China gets strict on forex transactions Beijing starts freight train to London

At risk of capital flight, China marked the new year with extra requirements for citizens converting yuan into foreign currencies.

The State Administration of Foreign Exchange, the currency regulator, said in a statement December 31 that it wanted to close loopholes exploited for purposes such as money laundering and illegally channeling money into overseas property.

While quotas of $50,000 per person per year were left unchanged, citizens must give extra information under bank forms introduced January 1. Key elements:

Customers must pledge money won’t be used for overseas purchases of property, securities, life insurance or investment-type insurance. While such rules aren’t new, citizens previously didn’t have to sign such a pledge.

Customers must give a more detailed account of the planned use of funds, such as business travel, overseas study, family visits, medical treatment, merchandise trade or purchases of non-investment insurance policies, including the timing, by year and month.

Violators of foreignexchange rules will be be added to the currency regulator’s watch list, denied foreignexchange China has started a freight train to London as part of President Xi Jinping’s efforts to strengthen trade ties with Europe, according to stateowned China Railway Corp. The train departed Yiwu in eastern Zhejiang province on January 1 and will cover more than 12,000 kms (7,500 miles) in about 18 days before reaching the British city, China Railway said in a statement on its website on Monday. The freighter, carrying garments, bags and suitcases, among other items, will pass through Kazakhstan, Russia, Belarus, Poland, Germany, Belgium and France. quota for three years, and subjected to anti-moneylaundering investigations.

Customers must confirm compliance with restrictions on money laundering, tax evasion and underground bank dealings. Customers must now confirm they aren’t lending or borrowing quotas to or from other citizens.