international banking
Sending money from China
<p>I have an uncle in China who is trying to make some investments in Canada. As you may know, there are foreign exchange controls in China, but everybody goes around them. One easy to do it is to match up money coming into China with money going out of China. </p>

<p>I'm trying to help him move the money out (+$1 million USD). It seems the transaction would need to go through my Hong Kong bank account. I would then need to wire it back to the US into my US account. Then to the project. </p>

<p>Would helping him this way violate any US laws?</p>

<p>As long as you don't lie in the course of these transactions, and you comply with U.S. tax rules, you will not be breaking any U.S. laws.</p>

<p>If you do something like this in your personal accounts you will have personal reporting liabilities to the IRS.  (Though if you have a Hong Kong bank account you already have that obligation.)  The IRS may demand more information, and you may have a tax liability depending on how you explain the source of the funds.  An accountant could detail all of the IRS and tax implications.</p>

<p>When you tell your U.S. bank that you want to wire in a large sum from an off-shore personal account they will alert you to whatever "anti-money-laundering" requirements would apply.  (AFAIK those are just reporting requirements on their end.)</p>
