China Bank Account Problems for Foreigners: Solutions

Banking in China as a foreigner has become increasingly complicated. From difficulty opening accounts to sudden freezes, many expats face frustrating banking problems. Here's what you need to know and how to handle common issues.

Opening a Bank Account

Why It's Getting Harder

Banks have tightened requirements due to:

• Anti-money laundering regulations
• Fraud prevention measures
• Stricter identity verification
• Risk management policies

What You Need

• Passport with valid visa
• Work permit or residence permit (increasingly required)
• Chinese phone number
• Proof of address (rental contract, utility bill)
• Employment proof (some banks)

Best Banks for Foreigners

Generally more foreigner-friendly:

• Bank of China (中国银行)
• ICBC (工商银行)
• China Merchants Bank (招商银行)
• HSBC China (for those who qualify)

Account Freezes

This is one of the most alarming issues foreigners face.

Common Reasons for Freezes

• Suspicious transactions: Large or unusual transfers
• Fraud investigation: Your account received money from a fraud victim
• Expired documents: Visa or work permit expired
• Court orders: Related to legal disputes
• Tax issues: Unpaid taxes flagged
• AML flags: Anti-money laundering system triggers

What to Do If Your Account Is Frozen

1. Visit the bank: Ask for the specific reason
2. Get documentation: Request written explanation
3. Check if it's police-related: Bank may direct you to local police
4. Gather evidence: Proof of legitimate income/transactions
5. Consult a lawyer: If the freeze is related to legal issues

Fraud-Related Freezes

A common scenario: Someone who was scammed transferred money that eventually reached your account (often through multiple hops). Police freeze all accounts in the chain.

To resolve:

• Cooperate with police investigation
• Prove the legitimate source of your funds
• Provide transaction records and explanations
• Be patient — these investigations take time

Transferring Money Out of China

Legal Limits

• $50,000 USD equivalent per year for personal foreign exchange
• Legitimate income can be transferred with proper documentation
• Salary transfers require tax payment proof

Required Documents for Large Transfers

• Tax payment certificates
• Employment contract
• Salary payment records
• Passport and work permit

Common Problems

• Bank refusing transfers without clear explanation
• Requests for excessive documentation
• Delays in processing
• Different requirements at different branches

Account Closure Issues

When leaving China, closing your account properly is important:

• Transfer remaining funds before your visa expires
• Keep tax records for future reference
• Cancel any linked services (phone, utilities)
• Get written confirmation of closure

Mobile Payment Issues

WeChat Pay and Alipay have become essential in China:

Common Problems

• Account restrictions or freezes
• Difficulty linking foreign cards
• Verification failures
• Transaction limits

Solutions

• Link a Chinese bank account instead of foreign card
• Complete real-name verification
• Contact customer service (often Chinese only)
• Use the international versions if available

When to Seek Legal Help

Consider consulting a lawyer if:

• Account frozen due to legal/police matters
• Large sums of money are inaccessible
• You're accused of illegal transactions
• Bank refuses to explain or resolve the issue
• You need to transfer significant funds out of China