BEIJING – The new Chinese law that limits overseas cash withdrawals with personal bank cards entered into force on Monday with the aim of curbing criminal activities such as money laundering, terrorist financing and tax evasion.
The measure, announced by surprise on the night of Dec. 30, limits the annual amount that customers can withdraw at ATMs abroad to 100,000 yuan (about $15,400) per person, regardless of how many cards the customer has.
From 2003, the limit was set at 100,000 yuan per card, so those with several cards of different banks could get much higher amounts.
The Chinese State Administration of Foreign Currency warned in a statement that individuals who exceed this limit will see a suspension of overseas fund withdrawals in the current year and also the following year.
Official figures indicate that in 2016, of all bank cards used outside China to withdraw cash, 81 percent were used to obtain a maximum of 30,000 yuan, so the authorities consider that the new limit will meet Chinese travelers’ usual needs for cash.