How You Can Transfer Your Money Out of China Easily Without Breaking the Rules
Starting from 1 January 2017, Chinese government has tightened the restrictions on capital outflows. Even though the quota of foreign currency exchange for each individual remains unchanged to be US$50,000 per year, additional restrictions applied to increase the difficulties to transfer the money out of China.
The new rules have strengthen the inspection on individual foreign currency transfers as well as the penalties for illegal capital outflows. Chinese citizens will now have to state their purpose of foreign purchase by filling an application form. This is to restrict foreign purchase for overseas real estate, securities and life insurance investments.
This rule has affected all the individuals in China who are planning to acquire a property in overseas. The degree of impacts on the global real estate market is still unclear, but what we know is that the Chinese investors are still having strong interest in overseas real estate. If you are looking for official ways to transfer your money out of China, the following information might be able to give you an idea.
1. Transfer money from your own account to the receiver’s account
This is the simplest method to transfer your money to overseas. What you need to do is to go to the bank and fill in the application form with personal reason for the money transfer. Please make sure that you prepare the information of the receiver such as name, address, receiver’s account number, receiver’s bank name, receiver’s bank address, ABA routing number (9 digits bank code used for various bank transactions), swift code and amount of money you would like to transfer. However, there is a limitation of US$50,000 per year for this method. You might think that if you can accumulate a higher amount of money from your friends and family. It is true that everyone is allowed to transfer up to US$50,000, but once you are caught, you will be prohibited to transfer your money to overseas for two consecutive years. You can also be fined at up to 30% of the funds involved.
2. Convert RMB to foreign currency up to US$10,000 or equivalent in other currency by cash
This method is almost similar as above, but you will hold the money in cash. You will be able to avoid from being investigated because bank transaction is not required. However, there is a custom control on the cash can be carried out of China, which is restricted to US$5,000. If you would like to carry more than US$5,000 in cash, you shall fill in the declaration forms to be endorsed by the Customs.
3. Seek for assistance from overseas friends or family who has a bank account in China
For those who have friends or family in overseas, you can ask for their help in paying with local currency. To pay back the money, you can transfer the similar amount in RMB to their bank account in China. By using this method, you are not required to involve in the foreign currency exchange, but it takes time for your friends or family to transfer back the money to overseas, unless they also require RMB for personal use or business in China.
For now, there are not many ways to do foreign exchange from China without having to break the restriction on foreign policy. It is undeniable that there are many unofficial ways out there, but bear in mind, you would have to bear the risk of getting caught! Think twice before you act!
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