Short answer: as an individual you can buy foreign currency through a bank up to the equivalent of USD 50,000 per year, and carry out up to USD 5,000 in cash with no permit at all. Between USD 5,000 and USD 10,000 you need a bank-issued carrying permit, and above USD 10,000 a permit from the local branch of the State Administration of Foreign Exchange (SAFE). Move larger sums through unlicensed converters, or by borrowing other people’s quotas, and the issue stops being administrative and can become a criminal case.

What the limits actually are

The cash rules come from the Interim Measures for the Administration of Carrying Foreign Currency Cash into and out of China (Hui Fa [2003] No. 102). Outbound, cash up to the equivalent of USD 5,000 is released by customs without a permit; USD 5,000 to USD 10,000 requires a carrying permit issued by a bank; more than USD 10,000 requires a permit from the local SAFE office. Inbound, cash above the equivalent of USD 5,000 must be declared to customs.

Bank transfers run on the annual facilitation quota: each individual may purchase foreign exchange up to the equivalent of USD 50,000 per calendar year, and the settlement quota is counted separately. Where there is a genuine need above the quota, such as overseas tuition or medical treatment, the transaction can still be handled with supporting documents after bank review.

Where legality ends and the criminal law begins

Splitting a large amount across relatives’, friends’ or employees’ quotas — the practice known locally as ants moving house — is exactly what regulators treat as evading foreign exchange administration. Genuine transfers for your own documented needs are one thing; organised quota-splitting for someone else is another.

Buying or selling foreign currency outside approved venues is the second trap. That includes offsetting, where RMB is paid to a domestic account today and the foreign currency is released overseas tomorrow; the 2019 judicial interpretation expressly treats it as disguised foreign exchange trading. It is prosecuted as illegal business operation under Article 225 of the Criminal Law, and under the same interpretation (Fa Shi [2019] No. 1) illegal turnover of RMB 5 million, or illegal gains of RMB 100,000, is already serious circumstances; RMB 25 million or RMB 500,000 is especially serious.

Article 190 of the Criminal Law targets companies and other units that keep foreign exchange abroad, or illegally move domestic foreign exchange offshore, in violation of state regulations. Where the amount is relatively large, the unit is fined between 5 and 30 percent of the amount involved and the persons directly in charge face up to five years; large amounts or other serious circumstances carry five years or more.

What this means in practice

Banks file suspicious transaction reports, and repeated small transfers to the same overseas beneficiary, or a friend who converts RMB for you for a fee, build a record that is easy to read. Once a case is opened the funds can be frozen for the length of the investigation, and a foreign national who is convicted can be deported in addition to the sentence.

A typical scenario (hypothetical)

A trader needs USD 800,000 for supplier payments overseas. He has already used his own USD 50,000 quota, and an intermediary offers the usual pitch: pay RMB domestically and collect the dollars in Hong Kong. At that level of turnover the intermediary is already in serious circumstances territory under Article 225, and anyone who keeps using the same channel is exposed too. The hypothetical point is simply that the size of the sum, not the intention behind it, decides which track the case lands on.

FAQ

Q: How much cash can I take out of China?

A: Up to the equivalent of USD 5,000 without any permit; USD 5,000 to USD 10,000 with a bank-issued carrying permit; above USD 10,000 with a permit from the local SAFE office. Bringing in more than USD 5,000 in cash must be declared to customs.

Q: How much can I transfer abroad through a bank each year?

A: The annual facilitation quota is the equivalent of USD 50,000 per person, with purchase and settlement counted separately. Documented genuine needs above that can still be processed with supporting papers.

Q: Is it illegal to use a family member’s quota?

A: Borrowing quotas to split a large payment breaches foreign exchange administration and is a recognised red flag. Doing it repeatedly as a service for other people can turn into a criminal case under Article 225.

Q: When does moving money abroad become a crime?

A: Illegal turnover of RMB 5 million or illegal gains of RMB 100,000 is serious circumstances; RMB 25 million or RMB 500,000 is especially serious, under Fa Shi [2019] No. 1.

Q: Can a company be prosecuted for sending money offshore?

A: Yes. Article 190 covers a unit that keeps foreign exchange abroad or illegally moves domestic foreign exchange offshore where the amount is relatively large: a fine of 5 to 30 percent of the amount involved and up to five years for the persons in charge, or five years and more in serious cases.

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Wang Guan | Co-founder, Beijing Haolue Law Firm | +86 17813108512