1.Is it still SAFE to send money to China?—-Many bank accounts are blocked in China
These days, some may have read the news about “Chinese Authority Freezes Thousands of
Cryptocurrency Traders’ Bank Accounts”, “Beijing blocked my bank accounts”, or something like this.
People start asking if it is still safe or suitable to send money to China, especially for those who are
engaged in import and export business. Things are that the Chinese authority does freeze
some bank accounts for some reason, which we will illustrate in the following article in Chapter 1 & below:
2. However, you don’t have to worry about it and
there are ways to solve this problem
Chapter 1: Why are these bank accounts frozen?
1. China is cracking down on underground banks.
Learned from the State Administration of Foreign Exchange that after over four months’ joint study
and judgment with the public security organs, three super large underground bank cases have
been solved in Zhejiang Province and several criminal gangs have been arrested. These cases
are typically complex cases in which underground banks and upstream crimes are involved.
In the Õrst half of this year, the public security organs and the foreign exchange bureau jointly
studied and judged that some enterprises in Zhejiang had abnormal business conditions.Among them,
many domestic and foreign enterprises have abnormal related transactions, and the records of import
and export of goods are seriously unreasonable. Criminals use import payment channels to purchase
foreign exchange from banks in the name of “paying for goods imported from bonded supervision
sites”. After being transferred layer by layer, the foreign exchange is converted into false export payment.
Learned from the authority that in the early three quarters of this year, the State Administration of
Foreign Exchange cooperated with public security organs to crack down on nearly 60 cases of
underground banks, with Õnes and conÕscations exceeding 300 million yuan. In the investigation
and handling of cases, the public security organs have made breakthroughs in cracking down on
underground banks in many regions of the country and investigated and dealt with several
complex cases interwoven with upstream crimes such as tax rebate fraud and cross-border
2. Abnormal problems of corporate account transactions involving
telecom fraud and other illegal and criminal acts.
To crackdown on telecom fraud, money laundering, and other illegal and criminal acts, the3.
Government Announcement about Bank Frozen in Different Language People’s Bank of China’s
supervision has been upgraded. Commercial banks have cooperated with the public security
department to check the telecom fraud accounts and comprehensively investigate all enterprises on
their corporate accounts. Recently, the person in charge of an enterprise should pay attention to answering
the phone call from the bank. Refusing to answer or not answer will be regarded as unable to contact
and the account will get frozen. In May 2020, Hangzhou central sub-branch of the People’s Bank of China held
a promotion meeting on cracking down on new types of telecom network crimes and cross-border gambling among
Õnancial institutions across the province. The bank account back-checking and accountability of enterprises involved
in new-type crimes and crimes in telecommunication networks were reported. The bank account business of newly
opened units in 4 banking outlets was suspended for 3 months, and that of newly opened corporate bank accounts of
18 banking outlets was suspended for 1 month. Under the punishment, banks began to neglect the opening of small and
3. Government Announcement about Bank Frozen in Different Language