New | China’s SAFE slaps 100,000 yuan annual cap on overseas UnionPay cash withdrawals

China’s State Administration of Foreign Exchange has slapped an annual cap on overseas cash withdrawals for UnionPay cardholders at 100,000 yuan (US$15,713) or its equivalent per card, effective next year.

The new rules are in addition to the 10,000 yuan equivalent daily cap per UnionPay cardholder. Between October 1 and December 31 this year, overseas withdrawal is limited to 50,000 yuan equivalent, according to a SAFE circular sent to banks and seen by the South China Morning Post.

SAFE requires banks to add accounts that exceed the cap to a watch-list and forbid further cash withdrawals outside of China. The administration said the measures were to rein in potential money-laundering activities.

Earlier this month, SAFE ordered banks to monitor “abnormal” accounts that register frequent cross-border fund transfer.