SAFE Introduces New Oversight Requirements for Cross-Border Transactions Over $5,000 – Effective July 1, 2025
The State Administration of Foreign Exchange (SAFE) of the People’s Republic of China has announced a new set of regulatory measures, effective July 1, 2025, aimed at increasing oversight and transparency in cross-border financial activities.
Under the new directive, all inbound, outbound, or transit transactions involving amounts exceeding USD $5,000 will require prior registration and approval from SAFE, regardless of whether the transaction is conducted via traditional banking, online payment platforms, or the physical transport of cash.
📌 Scope of the Regulation
Effective July 1, the following categories of financial operations are subject to mandatory SAFE review:
Online international money transfers to or from China exceeding $5,000
Transit transactions passing through Chinese financial institutions or payment processors
Cross-border cash transportation in amounts above the set threshold
Digital asset transfers through platforms operating under Chinese jurisdiction or banking rails
🎯 Purpose and Compliance Goals
SAFE officials have emphasized that the regulation is not intended to restrict legitimate financial flows, but rather to:
Enhance anti-money laundering (AML) and know-your-customer (KYC) compliance
Improve traceability of high-volume financial transfers
Strengthen national foreign exchange security and data integrity
Ensure regulatory alignment with global financial standards
✅ Action Required by Individuals and Enterprises
Any entity or individual planning to initiate or route a transaction through China’s financial infrastructure after July 1 must:
Pre-register the transaction with SAFE if it exceeds $5,000
Submit documentation verifying the source and purpose of the funds
Obtain prior approval before funds are released or transferred
Failure to comply may result in delays, holds, or rejections of the transaction and may trigger further investigation.
🔄 Impact on Financial Institutions and Platforms
Payment service providers, crypto exchanges, and commercial banks operating in or through China are required to update their internal compliance protocols and ensure customers are informed of the new requirements. Additional scrutiny will be applied to foreign exchange-related operations, even for non-residents.
📅 Effective Date
The policy will be officially enforced starting July 1, 2025. SAFE encourages all stakeholders to review their cross-border payment workflows and initiate adaptation procedures without delay.
📞 Contact Information
For more details or clarification, please contact:
State Administration of Foreign Exchange (SAFE)
No. 18 Fuchengmenwai Street, Xicheng District, Beijing 100037, China
Tel: +86 10 6840 0000
Website: www.safe.gov.cn
