Expats In China Can’t Send Money Back Home!
To ensure absolute control of its currency, China has placed strict regulations on how currency is transferred in and out of the country. Chinese law forbids anyone from sending more than USD $50,000 in any given year without permission from the government.
WeChat Official Account: ExpatRights
Many companies are forced to find loopholes within the financial system to send money out of China.
Some companies achieve this by using a broker.
The broker is responsible for finding a way to transfer large amounts of monies outside of China for a business needing this service.
According to the China Law Blog, banks are usually the ones to suggest these brokers.
Although this practice is illegal, a referral from a bank for such a company is usually considered safe.
“Company A” transfers a large amount of money as a transaction to “Company B”. “Company B” having an international account then transfers the same amount to an account provided by “Company A”. “Company B” ‘fixes’ the transactions on the books for auditing purposes and “Company A” is happy.
Other expats use some variation of the following scenario: ‘Expat Mary’ has USD $150,000 that she needs to send to her home country. Because ‘Expat Mary’ can only send USD $50,000 outside of China, she separates the $150,000 into three $50,000 parts and have her friends ‘Chinese Paul’ and ‘Chinese Peter’ help her with the transaction.
With China’s strict policy regarding the flow of currency, expats are forced to find crafty ways to get their money outside of China.
If an expat works or has a business in China, this expat should have the freedom of sending desired amounts of money once it is acquired from legal sources.