Customs Makes Headway Against Currency SmugglingThe Guangzhou Customs service in Guangdong Province is reporting success in its battle against renminbi and foreign currency smuggling, a customs service report said.Twenty-eight currency smuggling cases were handled by the customs service during the first quarter of this year. They involved $3.89 million in Hong Kong currency (US$430,000) and 2.41 million yuan (US$290,000). In China, people are not allowed to privately take more than 6,000 yuan (US$722) across international borders without the permission of currency administration departments. Foreigners are allowed to take less than US$5,000 (or the equivalent) across borders, but Chinese mainland residents who take foreign currencies out of the country must get a permit from specific foreign currency administrative departments, and the transfer must be certified by a Chinese bank. But the customs service said some people were trying to circumvent the government's currency regulations and take money out of China without required permits and certifications. On March 10, a traveller named "Zhuang" was discovered carrying 1.02 million yuan (US$120,000) without reporting to customs, according to a customs report. The punishment Zhuang faces was not specified by customs. According to Lin Jianping, an official with the Guangzhou Customs service, money recovered by customs investigators during antismuggling operations will be confiscated, and those who violate the law can be fined as much as 30 per cent of the amount being smuggled. Experts believe that with the implementation of the real-name deposit system which was introduced on April 1, currency outflows to other countries can be expected. People who have illegal incomes or irregular bank accounts no longer dare to store their ill-gotten money in banks. Some estimates indicate that before the real-name banking system was implemented, nearly 100 billion yuan (US$12 billion) in suspect funds had been deposited in Chinese individuals' bank accounts. Some of those accounts were opened in false names to conceal the fact that the funds are, in reality, public funds. For those people, smuggling may be used to hang onto their illegally obtained fortunes. Since late March, Lin said, customs authorities have strengthened their inspections to block currency smuggling. |
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