Contents
In essence, there are only four ways to circumvent financial foreign exchange regulation.
1. Break the whole into pieces
2. Counter-trading
3. False Trade
4. False Investment
Please note that what we are discussing today is based on the premise of "legality"~
Breaking the whole into pieces
According to national regulations, each person has a foreign exchange purchase quota of 50,000 US dollars per year. So if you ask your family and friends to help you, and you can get 10 people, you will have 500,000 US dollars...
Legal, but risky.
It’s okay if it’s on a small scale and a few times occasionally, but if money is transferred to the same person frequently and continuously without a reasonable explanation, then it is obvious that this person is transferring assets like ants moving house and intentionally evading supervision, and the account is at risk of being blocked.
According to another national regulation, you can carry cash of less than 5,000 US dollars when leaving the country. So the head-to-head tactic comes again.
In the past few years, many people took money out of the country by working on infrastructure projects. For a larger project, hundreds of workers would go there. Of course, this is not very practical for ordinary people. After all, unless you are very familiar with the boss, why would he help you? This is not only troublesome for him, but also risky.
When purchasing agents were more popular in Hong Kong a few years ago, many agents would also help to take money out. Recently, there are fewer purchasing agents going to Hong Kong. Some black organizations have targeted cross-border students. If your children are studying in Hong Kong, you must declare it in advance and never let them be exploited by people with bad intentions.
Counter-Knocking
In fact, all banks and financial institutions use the logic of counter-trading. For example, if you transfer 50,000 yuan from country A to country B, the bank will not really help you transfer the 50,000 yuan directly.
In essence, there are other customers in their network who need to withdraw money in A, and the 50,000 you deposited is given to them, while the money you withdraw in country B is deposited by other customers locally. This is called cross-trading.
This business is legal in many countries, and our money houses have local formal financial licenses. Legal means they are regulated, so whether you are remitting or receiving money, there are local regulatory filings, which means you are protected.
However, this is different in China, because domestic banks are not legal, so the risk is very high. What if the bank runs away after you transfer the money?
Also, your money may be earned legally, but other counterparties may not be. You transfer money to a designated account, or receive money from a designated account. What if the police find out that the other party is involved in a crime? How can you prove that you have nothing to do with the other party's illegal behavior?
Fake trade
Real trade means that you use RMB to buy a bunch of goods in China, then ship them to the United States and sell them, earning US dollars from the United States. Your assets are transferred from China to the United States, and your money is converted from ¥ to $.
The so-called false trade is the same as mentioned above, exchanging 💰 for goods and shipping them out.
Transferring assets through Bitcoin is essentially the same as what is mentioned above. The only difference is that the above method is to exchange money for goods and ship them out of the country, while they are just exchanging money for Bitcoin and shipping it out.
This method, whether it is real trade or fake trade, actually has the same difficulty. The difficulty is never in the subject itself, but in the trade channels, especially the sales channels.
If you are in the circle and have channels, then this is actually very simple and risk-free. For example, many wealthy people buy a lot of collectible gems and high-end luxury goods. Do you think they really have money but nowhere to spend it? They all have professional consultants, and the things they buy are less likely to depreciate, and may even appreciate. If they really need to cash out, they can buy a bag worth millions, a watch worth several million, and a set of jewelry worth tens of millions. They wear them and get on the plane. When they land, they can go straight to a second-hand store and sell them instantly. They may even make a profit compared to the original purchase price.
For ordinary people, whether it is Yiwu small commodities, high-end luxury goods, or Bitcoin, the essential question is: who will you sell them to when you go abroad?
If you are not in the circle, are you not afraid of being cheated? When you are abroad, you are unfamiliar with the place and you dare not call the police if someone robs you. Or, if you can't sell it at a high price, won't you lose money? If you can't sell it, won't you lose money?
Don't always listen to the stories of big shots. Big shots are in completely different situations from yours. Many big shots don't keep their money clean. When they go overseas, they sell at a discount, and even if they only get 600,000, they don't feel bad. But you earned your money through hard work. If your money fluctuates, and 100 becomes 60, you will be very upset.
