Analysis of Legal Risks of Illegal Currency Exchange

Recently, the Supreme People's Procuratorate and the State Administration of Foreign Exchange jointly released several typical cases in the foreign exchange field, clarifying the legal risks of illegal Exchange Currency behavior. These cases reveal many misconceptions people have about Exchange Currency behavior, which are worth our attention.

Legal Risks of Providing Bank Account for Collections

There are two cases involving providing bank accounts for illegal Exchange Currency activities for others:

1. Case of Li Mou Yi: Li Mou Yi provided assistance to Li Mou Jia in illegally engaging in fund settlement and Exchange Currency trading. Although there were mitigating circumstances, it still constitutes a crime, and the prosecutor's office made a decision not to prosecute.

2. The case of Chen Hong and Wu Rong: The two provided bank accounts for their relative Chen XX for illegal Exchange Currency. Although they did not profit, the prosecution still determined that a crime was committed, but decided not to prosecute.

This indicates that even just "helping" to provide an account, without directly participating in Exchange Currency, may still face criminal legal risks. We should not have a mentality of luck and provide accounts for others to conduct suspicious transactions.

Introduction of Exchange Currency Risks by Financial Practitioners

In case four, insurance agent Fan and others introduced clients to engage in illegal Exchange Currency without charge in order to maintain customer relationships. Although they were not prosecuted due to the minor circumstances, they still face high administrative fines.

This serves as a reminder for those engaged in immigration, overseas property, finance, and other businesses that they should not introduce illegal Exchange Currency channels to maintain clients or facilitate transactions, as even non-compensated actions may constitute a crime.

Risks of Conducting Currency Exchange Business Abroad

In Case Five, Yao was engaged in currency exchange business in Russia, but was held criminally liable due to involvement with domestic funds. This indicates that even when conducting legal currency exchange operations abroad, once domestic funds are involved, there may still be domestic criminal risks. Chinese citizens need to exercise extra caution when engaging in related activities overseas.

Risks of Selling Legal Foreign Exchange

Case six shows that even if one sells foreign exchange obtained legally, if the amount is large or one knows that the other party has illegal purposes, they may still face legal risks. Although in this case, Mr. Yao was ultimately not prosecuted, his company was still fined heavily.

Conclusion

With the development of financial technology, illegal Exchange Currency methods are becoming increasingly concealed and complex. Our country is also intensifying its crackdown on foreign exchange violations. As individuals and businesses, it is essential to raise awareness and conduct foreign exchange transactions through legal channels, avoiding any sense of complacency. Once involved in a case with a substantial amount, one may face severe legal consequences.