PRC Issues New Rules on Reporting of Foreign Currency Transactions

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Saturday, January 1, 2005
Bruce Zagaris
On October 25, 2004, China ordered banks to start reporting of large foreign currency transactions as the country increases its anti- money laundering efforts. According to the State Administration of Foreign Exchange, new rules requiring banks and other financial institutions to report large or suspicious forex transactions would help improve efforts to prevent and even prosecute money laundering involving foreign exchange. The new rules require transactions suspected of criminal involvement should be reported to police. Large transactions were defined as those involving more than US$10,000 in cash by an individual or business, or US$100,000 of non-cash instruments by individuals. The new rules also require the reporting of non-cash transactions of more than US$500,000 by businesses...[more]