(ECNS) -- Chinese banks are required to report overseas spending by domestic accounts beginning Aug. 21 amid growing efforts to fight money laundering.
In a statement in June, the State Administration of Foreign Exchange (SAFE) said China's banks will be asked to report on a daily basis card holder withdrawals in overseas countries and regions starting Sept. 1, as well as any bank transactions exceeding 1,000 yuan ($148).
SAFE issued a new rule on Thursday, setting the effective date at 11 days earlier. An official with the administration said the new measures aim to strengthen management of illegal transactions abroad.
It added it is not an effort to manage foreign exchange policies or respond to exchange rates.
Bank cards have become the major overseas payment tools for Chinese. In 2016, transactions made by domestic bank card holders overseas surpassed $120 billion, according to the foreign exchange regulator.
The new rule will not add any cost to individuals who spend abroad as banks are required to report the information.
Dong Zheng, editor-in-chief of personal finance website 5icredit.com, said domestic bank cards have been used to withdraw money in foreign countries under the cover of false deals, including jewelry or watch purchases.
Dong added the new policy means that those who make frequent transactions over 1,000 yuan abroad face a bigger chance of being watched for suspected money laundering.
