In China, officials in the banking system are facing a new round of restrictions on outbound applications. According to sources, starting from October 1st, officials at the department level and above can only apply to travel abroad once a year, even for official business trips, requiring a tedious approval process. While the official documents have not been publicly released, the regulation is already being implemented internally within the financial system.
It has been revealed by multiple insiders from China’s financial and banking sectors that officials from central financial enterprises directly under the State Council, such as banks, insurance companies, asset management companies, as well as state-owned financial investment platforms like CITIC and CIC, will now be restricted to one outbound trip per year, down from the previous limit of two trips annually. This new rule will officially take effect on October 1st. Ordinary employees’ outbound applications remain unaffected, but directors and above can only apply once a year.
A department-level official from a financial enterprise expressed helplessness in an interview, saying, “In the past, although approval was required, as long as the reasons were justified, most requests could be approved. Now, the process is very rigid, exceeding once is directly rejected.” Another retired official from last year added, “Even for official business trips, a detailed and intricate process needs to be followed.”
Insiders close to bank management revealed that the new regulations emphasize a “strict and tight” approach, and reiterate that all level branches must uniformly keep passports and individuals should not hold them privately.
In recent years, the Chinese authorities have continuously strengthened control over the financial system. As early as 2023, state-owned banks and central enterprises were reported to require officials to submit their passports and extend the approval period. Analysts suggest that this action is related to the authorities’ considerations for “risk prevention and stability maintenance”, aiming to prevent capital outflow, strengthen anti-corruption efforts, reflecting increased fiscal and forex pressures.
The scholar pointed out, “This is not a single policy but part of a package of tightening measures, the financial sector being sensitive, it is being targeted first.”
For the officials subjected to this regulation, it brings more helplessness. A manager from a branch of the Agricultural Bank of China in Nanjing stated, “Only being able to apply once a year means many opportunities to travel abroad are taken away. It has a significant impact on individuals and families. I think I may have to wait until retirement to truly go out and explore.”
Mr. Wang, a supervisor at the Beijing branch of the Bank of Communications, faced a similar dilemma. His child is studying in the UK, but as they had already traveled abroad during the Chinese New Year holiday this year, their summer vacation application was rejected.
“I asked why, they said they didn’t see the document. Later, a senior (bureau-level official) told me he could see the notification, but at my level, I couldn’t,” Mr. Wang said with a bitter smile. “Our family members are all abroad, but with only one opportunity to go overseas each year, even visiting relatives becomes difficult. The superiors say it’s for discipline and the bigger picture, but it impacts our family too much.”
As far back as 2006, authorities required some state-owned enterprise executives and financial institution managers to submit their passports and not travel abroad without approval, citing the prevention of corrupt individuals fleeing. Over the next decade, this practice gradually expanded to more industries. After entering the 2010s, the restrictions extended from “specific individuals” to general cadres, focusing especially on the financial, central enterprise, and energy sectors.
Following the outbreak of the Covid-19 pandemic in Wuhan in 2020, the Chinese authorities further tightened control over outbound travel, almost entirely freezing non-official trips until a slight relaxation in 2023. A scholar noted, “From preventing corrupt officials from fleeing overseas back then to the current restrictions on officials’ family visits and exchanges, the logic is consistent. Today, it is not just about fighting corruption but also involves capital flow, forex security, and political loyalty.”
With the space for free outbound travel within the banking system continuing to shrink, a manager at the Agricultural Bank of China in Nanjing exclaimed, “Even with legitimate needs, we often can’t go due to delayed approvals. This greatly impacts family visits and children’s education.”
The aforementioned scholar stated, “These restrictions are related to capital flight, information security, and reflect the tense fiscal and forex situation. It is not just about tightening discipline but also shows the authorities’ concerns about the domestic and external environment.”
In recent years, the Chinese Central Commission for Discipline Inspection has repeatedly emphasized that leading cadres must “keep focused and guard the national gate”, and important personnel should not hold foreign residence rights or long-term deposits. In this context, restricting outbound travel is not only for economic risk management but also for constraining the thoughts and behaviors of cadres.
Moreover, since the large-scale “Operation Fox Hunt” to pursue fugitives began in 2015, the authorities have gradually strengthened vigilance against the risk of flight. Due to their control over significant funds and information, financial, energy, and central enterprise officials are considered “high-risk groups”. It is officially recognized that simultaneous outflows of personnel and funds will impact economic and political security. Therefore, rigorous approval and centralized passport management have become normal practices within the financial system.
Some opinions suggest that China’s tightening trend demonstrates that the authorities are closely linking the cross-border movements of officials to national security concerns, aiming not only to prevent corruption but also out of concerns for the fiscal crisis and external pressures.