Two days ago, a policy that affects the majority of foreigners in China began to be officially implemented, stipulating the behavior of illegal buying and selling of foreign exchange, such as buying and selling foreign exchange or disguised trading of foreign exchange. 

© Image | GOOGLE

This means that in the future, these behaviors will be strictly controlled:

• Exchange in the WeChat, 

• Overseas card swiping, 

• Overseas home purchases, 

• Etc.

© Image | screenshot from official website

On February 9, The Supreme People’s Court of China and the Supreme People’s Procuratorate jointly issued a statement clearly indicating that illegal foreign exchange transactions have been made and the profits have exceeded 100,000 yuan. Besides the high fines, the law breakers may be sentenced to imprisonment for more than five years in serious circumstances!

Behaviors belong to illegal selling 

and buying foreign exchange

Reselling foreign exchange refers to fraudulent buying and selling foreign exchange in cash from person in China. The common trick is “cross-border payments”. Nowadays, many underground money shops are trading in this way, resulting in huge capital outflows, which seriously endanger social and financial stability.

What is serious case?

For example, if you need to change the exchange, these companies will charge your foreign currency cash, and then send the exchanged RMB to your account through Alipay, WeChat, bank card and other means. Or a transfer between two friends in a similar way, also belong to disguised trading of foreign exchange.

© Image | GOOGLE

Since then, the total amount of illegal foreign exchange transactions completed by anyone in this way has reached 5 million yuan, or illegal profits exceeding more than 100,000 yuan, will be characterized as a criminal offence-illegal business crime. 

Certainly, the total transactions of 5 million yuan, or the profit of 100,000 yuan is not a one-off, but accumulated!

#Besides, the following 3 points need to be particularly noticed:

↓↓↓

1.Fabricate payment settlement

Commonly used in Alipay, WeChat, bank cards and so on. When you buy a certain product overseas, the money will be automatically converted into a foreign currency.

© Image | screenshot from official website

But afterwards, if you are dissatisfied with the goods, or there are some problems with the quality of the goods that need to be returned, you choose to return the goods in cash at the time of return, then this behavior may violate Chinese laws, involving in extracting foreign exchange.

2.Extract cash from company to person

For example, consumers choose a travel agency and pay a fee of 30,000 yuan in China. After the travel agency transferred the 30,000 yuan to overseas branches, the branch pay equivalent cash to the consumer. The behaviors of consumer and the company are both illegal.

3.Extract cash from cheque

It’s similar as extracting cash from company to person. The difference is paying in cheque. Like the same operation through travel agencies and overseas branches, pay equivalent cash to the consumer.

© Image | GOOGLE

These behaviors of extracting cash is the object that the government will crack down in the future. Don’t violate the bottom line of the law because of your negligence.

What is serious case?

Serious

• The amount of illegal income is over 5 million yuan.

• The amount of illegal profit is over 100,000 yuan.

Particularly serious

• The amount of illegal income is over 25 million yuan.

• The amount of illegal profit is over 500,000 yuan.

The serious and particularly serious cases both belong to criminal offence, only different in degrees of severity.

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