China’s Crackdown on Overseas Use of Bank Cards May Hamper EB-5 Investments

June 11, 2017 in EB-5 News, EB-5 Visa, 未分类 by Richard Sander 理查德·桑德

China’s State Administration of Foreign Exchange (SAFE) said in a statement on its website last week that China’s banks will be asked to report bank card holders’ withdrawals in overseas countries and regions starting September 1, as well as any bank transactions exceeding 1,000 yuan.

“With increasing requirements to fight money laundering, terrorist financing and tax avoidance, measures for cross-border transactions need to be enhanced in terms of trading transparency and quality of statistics,” the SAFE statement said.

In recent years, the amount of overseas withdrawals has been growing and bank cards have become the major overseas payment tools for Chinese people, in excess of $120 billion last year, including many EB-5 investors. This new reporting requirement may force EB-5 investors to turn to alternate forms of cross-border transactions.