Why Have Many Bank Accounts Been Frozen in China Recently?

Recently, many foreign trade companies’ own bank accounts have been frozen. This kind of problem also happened in the past, but recently the number has been unusually high. What’s the reasons?

China cracks down on the underground banks recently

Underground banks are often blended with illegal and criminal funds, and bank accounts are easily frozen by public security governments because of their direct or indirect relationship. As long as foreigners send money through a currency exchange company, almost every transfer will be frozen.

In order to put an end to capital transactions with underground banks, we have sorted out the high-risk collection and payment behaviors. Please pay attention:

1. The payment for foreign trade is not paid by the bank accounts of foreign businessmen or their designated foreign trade companies and freight forwarding companies, but by unfamiliar bank accounts.

2. Lending bank account.

3. Help others to collect, pay and transfer money on behalf of others.

Recently many accounts involved in the illegal case

The Ministry of Public Security requested that there are many accounts involved in the illegal case recently, so they have carried out a strictly investigation on this. Banks have also tightened controls on bank accounts, with many corporate and personal accounts closed. It's not just for foreigners. Many Chinese accounts have also been frozen.

If want to unlock the card, the card holder needs to go to the bank to inquire and solve the problem. The reason can only be inquired and solved at the bank counter,  no one else can inquire. Please pay attention to whether the bank has a return call.

Banks are cleaning up the dormant accounts

Recently, in order to strengthen account management and prevent the risk of telecom fraud, many banks such as China Construction Bank, China CITIC Bank and Postal Savings Bank have announced that they will clean up abnormal accounts. Some "dormant accounts" that have no transactions and no funds for a long time, as well as excessive accounts under the same customer's name, will be cancelled.

Measures after bank account freezing  

1)Keep records of communication information before payment, such as the record in Wechat and QQ .

2)Keep the trade authenticity certificates such as contract agreement, transaction documents and transaction flow.

3)Prepare business license, business site photos, office lease contract and other  authenticity certificates.

4)Take the initiative to contact with local public security government, communicate through telephone, SMS and other forms to understand the amount involved, the reasons for freezing and the conditions required for unfreezing.

5)Consult with banks, lawyers and relevant departments for opinions and suggestions in time.

6)After the preliminary preparation, go to the local public security government to communicate.