China's forex control

China's forex control

SHANGHAI (AFP): China is tightening foreign exchange control
in Shanghai by requiring all foreign currency account holders to
apply for an intelligence card which tracks their transactions,
officials said yesterday.

The Shanghai branch of the People's Bank of China (PBOC) and
the municipal administration of foreign exchange control issued a
notice September 27 requiring customers to apply for their cards
by October 25, sources said.

Some bankers said the card violated banking confidentiality
but added that they had no choice but to comply.

The SAEC conducted periodic checks on customers to ensure
their transactions were within the scope allowed by the
certificates, he said.

The cards cost clients 500 yuan each (60 dollars) and the
ruling affects only Shanghai banks and their customers
nationwide.