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SAFE News
  • Index number:
    000014453-2019-0030
  • Dispatch date:
    2019-05-20
  • Publish organization:
    State Administration of Foreign Exchange
  • Exchange Reference number:
  • Name:
    Circular of the State Administration of Foreign Exchange on Cases Involving Violations of Foreign Exchange Regulations
Circular of the State Administration of Foreign Exchange on Cases Involving Violations of Foreign Exchange Regulations


In accordance with the Law of the Peoples Republic of China on Anti-Money Laundering (Decree No. 56 of the President of the Peoples Republic of China) and Regulations of the Peoples Republic of China on Foreign Exchange Administration (Decree No. 532 of the State Council of the Peoples Republic of China), the State Administration of Foreign Exchange (SAFE) has strengthened foreign exchange market regulation, and severely cracked down upon false and fraudulent foreign exchange transactions, in a bid to maintain the healthy and benign order in the foreign exchange market. In accordance with the Regulations of the People's Republic of China on the Disclosure of Government Information (Decree No. 711 of the State Council of the People's Republic of China) and other relevant regulations, a selection of typical cases involving violations of foreign exchange regulations are notified as follows:

Case 1: Case of foreign exchange payment for false entrepot trade by Bank of Nanjing Shanghai Pudong Subbranch

From February to March 2016, Bank of Nanjing Shanghai Pudong Subbranch handled foreign exchange payment for entrepot trade with false bills of lading of enterprises.

The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, it was fined RMB 800,000.

Case 2: Case of foreign exchange payment for false entrepot trade by Agricultural Bank of China Ningbo Branch

From September 2016 to September 2017, the Agricultural Bank Ningbo Branch handled the foreign exchange payment for entrepot trade with the invalid bills of lading or repeatedly used documents presented by the enterprises, and failed to handle foreign exchange receipts and payments under entrepot trade at the same bank outlet in accordance with regulations.

The bank violated Article 12 of the Regulations on Foreign Exchange Administration and Article 5 of the Circular of the State Administration of Foreign Exchange on Further Promoting Trade and Investment Facilitation and Improving Authenticity Review. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the bank was ordered to rectify and fined RMB 644,800.

Case 3: Case of foreign exchange payment for false entrepot trade by ICBC Nanchang Beijingxilu Subbranch

From September 2016 to October 2017, ICBC Nanchang Beijingxilu Subbranch handled foreign exchange payment for entrepot trade with false bills of lading of enterprises.

The bank violated Article 12 of the Regulations on Foreign Exchange Administration. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the bank was ordered to rectify and fined RMB 1,115,400.

Case 4: Onshore guarantees by Industrial Bank Taizhou Branch for offshore loans against regulations

From April 2015 to May 2016, Industrial Bank Taizhou Branch failed to fulfill verification responsibilities when handling contracting of onshore guarantees for offshore loans and performing foreign exchange payment, and failed to conduct due diligence and inspection as required, with regard to the purposes of the loans, expected sources of repayment, possibility of performing the contracts for onshore guarantees and relevant transaction background.

The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the bank was ordered to rectify and fined RMB 953,100.

Case 5: Split-up sales and payments of individual foreign exchange by China Merchants Bank Hangzhou Branch

From January to November 2016, China Merchants Bank Hangzhou Branch used the annual quotas of 303 individuals in China to buy foreign exchange and split up sales and payments of foreign exchange for its clients in violation of regulations.

The bank violated Article 7 of the Measures for the Administration of Individual Foreign Exchange. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the bank was ordered to rectify and fined RMB 1 million.

Case 6: Evasion of foreign exchange by Shandong Qingyuan Group Co., Ltd.

In May 2016, Shandong Qingyuan Group Co., Ltd. made external foreign exchange payment of USD 9.555 million by using false contracts, invoices and bills of lading, and fabricating trade background.

The company violated Article 12 of the Regulations on Foreign Exchange Administration and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 3,097,400. Relevant penalty information has been included in the credit information system of the Peoples Bank of China.

Case 7: Evasion of Foreign Exchange by Guangzhou Yangfan Trading Co., Ltd.

From May 2016 to June 2017, Guangzhou Yangfan Trading Co., Ltd. made external foreign exchange payment of USD 92.858 million by using false bills of lading and fabricating trade background.

The company violated Article 12 of the Regulations on Foreign Exchange Administration and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 37.34 million. Relevant penalty information has been included in the credit information system of the Peoples Bank of China.

Case 8: Evasion of foreign exchange by Country Style Cooking (Chongqing) Investment Co., Ltd.

From November 2016 to March 2017, the actual controller of Country Style Cooking (Chongqing) Investment Co., Ltd. did not handle the registration of foreign exchange and alteration registration for overseas investment in accordance with the regulations, and remitted profits to the overseas parent company in violation of the regulations, with a total amount of USD 8,859,900.

