In recent years, the state has repeatedly tightened foreign exchange control, but as the saying goes, "there are policies, there are countermeasures". In recent years, there are many examples of foreign exchange transfers to overseas through small amounts of money.
However, last week, China's Foreign Exchange Administration again issued successive notices, naming typical cases of non-compliance, ordering "ants to move" behavior, and comprehensively strengthen the control of foreign exchange purchases.
This leads to the realisation that China's grip on foreign exchange may reach new highs. Overseas Chinese want to send money out of the country, it will only be even more difficult!
And the most important question, too, is at hand: how can Chinese people buy a home overseas after the remittance route is blocked?
1. Foreign Exchange Administration notifies typical cases of illegal exchange of foreign exchange
In the Circular on cases of Foreign Exchange violations issued by the State Administration of Foreign Exchange on 24 July (hereinafter referred to as the "Circular"), the State Administration of Foreign Exchange reported the following typical cases of illegal exchange of foreign exchange:
During the period from January 2016 to December 2017, Zhao Mou (alias), a Hebei native, used the annual quota of personal foreign exchange purchase by himself and others, totaling 55 people, to split his personal assets into foreign exchange and remit them to an offshore account, and Zhao used such "ant moving" behavior. Illegal transfers totaled $two million four hundred and fifty three thousand one hundred.
After investigation, Zhao's action violates Article 7 of the personal measures on Foreign Exchange Administration, and constitutes an act of foreign exchange evasion.
The State Administration of Foreign Exchange of China immediately decided to make an example of the monkey and knock on the mountain, not only by name-naming and criticism, but also by imposing a fine of 1.16 million yuan on Zhao in accordance with Article 39 of the regulations on Foreign Exchange Administration.
(photo source: http://www.safe.gov.cn/)
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 strength of the investigation and punishment of unprecedented!
The news came after news spread on Chinese networks that Chengdu families had sent tens of thousands of dollars overseas, but had been refused by phone call from the foreign exchange administration, and the dollar, which had already been bought, had been refunded into renminbi.
2. The foreign exchange administration reported that it was knocking on the mountain and shaking the tiger.
This time, the Administration of Foreign Exchange has repeatedly notified, in fact, there is a mystery.
First of all, in the article "the Administration of Foreign Exchange strictly investigated and dealt with foreign exchange violations and maintained a healthy and healthy order in the foreign exchange market" (hereinafter referred to as "order"), it was stated that:
"in the first half of 2018, a total of 1354 illegal cases were investigated and punished, with fines amounting to 345 million yuan, an increase of 19.7 percent and 59.5 percent respectively from the same period last year."
Why so much year-on-year growth? Hard to say is the Chinese brain smoking all of a sudden to exchange foreign exchange remittance?
As a matter of fact, this is the safe's strategy of "knocking the mountains and shaking the tiger" to tell you directly:
We're getting tougher, we got a lot of cases! And the fine is heavy!
At the same time, the Administration of Foreign Exchange also mentioned:
"to maintain the stability, continuity and consistency of foreign exchange administrative law enforcement across cycles, severely crack down on false funds, deceive funds such as sexual transaction and illegal arbitrage, and crack down on underground banks," he said. Illegal foreign exchange trading platform and other illegal activities. "
In other words, the administration of foreign exchange has implicitly said that no matter how volatile the situation is and how unstable trade is, it will remain firm and will continue to enforce the law harshly!
Finally, the paper also links foreign exchange control with maintaining national economic and financial security.
You can see, at present, to hold the bottom line of financial security has risen to a strategic level. The characterization of foreign exchange control in "maintaining national economic and financial security" also demonstrates the determination of safe to further enforce the law and control foreign exchange.
3. With the tightening of foreign exchange, how do Chinese capital flow out?
It can be said that the tightening policy is aimed at preventing the outflow of domestic capital and combating money-laundering, but at the same time, the normal life of many overseas Chinese has also been affected to some extent.
The first to bear the brunt of the blow, will be overseas real estate.
In Australia, for example, the proportion of Chinese buyers is the highest in the Australian real estate industry, it can be said that the Chinese support half of the Australian real estate industry.
After the difficulty of foreign exchange, the overseas home purchase fever is like pouring cold water in front of the face, many potential home buyers have been afraid, those who have paid down payment is even more difficult to ride the tiger.
If you continue to pay, it will be more difficult; if you do not, you will lose down payment.
Another difficulty is investing. Under the "Belt and Road Initiative" advantage, Chinese capital enters more countries and regions, while foreign exchange controls limit many people's outflow of assets overseas for reasonable investment.
But there are also several industry insiders believe that if individual investors are still interested in real estate, there are other ways to get capital out of the market.
4. Response measures
So, if you want to remit your reasonable property abroad, what are the options?
1. Use of third-party remittances
First, investors transfer the purchase money to a third-party bank account in China; then, the third party transfers the same amount of US dollars or other foreign currency from its offshore bank account to an investor's offshore account or a developer's offshore account.
(2) large amounts of foreign exchange through the Foreign Exchange Administration's licensing agency
In recent years, safe has approved a number of financial institutions, such as banks and fund companies, to pilot large foreign exchange and investment services of more than $50,000, through which investors have set up special investment plans.
After the review, investors transferred a large sum of renminbi from their personal accounts to fund companies, which are remitting money to investors' designated overseas investment accounts; however, in the case of individual exchange, they will not be allowed to buy a house.
3. Bank "out-of-memory loan" or "Internal Insurance and Foreign loan"
As a formal channel of capital outflows, private banks' high-end cross-border services "out-of-memory loans" have gradually become another option for high-end customers, but the formalities are more complex, but basically guarantee legitimacy.
4. Open multiple offshore accounts with sufficient time to operate
This is a relatively safe, low-cost, but long front, a somewhat cumbersome way to operate. You can ask your friends and relatives to help, but it's best to stop strangers from stepping on thunder.
5. Credit card payment
This method is mainly applicable to students studying abroad. They can use credit cards tied to their parents' accounts, swipe their own cards overseas, and their parents pay back RMB at home. This method is more convenient and can be exempted from many cumbersome formalities.
Finally, in short, despite strict foreign exchange controls, but after all, "there is no end to the road," to get money out, still need to have a clear conscience.
