The central bank will keep a close eye on commercial banks’ burgeoning cross-border yuan business amid media reports that some lenders have helped wealthy mainlanders exceed caps on sending cash offshore.
The People’s Bank of China (PBoC) said it is aware of growing media reports about the expanding cross-border business and will monitor developments closely, Xinhua reported Thursday night.
The comment comes after China Central Television reported Wednesday that Bank of China’s (BoC) You Huitong money-transfer service helped wealthy mainlanders applying for overseas immigrant investor schemes send unlimited funds offshore.
Under existing mainland rules, individuals can transfer no more than US$50,000 out of the country each year.
BoC denied claims it was involved in money laundering, saying the bank launched a pilot cross-border yuan transfer program for investment immigration and overseas property purchases in 2011 in consultation with regulators.
The PBoC said cross-border yuan transactions have grown quickly over the last few years.
It called on financial institutions to stick to the letter of regulatory requirements.
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