On June 10, the State Administration of Foreign Exchange (SAFE) reported 10 typical cases of foreign exchange violations, strengthened the supervision of the foreign exchange market, and severely cracked down on illegal foreign exchange trading through underground banks.

From the content of the notification, these 10 cases are illegal foreign exchange trading cases, involving two enterprises and eight individuals, from January 2018 to March 2020, and the penalty information is included in the credit information system of the People's Bank of China.

Among the two enterprises, Zhongtai Huipurchase E-commerce (Shenzhen) Co., Ltd. illegally bought and sold 14 foreign exchange through underground banks, with a total amount of 1.301 million US dollars, constituting illegal foreign exchange trading, and was fined 1.103 million yuan. Shenyang Huarui Century Investment and Development Co., Ltd. was fined RMB746,000 for seven illegal transactions of foreign exchange amounting to $834,000 through underground banks.

Among the 8 individual cases, the highest fine was a Tianjin citizen surnamed Lang. In October 2018, Lang illegally traded 43 foreign exchange transactions through underground banks, with a total amount of 7.743 million US dollars, constituting illegal foreign exchange trading, and was fined 6.489 million yuan.

Appendix: Notice of the State Administration of Foreign Exchange on cases of foreign exchange violations

Case 1: Zhongtai Huibuy E-commerce (Shenzhen) Co., LTD. Illegal trading of foreign exchange

From November 2019 to January 2020, Zhongtai Huibuy E-commerce (Shenzhen) Co., Ltd. illegally bought and sold 14 foreign exchange transactions through underground banks, with a total amount of $1.301 million.

This act violates Article 32 of the Regulations on the Administration of Foreign Exchange Settlement, Sale and Payment, and constitutes illegal foreign exchange trading. According to Article 45 of the Regulations on Foreign Exchange Control, a fine of 1.103 million yuan was imposed. The penalty information shall be incorporated into the credit investigation system of the People's Bank of China.

Case 2: Shenyang Huarui Century Investment Development Co., Ltd. illegal trading of foreign exchange

From June to October 2019, Shenyang Huarui Century Investment and Development Co., Ltd. illegally bought and sold foreign exchange seven times through underground banks, with a total amount of $834,000.

This act violates Article 32 of the Regulations on the Administration of Foreign Exchange Settlement, Sale and Payment, and constitutes illegal foreign exchange trading. According to Article 45 of the Regulations on Foreign Exchange Control, a fine of 746,000 yuan was imposed. The penalty information shall be incorporated into the credit investigation system of the People's Bank of China.

Case 3: Illegal foreign exchange trading case of a Heilongjiang native car

From January 2018 to May 2019, Cha illegally bought and sold foreign exchange 47 times through underground banks, with a total amount of $3.125 million.

This act violates Article 30 of the Measures for Individual Foreign Exchange Control and constitutes illegal foreign exchange trading. In accordance with Article 45 of the Regulations on Foreign Exchange Control, a fine of RMB 2.0878 million was imposed. The penalty information shall be incorporated into the credit investigation system of the People's Bank of China.

Case 4: Hubei nationality Tan Mou illegal foreign exchange trading case

From March 2018 to April 2019, Tan illegally bought and sold foreign exchange through underground banks for 146 transactions, with a total amount of $4 million.

This act violates Article 30 of the Measures for Individual Foreign Exchange Control and constitutes illegal foreign exchange trading. According to Article 45 of the Regulations on Foreign Exchange Control, a fine of 2.596 million yuan was imposed. The penalty information shall be incorporated into the credit investigation system of the People's Bank of China.

Case 5: Yunnan nationality Huang illegal foreign exchange trading case

From June 2018 to March 2020, Huang illegally bought and sold foreign exchange through underground banks for 20 times, with a total amount of 3.509 million US dollars.

This act violates Article 30 of the Measures for Individual Foreign Exchange Control and constitutes illegal foreign exchange trading. According to Article 45 of the Regulations on Foreign Exchange Control, a fine of RMB 2.953 million was imposed. The penalty information shall be incorporated into the credit investigation system of the People's Bank of China.

Case 6: Tianjin Lang illegal foreign exchange trading case

In October 2018, Lang illegally bought and sold foreign exchange through underground banks for 43 times, with a total amount of $7.743 million.

This act violates Article 30 of the Measures for Individual Foreign Exchange Control and constitutes illegal foreign exchange trading. According to Article 45 of the Regulations on Foreign Exchange Control, a fine of 6.489 million yuan was imposed. The penalty information shall be incorporated into the credit investigation system of the People's Bank of China.

Case 7: Cao, a native of Shandong Province, illegally traded foreign exchange

From October 2018 to February 2019, Cao illegally bought and sold foreign exchange through underground banks for 12 times, with a total amount of 843,000 US dollars.

This act violates Article 30 of the Measures for Individual Foreign Exchange Control and constitutes illegal foreign exchange trading. According to Article 45 of the Regulations on Foreign Exchange Control, a fine of 655,000 yuan was imposed. The penalty information shall be incorporated into the credit investigation system of the People's Bank of China.

Case 8: Illegal foreign exchange trading case of Wang from Tianjin

In October 2018, Wang illegally bought and sold foreign exchange for 10 times through underground banks, with a total amount of 2.707 million US dollars.

This act violates Article 30 of the Measures for Individual Foreign Exchange Control and constitutes illegal foreign exchange trading. According to Article 45 of the Regulations on Foreign Exchange Control, a fine of 2.275 million yuan was imposed. The penalty information shall be incorporated into the credit investigation system of the People's Bank of China.

Case 9: Xue from Fujian illegally traded foreign exchange

In February 2019, Xue illegally bought and sold foreign exchange for two transactions through underground banks, with a total amount of $929,000.

This act violates Article 30 of the Measures for Individual Foreign Exchange Control and constitutes illegal foreign exchange trading. According to Article 45 of the Regulations on Foreign Exchange Control, a fine of RMB 788,000 was imposed. The penalty information shall be incorporated into the credit investigation system of the People's Bank of China.

Case 10: Xu, a native of Shandong Province, illegally traded foreign exchange

In September 2019, Xu illegally bought and sold foreign exchange for 35 transactions through underground banks, with a total amount of $1.7 million.

This act violates Article 30 of the Measures for Individual Foreign Exchange Control and constitutes illegal foreign exchange trading. According to Article 45 of the Regulations on Foreign Exchange Control, a fine of 1.43 million yuan was imposed. The penalty information shall be incorporated into the credit investigation system of the People's Bank of China.

(Source: Thepaper.cn)