The company violated Article 16 of the Regulations on Foreign Exchange Administration and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 3.02 million. Relevant penalty information has been included in the credit information system of the Peoples Bank of China.

Case 9: Evasion of foreign exchange by Ningbo Huili International Trade Co., Ltd.

From February 2017 to March 2018, Ningbo Huili International Trade Co., Ltd. made external foreign exchange payment of USD 15,656,200 by using false bills of lading and fabricating trade background.

The company violated Article 12 of the Regulations on Foreign Exchange Administration and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 5,098,400. Relevant penalty information has been included in the credit information system of the Peoples Bank of China.

Case 10: Evasion of foreign exchange by Beijing Xinhuayang Trade Co., Ltd.

In May 2017, Beijing Xinhuayang Trade Co., Ltd. made external foreign exchange payment of USD 6.19 million by using invalid bills of lading and fabricating trade background.

The company violated Article 12 of the Regulations on Foreign Exchange Administration and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 2,136,500. Relevant penalty information has been included in the credit information system of the Peoples Bank of China.

Case 11: Evasion of foreign exchange by Tellhow Sci-Tech Co., Ltd.

In May 2017, Tellhow Sci-Tech Co., Ltd. made external foreign exchange payment of EUR 2 million by using false bills of lading and fabricating trade background.

The company violated Article 12 of the Regulations on Foreign Exchange Administration and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 800,000. Relevant penalty information has been included in the credit information system of the Peoples Bank of China.

Case 12: Illegal trading of foreign exchange by Mr. Liu from Sichuan

From June 2014 to August 2015, Mr. Liu remitted inward HK$ 7,671,700 in 12 deals through underground banks.

He violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was considered breaking the laws on the purchases and sales of foreign exchange. In accordance with Article 45 of the Regulations on Foreign Exchange Administration, he was fined RMB 491,400. The SAFE exercised the Watch listmanagement on Mr. Liu, and included him into the credit information system of the Peoples Bank of China.

Case 13: Illegal trading of foreign exchange by Mr. Cao from Hubei

From July 2015 to March 2016, Mr. Cao conducted 34 deals of illegal trading of Hong Kong dollars via underground banks, with a total amount of RMB 8,993,200.

He violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was considered getting involved in the illegal trading of foreign exchange. In accordance with Article 45 of the Regulations on Foreign Exchange Administration, he was fined RMB 719,500. The SAFE exercised the Watch listmanagement on Mr. Cao, and included him into the credit information system of the Peoples Bank of China.

Case 14: Illegal trading of foreign exchange by Mr. Peng from Chongqing

From September to December 2015, Mr. Peng purchased US dollars via underground banks in 16 deals to remit overseas, with a total amount of RMB 13,835,800.

He violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was considered getting involved in the illegal trading of foreign exchange. In accordance with Article 45 of the Regulations on Foreign Exchange Administration, he was fined RMB 968,500. The SAFE exercised the Watch listmanagement on Mr. Peng, and included him into the credit information system of the Peoples Bank of China.

Case 15: Illegal trading of foreign exchange by Mr. Zhang from Anhui

From January 2017 to April 2018, Mr. Zhang conducted illegal trading of Hong Kong dollars several times via underground banks, with a total amount of RMB 3,762,400.

He violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was considered getting involved in the illegal trading of foreign exchange. In accordance with Article 45 of the Regulations on Foreign Exchange Administration, he was fined RMB 452,000. The SAFE exercised the Watch listmanagement on Mr. Zhang, and included him into the credit information system of the Peoples Bank of China.

Case 16: Purchases and sales of foreign exchange by Mr. Hong from Zhejiang, without permission

From February 2011 to October 2015, Mr. Hong paid RMB 312 million to another people's account, and purchased foreign exchange privately for the overseas purchase of real estate.

He violated Article 30 of the Measures for the Administration of Individual Foreign Exchange by getting involved in the purchases and sales of foreign exchange without permission. In accordance with Article 45 of the Regulations on Foreign Exchange Administration, he was fined RMB 24.97 million. The SAFE exercised the Watch listmanagement on Mr. Hong, and included him into the credit information system of the Peoples Bank of China.

Case 17: Evasion of foreign exchange by Mr. Sun from Guangdong through split-up

From January 2016 to July 2017, Mr. Sun split up his personal funds, used the annual quotas of 34 individuals in China to buy foreign exchange and transferred the foreign exchange into overseas account. The funds thus transferred illegally amounted to USD 2,446,200 in total, which is used for overseas investment.

He violated Article 7 of the Measures for the Administration of Individual Foreign Exchange and was considered getting involved in the evasion of foreign exchange. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, he was fined RMB 830,000. The SAFE exercised the Watch listmanagement on Mr. Sun, and included him into the credit information system of the Peoples Bank of China.

 

 

The English translation may only be used as a reference. In case a different interpretation of the translated information contained in this website arises, the original Chinese shall prevail.

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