On May 3, Beijing time, the General Office of the people`s Bank of China issued a circular on further clarifying matters relating to the management of overseas securities investment of qualified domestic institutional investors in the RMB, which shall come into effect as of the date of publication.
The notice clearly points out that RMB qualified investors who carry out overseas investment shall not remit RMB funds out of the country to purchase foreign exchange.
Wait, what do you mean "RMB qualified investors invest abroad"?
According to the circular, overseas investment by RMB qualified investors refers to domestic financial institutions that have obtained permission from the financial regulatory authority under the State Council to own RMB funds or raise RMB funds from domestic institutions and individuals, Renminbi-denominated products invested in overseas financial markets (except for overseas use of bank-owned funds).
Since it is a "qualified investor" and it is not allowed to remit money directly, how should it be invested?
The circular pointed out: if RMB qualified investors carry out overseas investment, they shall submit to the Shanghai headquarters of the people`s Bank of China the basic conditions of RMB qualified investors, depositary banks, sources and sizes of funds, investment plans and capital remittance, in accordance with the provisions, Overseas position and other information.
The central bank said it would then exercise macro-prudential management of foreign investment by qualified renminbi investors based on factors such as cross-border capital flows, liquidity in the offshore renminbi market and the development of renminbi products.
In fact, not only against the relevant agencies, in recent years, China`s State Administration of Foreign Exchange in accordance with the law, enterprises and individuals in various types of foreign exchange violations, can be described as "vigorous enforcement."
So, what are the common foreign exchange violations? What penalties will be faced when such acts are seized? Overseas Chinese for you to enumerate today, I hope to remind you of a wake-up, alarm bells.
What is escaping foreign exchange
The crime of foreign exchange evasion is the illegal transfer of foreign exchange abroad. Emphasis is placed on the transfer of foreign exchange or capital abroad, including domestic currency and foreign currency.
The crime of foreign exchange evasion is a relatively serious crime. The Criminal Law, the decision on punishing the crime of cheating and purchasing foreign exchange, foreign exchange evasion and illegal foreign exchange trading, and the regulations on Foreign Exchange Administration all give corresponding explanations to the crime of foreign exchange evasion.
Once guilty of escape, not only will be fined, the circumstances will also be administrative detention.
In accordance with Article 39 of the Regulations on the Administration of Foreign Exchange, a fine of not less than 30% of the amount of escape is imposed, if the circumstances are light; if the circumstances are serious, a fine of more than 30% shall be imposed. If a crime is constituted, he shall be sentenced to fixed-term imprisonment of not more than five years and criminal detention for five years, in accordance with article 190 of the Criminal Law.
Real case
From February 2016 to June 2016, in order to achieve the purpose of illegally transferring assets abroad, Geng dispersed its RMB funds into the personal accounts of 31 individuals, and then used the annual quota of 31 individuals for foreign exchange purchase to convert them into foreign exchange through online banking. Centralized transfer to the Hong Kong personal account controlled by Geng, totaling HK $11.78 million.
This act violates the provisions of 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, safe shall impose a fine of RMB one hundred and fifty thousand.
What is cheating foreign exchange
Foreign exchange fraud refers to the improper settlement and sale of foreign exchange in a bank in order to achieve the purpose of deceiving foreign exchange, the core of which is to use deceptive means to allow the business organization to settle and sell foreign exchange. Like the crime of evasion, it is included in the Criminal Code.
Previously, enterprises in the bank to handle foreign exchange remittance business, mostly to provide paper customs / invoices and contracts. Because banks and customs departments are not connected, it is not possible to verify the authenticity of customs orders. As a result, there have been many cases of forged and repeated customs declarations.
In accordance with the decision on punishing the Crime of defrauding and buying Foreign Exchange, escaping Foreign Exchange and illegally dealing in Foreign Exchange, whoever commits the crime of defrauding foreign exchange shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also be sentenced to a fine of not less than 5% and not more than 30% of the amount of foreign exchange fraud;
If the amount is huge or there are other serious circumstances, the offender shall be sentenced to fixed-term imprisonment of not less than five years and not more than ten years, and shall also be sentenced to not less than 5% of the amount of foreign exchange fraudulent purchases and a
If the amount is especially large or there are other particularly serious circumstances, the offender shall be sentenced to fixed-term imprisonment of not less than ten years or life imprisonment, and concurrently be sentenced to not less than 5% of the amount of foreign exchange fraudulent purchases, or to a fine of not more than 30%
Real case
From August to September 2015, Ningbo Dacheng International Trading Co., Ltd. colluded with a number of foreign companies, using other companies as scrap bills of lading, fictitious re-export trade contracts, and entered into trading prices 5 to 20 times higher than the market price. There have been 15 illegal transfers of funds abroad, totaling one hundred and eighteen million nine hundred and ninety nine thousand nine hundred and ninety nine US dollars.
