Chinese banks will start closely monitoring overseas transactions on domestic bank cards later this year in an effort to prevent money laundering and tax avoidance.
A new regulation, set to go into effect September 1, will require Chinese banks to report their bank card holders' cash withdrawals in foreign countries and regions. Bank transactions exceeding RMB1,000 will also be reported.
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The new rule will affect all types of cards, including debit and credit cards. Regulators insist that card holders' personal privacy will remain protected.
Previously, banks only tracked the total number of overseas transactions from domestic bank card holders.
The main goal of the new regulation is to help combat illegal money laundering, terrorist financing and tax avoidance. State media report that overseas cash withdrawals have increased in recent years, with transactions exceeding USD120 billion in 2016. That has reportedly led to more suspect transactions.
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