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Chinese authorities restrict officials' overseas travel

2012/05/26 20:48

Taipei, May 26 (CNA) The Communist Party of China has placed travel restrictions on officials, their spouses and children in anattempt to prevent them from fleeing the country and transferringfunds abroad.

The CPC Central Commission for Discipline Inspection introduced the restrictions at a meeting that took place May 23, according to Chinese media reports.

In addition, anti-money laundering inspections will be conducted, as well as monitoring of cross-border finances, fighting underground loan sharks and stopping capital from flowing abroad.

The issue of officials or members of state companies transferring misappropriated funds caught the CPC's attention in March,when Sun Fengxi, an Agricultural Bank of China Jiangsu branch manager, wired 200 million Chinese yuan (US$31.41 million) abroad and fled with his family.

According to a survey on funds embezzled from state companiesconducted by the The People's Bank of China in 2011, more than US$120 billion has been wired out of China over the past 10 years.

The maximum foreign currency exchange per year is capped at US$50,000 per person in China, prompting the commission to focus its investigations into how officials were able to transfer large sums abroad.