China gets strict on forex transactions

At risk of capital flight, China marked the new year with extra requirements for citizens converting yuan into foreign currencies.

The State Administration of Foreign Exchange, the currency regulator, said in a statement December 31 that it wanted to close loopholes exploited for purposes such as money laundering and illegally channelling money into overseas property.

While quotas of $50,000 per person per year were left unchanged, citizens must give extra information under bank forms introduced January 1. Key elements: Customers must pledge money won’t be used for overseas purchases of property, securities, life insurance or investment-type insurance. While such rules aren’t new,