China has tightened its grip on stemming the outflow of money from the world’s second largest economy by placing a $15,000 annual limit on overseas ATM withdrawals according to Asia Times.
The change took effect on New Year’s Day.
The foreign exchange regulator strengthened the rules on foreign cash withdrawals from personal bank cards in order to combat money laundering, terrorist financing and tax evasion, according to Xinhua, the state owned news service.
The total amount of overseas withdrawals from domestic bank cards owned by one person will be capped at 100,000 yuan ($15,000) annually, according to the State Administration of Foreign Exchange.
The regulator noted the rules are needed because global experience has shown large cash transactions are frequently linked to criminal activities like gambling and fraud, the SAFE noted.
Those exceeding the limit will be prevented from withdrawing cash overseas for the balance of the year and the following year, according to Xinhua. The change was made following the country’s stricter capital controls enacted last year to halt the outflow of funds.
Beijing in June mandated banks to report all oversea cash withdrawals and card transactions in excess of 1,000 yuan. Banks were required to report on oversea transactions daily as of Sept. 2.
The country had previously upgraded controls over bank cards in Hong Kong and overseas.