Anti-tax avoidance and combating money-laundering have become an international trend.
With the provisions of the United States, the emergence of European OEDC, and recent Chinese CRS related laws, many countries can exchange tax information on financial accounts, and banks are increasingly strict in regulating money-laundering.
Many bank accounts may be closed by banks if they are unable to account for their sources of capital or are suspected of tax avoidance due to unusual access to and exit from the bank.
China's strict control of foreign exchange funds, overseas Chinese remittance routes have almost been "blocked."
Now even the intermediate transfer banks have stepped in to help fight money-laundering, and let many accountants shout: "it's really painful to have no money, and it's painful to have money."
Anti-money laundering Alipay, social app large traders will monitor the use of the Internet to combat foreign exchange evasion, money laundering.
As of January 1, China's new rules on large-scale transaction reports on non-bank payment institutions have been put into effect. The purchase consumption paid by users using Alipay or social app has reached more than 50, 000 yuan, and the amount of money transferred has reached more than two hundred thousand yuan. Will be listed as large suspicious transactions for monitoring.
The main purpose of doing so is to combat activities such as money-laundering and illegal financing.
Anti-money laundering Alipay, social app large traders will also be monitoring in recent months, if you want to send money from one country to another, it is also starting to face difficulties.
Chinese accountants said global banks did not want to be fined huge sums for failing to do their job, and banks began investigating the source of money for remittance projects, almost regardless of the amount of money they received.
There was one example before:
Some installed third-party browser plug-ins will cause pictures to be lost from a Singapore account to a Hong Kong account, where the amount is transferred directly to the recipient bank.
But the recipient bank has been late to receive the money, after inquiry found that the money was stuck in the transfer.
Why in the end was transferred to the investigation, why, no one can know at present.
Others, who sent small remittances from banks in Hong Kong to BOA in the United States, were also being picked up, saying the recent move was aimed at identifying the sources of money.
This has led some U.S. citizen, green card holders, as foreign countries, to hoard overseas funds that hold financial heritage assets overseas and to benefit from years of offshore trade. CRS will lead to account circulate a notice no escape, there is no place to deposit money.
Accounts could also be closed on suspicion of tax evasion, and could eventually become international-funded vagrants, with no financial institutions willing to take care of them.
"Ant move" and other remittance methods have been very difficult to operate and ants move, underground banks, black market transactions are the most commonly used Chinese remittance methods, since 2018, it has been very difficult to operate.
As of July 1 last year, China's measures for the Administration of Financial institutions' large transactions and suspicious transaction reports were formally implemented.
This means that the average Chinese citizen will not only continue to be subject to a limit of not more than $50, 000 per person per year on foreign exchange purchases.
When making remittances outside China, it is even more important to note the new policy that "remittances exceeding the equivalent of $10,000 will be counted as large transactions reported".
A family surnamed Wang in Chengdu received a call from safe after remitting more than US $10, 000, and finally the remittance could only be stopped.
Li Wei (alias), who specialises in underground banking trading in San Diego, Southern California, said the current transfer from China to the United States costs as much as 10 to 20 percent for every $1 million. Previously, Hong Kong was a "convenient route" for Chinese remittances, but trading volumes are also falling due to trading trust issues, according to sources inside the company.
So, what is ant moving? 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 "notice"), safe and Chinese foreign exchange designated banks are defined:
1. More than 5 different individuals shall remit foreign exchange to the same person or institution abroad on the same day, after buying foreign exchange on the other day or for more than one consecutive day;
(2) within 7 days, individuals withdraw notes in foreign currency close to the equivalent of US $10,000 from the same foreign exchange savings account for more than five times;
3, the same person transferred his foreign exchange savings account deposits to more than 5 immediate family members and so on.
This form of remittance is more risky and will be included in the government's "attention list" with a little bit of carelessness.
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 face fines, such as fines, the amount of fines as high as 1.16 million yuan.
Event 1:
In order to buy a house, Ms. Huang, who emigrated to Canada three years ago, chose the method of "ants moving" a small number of times on the long front, and the family finally managed to make up the down payment for a year.
First, she used her Chinese account to remit 50,000 yuan to her Canadian account in the name of visiting relatives, worried about tax checks by the IRS, and leaving all stubs and transfer records. Then she sent herself two more gifts in the name of a gift, using her parents' account.
Later, when she and her husband returned to China, one person took 10, 000 yuan in cash. As a result, when he returned to the bank to deposit cash, he was also reported to check whether money laundering was involved.
Event II:
In 2011, Wang Yongli (Yong Li Wang, a Canadian resident of Chinese origin in Shandong Province, and Wang Hongjie, an overseas buyer of China's Shandong province, decided to jointly pay for a five-acre independent house in BC province. The property is currently valued at C $2.15 million.
Because of the limit of US $50, 000 a year, Wang Hongjie transferred a total of C $ four hundred and fifty thousand to Canadian banks in the name of nine Chinese citizen, and transferred a British bank account to another C $ three hundred thousand, totaling C $ seven hundred and fifty thousand. The house was bought in cooperation with Wang Yongli.
By 2016, the two men had a conflict, and Wang Hongjie took Wang Yongli to the BC Provincial High Court on the grounds of Wang Yongli's fraud and breach of contract, and demanded that he independently own 2973 burns rd's house property right. Wang Yongli categorically denied the above-mentioned accusation.
A few days ago, the BC Provincial High Court presiding judge Laura Gerow ruled that neither of the original defendants' statements was credible and dismissed Wang Hongjie's claim, but demanded that both parties bear the costs of law.
Most crucially, the judge ruling made an unprecedented statement about the source of funding for Chinese buyers to buy real estate in BC province.
"funds transferred to Canada through nine people's accounts for tourism purposes are not legal transfers," judge said in the ruling. Moreover, Wang Hongjie should know that the purpose of entering Canada is to invest, so he should also know the legal method of transferring funds. "
As a result, Wang Hongjie is likely to lose control of house because of "illegal transfer methods." The case is tantamount to warning all Chinese buyers not to try ant-like transfer money again.
With the tightening of foreign exchange control, as well as the sound foreign law system, Chinese remittances must not be lucky to buy houses, remittance channels must be legal, exchanges should be clear.
This means that China not only imposes strict restrictions on individual foreign exchange purchases, but also requires grass-roots banks to strictly enforce rules when dealing with foreign exchange matters, or they may cause themselves trouble.
At the moment of tightening foreign exchange, it can be said that the policy of tightening the outflow of Chinese capital is to prevent the outflow of domestic capital and combat money laundering, but at the same time, the normal life of many overseas Chinese has also been affected to a certain extent.
The first to bear the brunt of the blow, will be the overseas real estate industry.
In Australia, for example, the proportion of Chinese buyers in the Australian real estate industry is the highest, it can be said that the Chinese support half of Australia's 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.
What are the ways to remit your reasonable property abroad? (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.
In short, despite strict foreign exchange controls, but after all, "there is no end to the road," to get money out, but still have a clear conscience.