Highest penalty amount issued by FX regulator this year
Agency releases 23 cases of foreign exchange violations, issuing 82.351 million yuan in penalties to a wide variety of offenders
China’s foreign currency regulator is maintaining high-pressure control over all foreign exchange violations, issuing millions in stiff penalties to individuals and companies, the Economic Information Daily reported.
The State Administration of Foreign Exchange recently released 23 cases of foreign exchange violations, issuing 82.351 million yuan (US$12.082 million) in penalties.
It was the fourth time this year that the largest amount of recorded penalties were issued.
Aside from banks and foreign trade companies, even individuals who bought houses abroad or illegally buy and sell on the foreign exchange to repay overseas gambling debts were on the punishment list, as well as foreign language schools, which transferred funds abroad.
Major state-owned banks including ICBC, Bank of China and Bank of Communications, as well as joint-stock banks like Ping An Bank, China Merchants Banks were also punished.
Seven out of eight cases were due to the violation of Article 12 of the Foreign Exchange Control Regulations, which means many banks failed to perform due diligence to verify the authenticity of foreign exchange transactions.