China Union Pay has banned Chinese customers from buying overseas insurance policies to prevent investments flowing out of China. In a statement, UnionPay International said mainland Chinese clients using UnionPay-issued debit and credit cards could only purchase "accident, illness, and tourism-related insurance" abroad and transactions would be capped at $5,000. China UnionPay Co. on Saturday banned Chinese customers from purchasing overseas insurance products other than accident and medical-related policies, as authorities move to stem capital outflow by narrowing a popular gateway for shifting money abroad. The move comes as the U.S. government is considering imposing sanctions on Chinese banks that do business with North Korea.
China Union Pay has banned Chinese customers from buying overseas insurance policies to prevent investments flowing out of China. In a statement, UnionPay International said mainland Chinese clients using UnionPay-issued debit and credit cards could only purchase "accident, illness, and tourism-related insurance" abroad and transactions would be capped at $5,000. The move comes as the U.S. government is considering imposing sanctions on Chinese banks that do business with North Korea.