On June 2, the Administration of Foreign Exchange issued a notice stating that, starting September 1, domestic financial institutions must report transactions if a bank card is used overseas and if the total amount is over 1000 yuan (US$150). The measure serves to validate personal information when there is spending activity overseas and to prevent any illegal purchase activity. People’s Daily published an article on August 4 stating that, since the bank card has become an important method for money laundering or corruption activity, the start day for reporting financial activity when using domestic issued bank cards overseas has been moved up to August 21. According to the article, a large amount of cash has been spent overseas in recent years. In order get cash to use while traveling overseas, some Chinese tourists have worked with a store to create fake purchases of jewelry or watches. Then they get cash from the store instead. Some have sold bank cards to be used for cash withdrawals overseas. The spokesperson from the Administration of Foreign Exchange stated that implementing reports of overseas bank card transaction activity will prevent illegal bank card transactions. The financial institution needs to report and collect the data and there is no need for the card user to do anything different. The Administration said it will not affect personal use of the bank card and personal information is strictly protected.
1. People’s Daily, August 4, 2017
2. Xinhua, June 2, 2017