You’ll Be Monitored When Paying Over RMB100k!? PBOC Says…

Are you paying or receiving cash for transactions? Now it’s time to pay attention! China plans to launch large-sum cash management trials. The large-sum cash usage situation for individual accounts will be monitored and investigated. 

On November 5, the People’s Bank of China (PBOC) issued the draft version of the Notice of the People’s Bank of China Concerning the Undertaking of Large-sum Cash Management in the Trial Areas of Hebei Province, Zhejiang Province and Shenzhen Municipality released for public opinion. 
You'll Be Monitored When Paying Over RMB100k!? PBOC Says...
Cash demand has grown in recent years in China despite the rapid development of cashless payments including Alipay and WeChat Pay. 
Besides, cash can be extensively used in many situations, leading to concerns about the use of large cash amounts for illegal activities including corruption, tax evasion and money laundering. 
More and more large-cash transactions made by certain people in specific periods and fields such as down payments on a house, payments for purchase, cash bonus and dividends. 
“Chi­na’s large-sum cash man­age­ment suf­fers from weak links in­clud­ing lim­ited reg­u­la­tory cov­er­age and in­suf­fi­cient le­gal ef­fec­tive­ness, and ur­gently re­quires strength­en­ing, ” said PBOC. 

You'll Be Monitored When Paying Over RMB100k!? PBOC Says...

A steelworks in Jiangxi Province gave its workers cash bonus. 

  • To meet the needs of the current situation, strengthen efficacious management of large-sum cash flow and containment of illegal cash usage; 


  • To establish and optimize the social governance system. 
As we mentioned above, the trial will operate in: 
  • Hebei Province
  • Zhejiang Province
  • Shenzhen Municipality

You'll Be Monitored When Paying Over RMB100k!? PBOC Says...

Ac­cord­ing to PBOC Hebei province was se­lected be­cause its “bank­ing sec­tor fi­nan­cial in­sti­tu­tions have com­par­a­tively strong foun­da­tions for man­age­ment of large-sum cash op­er­a­tions,” while Zhe­jiang province and Shen­zhen mu­nic­i­pal­ity are both “key re­gions for cash re­lease in China.”

The tri­als are sched­uled to run for a pe­riod of two years, kick­ing off first in Hebei province be­fore launch­ing in Zhe­jiang province and Shen­zhen mu­nic­i­pal­ity at an “ap­pro­pri­ate time.” 
Related measures will be adjusted and optimized during the trial, and finally implemented nationwide. 

Threshold Amounts

For corporate accounts, related measures will apply if the amount of funds exceeds 500,000 yuan ($71,625); 

For individual accounts, the threshold amount goes to 100,000 yuan ($14,325) in Hebei Province, 300,000 yuan ($42,975) in Zhejiang Province, and 200,000 yuan ($28,650) in Shenzhen. 

You'll Be Monitored When Paying Over RMB100k!? PBOC Says...

Registration will be required if the cash amount exceeds 100,000 yuan. 

Situations Under Control

  • Cash deposits and withdrawals
  • Spinning off
  • Posting
Any usage above exceeding a specific amount each time or accumulatively will be monitored. (The cumulative period is not mentioned.) 

Industries Under Control

Hebei Province
  • Real estate
Zhejiang Province
  • Wholesale and retail
  • Real estate sales
  • Construction
  • Car sales
Shenzhen City
  • Individual cash operations 
  • Business accounts and individual accounts related to the same entity
  • Cross-border renminbi cash flows

Main Measures

  • Es­tab­lish­ment of a large-sum cash an­a­lyt­i­cal re­port sys­tem
  • Es­tab­lish­ment of a large-sum cash mon­i­tor­ing and in­ves­ti­ga­tion sys­tem
  • For­mu­la­tion of in­dus­try and en­ter­prise large-sum cash trans­ac­tion records and re­ports
  • In­di­vid­ual cash rev­enue re­ports
  • Large-sum cash cross-bor­der mon­i­tor­ing
Apparently the measures for the management and supervision are not for people’s daily economic activities. 
They will not affect the demand for normal and reasonable cash operations of individuals and companies (especially individual businesses), perfectly coordinating with policies of market procurement trade. 
You'll Be Monitored When Paying Over RMB100k!? PBOC Says...
Local governments, development and reform departments, fiscal departments, tax departments, finance supervision departments, and other authorities will build a joint supervision system. 

You'll Be Monitored When Paying Over RMB100k!? PBOC Says...

Chinese central bank is watching you. 

In general, large-sum cash transactions are still allowed, as long as you operate in accordance with the laws and regulations. 
But when the measures are implemented, your large-sum operations will be under supervision more or less. So it’s time to pay attention if you use individual accounts in business. 

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You'll Be Monitored When Paying Over RMB100k!? PBOC Says...

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