This act violates the provisions of articles 12 and 14 of the regulations on Foreign Exchange Administration, and constitutes an act of defrauding foreign exchange. In accordance with Article 39 of the regulations on Foreign Exchange Administration, safe has imposed a fine of 22.81 million yuan on the illegal amount of money, which is of a bad nature and seriously interferes with the order of the foreign exchange market.
What is arbitrage
The specific explanations of arbitrage in the regulations on Foreign Exchange Control are:
1. In violation of the provisions of the State, to pay in renminbi or in kind the payment of imported goods or other similar expenses that should be paid in foreign exchange;
2. The foreign exchange shall be paid by the other party for the payment of expenses in the territory of RMB for others.
According to Article 40 of the regulations of the people`s Republic of China on Foreign Exchange Control (decree No. 532 of the State Council):
In violation of the provisions for the collection and payment of money in foreign exchange in renminbi, or illegal foreign exchange arbitrage, such as buying foreign exchange from a financial institution engaged in foreign exchange settlement or foreign exchange sales business with false, invalid trading documents, etc., The foreign exchange administration authority shall order the exchange of illegal foreign exchange funds to be returned and impose a fine of less than 30% of the illegal foreign exchange arbitrage amount;
If the circumstances are serious, the offender shall be sentenced to a fine of not less than 30% of the illegal foreign exchange value; if a crime is constituted, criminal liability shall be investigated according to law.
Real case
From February to December 2015, in order to achieve the purpose of large-scale foreign exchange, Zhao, a member of Shandong nationality, distributed funds from the company`s account to 41 individual employees` accounts, and used these employees` individual quota of foreign exchange purchase to handle foreign exchange purchases through the Internet Bank. Reorganising staff will buy 439 foreign exchange cent withdraw cash and return to Zhao`s personal account, converted into a term deposit, totaling two million forty six thousand eight hundred US dollars.
This act violates the provisions of Article 7 of the measures for the Administration of individual Foreign Exchange and constitutes illegal foreign exchange arbitrage. According to Article 40 of the regulations on Foreign Exchange Administration, safe shall impose a fine of RMB seven hundred and five thousand seven hundred and ninety nine yuan.
[法] illegal transaction
The so-called illegal trade in foreign exchange refers to buying and selling foreign exchange, buying and selling foreign exchange in a disguised form, buying and selling foreign exchange or illegally introducing the amount of foreign exchange.
Mainly does not obtain the competent authority`s approval to engage in the foreign exchange trading business, and carries on the over-the-counter transaction. The behavior of passing through underground banks and some off-site "cattle" is typical.
Illegal foreign exchange trading disrupts the order of the market only if the circumstances are serious to constitute the crime.
For example, the illegal trading of foreign exchange has been carried out many times without repentance by administrative penalty, and the use of power to carry out illegal foreign exchange trading has had a bad effect, and so on.
Real case
From November 2014 to October 2016, Liang, a member of Guangdong province, transferred 82 transfers of HK $24.03 million from export trade to an offshore account of underground banks in order to achieve tax evasion. After the underground bank to Liang and his relatives in the domestic accounts divided into 94 yuan 19.56 million yuan.
This act violates the provisions of Article 30 of the measures for the Administration of individual Foreign Exchange, and constitutes an illegal act of foreign exchange trading. The amount of money is huge, the nature of the violations is bad, and it seriously interferes with the order of the foreign exchange market. According to the provisions of the regulations on Foreign Exchange Administration, safe has imposed a fine of five hundred and eighty six thousand five hundred and ninety nine yuan on the foreign exchange market.
It is no exaggeration to say that no one engaged in foreign exchange-related business is not a "smart man". But remember: in the increasingly perfect regulation, strict today, any fluke psychology, can not match the regulatory department`s eye-catching eye.
Timely understanding of the latest regulations, in accordance with the provisions to start business, is the king of long-term business. Do you have any relatives and friends who work in foreign exchange? Forward it, give them a wake-up call!
