In another attempt to stem the tide of cash escaping from its borders, the People’s Bank of China changed bank reporting requirements on Friday to cover all domestic and overseas transactions larger than 50,000 Yuan ($7,201). According to PBOC Chief Economist Ma Jun the obligation of reporting transactions larger than CNY 50,000 will be assumed by financial institutions.
He stated that here will be no official approval procedures and no extra documentation required for individuals or companies. Ma Jun pointed to other major economies that have similar rules. However, China is preserving the same quota of 50,000 yuan for each individual's annual foreign exchange purchase.
The latest move was aimed to better monitor financing for terrorism and money laundering and not aimed at normal business activities. Nevertheless, new rules are likely to impact smaller Chinese businesses and individuals considering yuan-sellers at the highest volume are average Chinese citizens.