Zhejiang Commercial Bank Hefei Branch: Beware of "Underground Exchange" Risks and Conduct Cross-Border Remittances Properly

From: Xinhua Finance

As the demand for cross-border study abroad, outbound tourism, and overseas investment continues to grow, foreign exchange exchange and cross-border remittance services are becoming more frequent. Recently, the Hefei branch of Zheshang Bank received an inquiry from a customer during routine service. The customer stated that their child is studying abroad and needs to make regular remittances for tuition and living expenses.

Previously, the customer saw on an online platform that someone posted information about “preferential exchange rates” and “fast transfers,” claiming they could help with currency exchange through “private channels,” offering better rates and lower fees than banks. Before consulting the bank, the customer had already prepared to transfer RMB to the personal account provided by the other party as per their instructions.

After understanding the situation, staff at Zheshang Bank’s Hefei branch promptly warned the customer of the risks: such “underground currency exchange” conducted through personal accounts not only lacks security but may also involve illegal activities. Once the funds are transferred, if the other party disappears or refuses to fulfill their promise, it is often difficult to recover the money. The staff explained the legitimate procedures for cross-border remittance, the channels available, and relevant foreign exchange policies to help the customer understand how to conduct compliant cross-border transfers.

After patient explanation from the staff, the customer realized the risks involved, ultimately abandoning the idea of using online intermediaries for currency exchange, and instead completed the cross-border remittance through official bank channels. The customer said, “I just wanted to be convenient and get a better rate, but I didn’t expect such significant risks. Thanks to the bank’s timely reminder.”

In recent years, some illegal intermediaries have been posting information on social media platforms and online forums about “low-rate currency exchange” and “fast exchange,”诱导客户通过私人账户转账，进行所谓的“地下换汇”。This behavior not only poses significant financial security risks but may also be exploited by criminals to carry out scams or involve illegal foreign exchange trading.

Zheshang Bank’s Hefei branch reminds consumers: When handling cross-border remittance and foreign exchange exchange services, choose正规金融机构渠道，不要轻信网络上的“优惠换汇”或“内部渠道”等信息，也不要通过个人账户进行资金交易。同时，要妥善保护个人账户信息，增强风险防范意识。

In the future, Zheshang Bank’s Hefei branch will continue to strengthen the protection of financial consumer rights and promote financial knowledge, helping the public improve their ability to identify financial risks, and jointly create a safe,规范、清朗的金融网络环境。（Wang Zijun, Li Yaxin）

Editor: Jiang Nan

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