Legal analysis: It depends on the amount exchanged. Due to the special regulations on foreign exchange management, residents must exchange foreign currency at banks approved by the State Administration of Foreign Exchange or designated foreign exchange exchange points, otherwise it will be regarded as illegal exchange of foreign currency. If it is seized, relevant funds will be confiscated and a fine will be imposed. Individuals who illegally transfer the accumulated equivalent of more than US$ 200,000 will be investigated for criminal responsibility and can be sentenced to fixed-term imprisonment of not more than three years.

Legal basis: Article 191 of the Criminal Law of People's Republic of China (PRC) covers up and conceals the income, sources and nature of drug crimes, organized crimes of underworld nature, terrorist activities, smuggling crimes, corruption and bribery crimes, crimes of disrupting financial management order and financial fraud crimes. Whoever commits any of the following acts shall be confiscated and sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also or shall only be fined. If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years and fined: (1) providing a capital account; (2) Converting property into cash, financial bills or securities; (3) Transferring funds by transfer or other payment and settlement methods; (4) Cross-border transfer of assets; (5) concealing or disguising the source and nature of the proceeds of crime and their proceeds by other means. If a unit commits the crime mentioned in the preceding paragraph, it shall be fined, and the directly responsible person in charge and other directly responsible personnel shall be punished in accordance with the provisions of the preceding paragraph.