 cases by individuals. At the same time, the article also said: "to maintain the stability, continuity and consistency of foreign exchange administrative law enforcement across the cycle, severely crack down on false, fraudulent trading and illegal arbitrage, and other funds" off-to-earth "behavior, and severely crack down on underground banks. Illegal foreign exchange trading platforms and other illegal activities, to maintain a healthy and healthy foreign exchange market order, to maintain national economic and financial security. "
Although this article is short, there are several points worth reading. First, the number of foreign exchange violations and fines in the first half of 2018 rose 19.7 percent year-on-year and 59.5 percent year-on-year. Although there is a lack of authoritative data to corroborate, it is always impossible to say that in 2018, Chinese people suddenly ran into a rush to participate in foreign exchange violations. In the first half of 2018 and the same period last year, the comparison of foreign exchange violations was in the first half of 2018 and in the same period last year. The most obvious policy change is the implementation of the Management measures. The increasing number of cases and the heavier fines may have a direct connection with the wide span of the implementation of the Administration measures to strengthen the attack surface and depth of the foreign exchange violation cases.
Next, the paper "keeping the stability, continuity and consistency of foreign exchange administrative law enforcement across cycles" is proposed in this paper. This is previously rarely used by safe. In part, this shows that China`s current foreign exchange control policy will not change as the times change, and safe`s enforcement will remain consistent.
Finally, the paper links foreign exchange control with maintaining national economic and financial security. At present, to hold the bottom line of financial security has risen to the height of China`s national strategy. The characterization of foreign exchange control in "maintaining national economic and financial security" also shows safe enforcement and control of foreign exchange.
Name the ants and tell them that the movers have been fined 1.16 million.
Immediately after order, safe also published the State Administration of Foreign Exchange case Circular on Foreign Exchange violations (hereinafter referred to as the Circular). This is also the second time since 2018 that safe has reported typical cases of China`s foreign exchange violations.
Reporting and criticizing cases of irregularities is a routine practice for safe, and the announcement is no exception, so it should not be overinterpreted. However, the typical cases selected in this paper, especially those related to individual violators, still have important warning value to the Chinese who need to send money abroad.
A total of 27 cases of violations were collected, and 4 cases were individual violations. Among them, "case 24", "case 25" related to illegal foreign exchange transactions, "case 26" related to third-party platform foreign exchange purchases, "case 27" related to "split foreign exchange evasion". These three types of cases, in fact, point to some of the most commonly used Chinese remittance methods-underground banks, black market transactions, ants moving, and so on.
Ant moving is the illegal method of foreign exchange purchase that almost every Chinese living abroad has heard of, contacted, or even tried. In the era of relatively loose foreign exchange controls, it is true that many Chinese have transferred assets by splitting remittances and even bought homes overseas. But at the moment, it is clear that the ants have become the target of the safe`s strict crackdown.
According to the notice of the State Administration of Foreign Exchange on further improving the management of individual settlement and sale of foreign exchange (hereinafter referred to as the "Circular"), safe and the designated foreign exchange bank with Chinese capital will purchase "more than five different individuals on the same day, after buying foreign exchange separately every other day or for many consecutive days," The transfer of foreign exchange to the same person or institution abroad "is regarded as a split purchase of foreign exchange, that is, the ants move." At the same time, the notice also stipulates that "other individuals who have passed through multi-person trips, multi-frequency circumvention of quota management, separate and sell foreign exchange transactions" are also illegal. In other words, the ants do not have a few people to buy foreign exchange, how long after "security indicators", as long as the bank or foreign exchange agency found suspicious remittances, will be punished according to law. Light circumstances do not handle business, serious are facing fines and other penalties.
In case 27 given in the Bulletin, Mr. Zhao, a North Korean, was from January 2016 to December 2017. Using the annual quota of 55 individuals to purchase foreign exchange, personal assets will be split into foreign exchange and remitted to an offshore account. The illegal transfer of funds will amount to two million four hundred and fifty three thousand one hundred US dollars. This act violates Article 7 of the measures for the Administration of individual Foreign Exchange and constitutes an act of evasion of foreign exchange. According to Article 39 of the regulations on Foreign Exchange Administration, a fine of 1.16 million yuan shall be imposed. "
Zhao`s foreign exchange purchase time span of up to two years, obviously not in a certain period of time concentrated remittance, but is still being "targeted" by safe. It can be seen that safe for individual foreign exchange violations of the intensity of the investigation and handling of strong.
In addition, the notice also criticized a number of missed banks for fines. This means that China not only imposes strict restrictions on individual foreign exchange purchases, but also requires grass-roots banks to strictly enforce the rules when dealing with foreign exchange affairs. Otherwise, it may get itself into trouble. It also criticized and fined Alipay and Tenpay, two mobile payment giants. This means that third-party payers cannot go deep into the tightly controlled foreign exchange business, and Alipay, once a bullish Alipay, has been completely blocked by the way WeChat transfers to foreign exchange.