Fake Investment
Finally, let’s talk about the fake investment with the highest technical content.
To put it bluntly, it’s not that domestic products cannot go overseas, but the approval process is very difficult and there are many restrictions.
For example, with domestic loans abroad, you can find a bank with overseas branches, deposit RMB in a domestic bank, and the overseas branch will lend you an equal amount of money overseas. Isn't that money going out? Or with domestic guarantees for foreign loans, you don't deposit money domestically, but use assets such as houses and stocks as collateral to let the bank's overseas branches lend money. Doesn't it sound simple?
But in fact, do you think the bank is owned by your family? Do you think that if you have money and assets in China, the bank will definitely lend you overseas money? The bank also has its own approval process and will examine the purpose of your overseas loan.
In addition, this type of business is essentially a loan, and loans must be repaid, and they must be repaid in the original way. Failure to do so will be considered a breach of contract.
Many people do not understand banking business at all. They just say that they can use their house as collateral to take out loans. If they don't pay back the money, the bank will take the house away and the debt will be settled. Who told you that the debt is settled? If you borrow money overseas, you have to repay it overseas. Otherwise, you will default on the loan and your credit will be affected immediately.
If the domestic bank takes away the assets, then the loan will be completely considered as non-performing, which means it will be handled as non-performing. All the bank personnel involved in your business may be held accountable. If you want to get the money out, can you convince the bank to be willing to take such a big responsibility for you?
Another example is QDLP, Qualified Domestic Limited Partners. Many places have pilot policies that allow for simplified approval and investment in overseas projects. But in principle, this is a private equity fund investment, and the project must also be reviewed. Moreover, the investment must be withdrawn, and after the withdrawal, the funds must in principle be returned to the country by the original route.
Let's talk about some practical stuff
Is there room for maneuver? Yes, I have done it before. Read the following content carefully, it is quite interesting, especially for big guys with substantial assets!
Set up a manager that meets the requirements and initiate a private equity investment fund in the form of a limited partnership. If there is a really good project overseas and there is no problem with local regulatory review, then according to the requirements of QDLP, domestic funds will flow out of the country and be invested in high-quality overseas projects. It seems like just a few lines of text, but it is actually very tiring to review and approve.
Next comes the trick!
Ahem. After a few years, the project has problems and cannot be exited. This is also normal, especially in the current economic environment. After all, investment cannot be without risks… The project cannot be exited, but the fund has expired, so the fund is liquidated directly. Although the fund is liquidated, investors cannot lose all their money. In order to appease investors, the investment targets are distributed as they are. Investors will change from investors in domestic funds to shareholders of overseas projects. This is also a routine operation.
A few months later, hehe! The market suddenly changed, and the project suddenly became valuable again. After all, the primary market always has ups and downs.
If the project is good, then the investor as a shareholder of the project can sell the project and exit is reasonable. The investors sell the project directly in their personal name as project shareholders, which has nothing to do with the fund. Besides, the fund has been liquidated and there is no way to return the original route, so the money will naturally remain overseas. Hahahahahahahaha, perfect! !
This wave of operations appears to be legal and compliant.
But the problem is that the regulators are not stupid. If you do it once or twice, the regulators may turn a blind eye. But if you do it every day, do you think the regulators will let you off? Since you can't do it every day, this is a rare opportunity, so...
Summarize
Today's content is very dry. This is very similar to tax. The country is not opposed to tax avoidance in essence. In fact, the country has issued many tax reduction and exemption policies. If you have the ability to apply these policies, then you are reasonably avoiding taxes. If you can't apply them but still try to avoid them, you will be fined to death if you are caught.
So, you have to think about whether you want to use a difficult method or a risky method.
If you are willing to take risks, you must be prepared to lose your principal or even receive regulatory penalties.
And if you are willing to increase the difficulty, then you have to think about how much money and energy you will spend to reach this difficulty, and whether it is worth spending so much time, money and energy on these.
Finally, you must remember that anyone who tells you that he has a simple, convenient, low-cost and zero-risk method is a liar.
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