In 2007, China officially implemented the reform of individual management. Adhering to the principle of authenticity verification, China determined the annual facilitation amount of domestic individuals, equivalent to 50,000 yuan per person per year, to meet and facilitate the use of foreign exchange by individuals in various aspects.
According to the nature of individual transactions, individuals are classified into current account individual foreign exchange business and capital account individual foreign exchange business.
Among them, individual foreign exchange business under current account shall be managed in accordance with the principle of convertibility to meet individuals’ real, compliant and reasonable foreign exchange demand under current account without barrier;
The individual foreign exchange business under the capital account shall be managed in accordance with the convertibility process.
Since 2011, individuals can easily purchase foreign exchange and foreign exchange through the bank’s electronic channels without going out.
1. When domestic individuals handle foreign exchange settlement business, if the transaction is real and legal, the current account settlement of foreign exchange within the annual facilitation limit of US $50,000 equivalent may be handled directly at the bank by presenting their valid identity documents;
Current account settlement of foreign exchange exceeding the annual facilitation quota shall be handled by presenting valid identity documents and relevant documents.
For example, A’s children are overseas Chinese who live abroad all year round.
If A receives remittances from her children abroad and the settlement of foreign exchange exceeds the annual facilitation quota, it can be processed by providing the certificate of immediate family relationship or notarized proof of support relationship, and relevant income certificate of the overseas payer (such as bank deposit certificate, personal income tax payment certificate, etc.).
Or let’s say B, who works abroad, gets paid by a foreign employer.
For the settlement of exchange exceeds the annual facilitation quota, can be handled by providing employment contracts, income certificates and other materials.
In addition, for the foreign exchange income of current account, such as household payment and employee salary, individuals can also choose to settle foreign exchange without occupying the annual facilitation quota according to relevant information.
2 and individuals to handle the foreign exchange purchase business, in the case of trading real, legitimate, forex purchase information, should declare $50000 annual equivalent facilitation within the quota of foreign exchange purchase, but with his valid identity documents directly in the bank to handle, used for current account and capital projects, which are open to the public for leisure travel, study abroad, overseas medical treatment, etc.
However, it is not allowed to lend or borrow the annual facilitation quota of others, or use it for some capital projects that have not yet been opened, such as overseas real estate investment, securities investment, investment insurance, etc.;
Current account purchase of foreign exchange exceeding the annual facilitation quota shall be handled by presenting valid identity documents and relevant documents of transaction volume.
For example, if Party A is going to study abroad and needs to purchase foreign exchange to pay tuition fees, Party A may choose to provide the bank with valid ID card, admission notice, tuition payment form and other documents that can prove the authenticity of foreign exchange for studying abroad, and purchase foreign exchange that does not account for the annual facilitation amount.
You can also choose to purchase foreign exchange within the annual facilitation limit only with valid identity documents.
3. When overseas individuals handle foreign exchange settlement business, if the transaction is real and legal, the current account settlement of foreign exchange within the annual facilitation limit of US $50,000 equivalent can be handled directly at the bank by presenting their valid identity documents;
Current account settlement of foreign exchange exceeding the annual facilitation quota shall be handled by presenting valid identity documents and relevant documents.
For example, when overseas individuals need to pay rent and settle foreign exchange in China, they are required to provide a valid ID card, house rental contract, invoice or payment notice if the annual facilitation limit is exceeded.
4. When an overseas individual purchases foreign exchange, he/she shall present his/her valid identity certificate and relevant documents certifying the transaction volume (including tax vouchers).
If an overseas individual holds a Foreigner Permanent Residence ID Card, he/she will be entitled to the equivalent amount of US $50,000 for the annual facilitation of foreign exchange purchase.
(1) If the amount of foreign currency deposited by an individual on the same day does not exceed the equivalent amount of US $5,000, he or she can go to the bank directly with his or her valid ID card;
In excess of $5,000, the bank must also provide proof of the source of the cash.
(2) If an individual withdraws foreign currency cash less than US $10,000 on the same day, he or she may directly go to the bank with a valid ID card;
If the amount exceeds the equivalent of US $10,000, it shall be handled with valid ID card, proof of withdrawal purpose and other materials.
For example, if B plans to travel abroad and needs a small amount of cash in foreign currency to pay for incidental expenses, he can withdraw it directly from the bank using a valid ID card.
It should be noted that large foreign currency cash transactions are usually closely related to criminal activities such as fraud, gambling and money laundering.
Most countries have strict regulations on foreign cash.
In addition, according to relevant regulations on anti-money laundering, foreign exchange management and its own risk management system, the bank will generally take the initiative to conduct due diligence on some abnormal, suspicious and large transactions, including requiring individuals to provide proof materials. If the materials provided by individuals cannot prove the authenticity and legality of foreign exchange transactions, the bank can refuse to handle them.
