SAFE News
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- Index number:
- 000014453-2019-0164
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- Dispatch date:
- 2010-03-22
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- Publish organization:
- State Administration of Foreign Exchange
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- Exchange Reference number：
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- Name：
- Preventing Risks, Serving Overall Interests, and Enhancing the Quality and Effectiveness of Foreign Exchange Inspections in an All-round Manner
Preventing Risks, Serving Overall Interests, and Enhancing the Quality and Effectiveness of Foreign Exchange Inspections in an All-round Manner
Recently, a meeting was held by the State Administration of Foreign Exchange (SAFE) to plan for foreign exchange inspection work in 2010.
In 2009 the foreign exchange administration departments at all levels earnestly implemented the overall planning for sustaining growth, preventing risks, and promoting an equilibrium in the balance of paymentsestablished by the SAFE for foreign exchange administration, and adopted a proactive posture to cope with the new challenges and new requirements brought about by the changes in external circumstances. New progress was made in the following areas: implementing special inspections and investigations; investigating and punishing illegal and criminal foreign exchange activities; promoting the construction of a cooperative mechanism for foreign exchange supervision; enhancing the approach for off-site inspections of foreign exchange transactions; strengthening the construction of internal control systems; carrying out major research programs; disseminating policy on a wide scale, and so forth. Satisfactory results were obtained.
The meeting pointed out that with the greater complexity and volatility of the circumstances in the balance of payments in 2010, along with the growing uncertainties regarding cross-border foreign exchange fund flows and greater pressures caused by the increasing net inflows of foreign exchange, the foreign exchange administration departments at all levels will be required to give full play to their law enforcement role at the forefront of foreign exchange inspections, take full advantage of their role in detecting illegal foreign exchange activities, give full scope to the functions of the cooperative mechanism for foreign exchange supervision, conscientiously fulfill their duties to investigate and punish illegal foreign exchange activities, preserve law-based order in the foreign exchange market, and safeguard the financial security of the nation.
The general idea behind foreign exchange inspection work for 2010 is as follows: tracking closely changes in the economic and financial situations both at home and abroad, actively enhancing the approaches for foreign exchange inspection work, carrying out special campaigns in an orderly manner for the inspection and investigation of abnormal cross-border fund flows, intensifying efforts to combat illegal foreign exchange activities such as underground money shops, online foreign exchange speculation, and so forth, and constantly enhancing the predictability, relevance, flexibility, and effectiveness of foreign exchange inspection work.
The meeting also made plans for foreign exchange inspection work in 2010. Emphasis will be placed on special inspections of illegal foreign exchange fund inflows, which will be implemented in the first half of the year in 13 provinces and cities that have more foreign exchange business. The target of the inspections will mainly include trade in goods, trade in services, individual direct investment, foreign direct investment, balance of payments transactions under the external debt, and cross-border fund inflows. The foreign exchange administration departments at all levels will be required to carry out inspections in compliance with the principle of giving prominence to the central task, emphasizing the vital aspects of work, addressing both the symptoms and root causes of the problems, and adhering to overall planning and coordination. Efforts should be made to take full advantage of the information technologies and off-site approaches for the inspections. As far as working procedures are concerned, it is advisable that the departments screen and determine the transactions and entities that are regarded as abnormal at the initial stage, and carry out inspections to ascertain any illegal facts. Inspection procedures should be designed to cover all the major channels, items, and entities through which hot moneyflows, with the aim of ensuring high precision in cracking down on the illegal activities. Meanwhile, the departments should take into consideration the prevention of negative impacts on the normal trade and investment activities of economic entities undergoing inspections. Multiple approaches (administrative measures, legal measures, and so forth) should be adopted to punish the illegal fund inflows by enterprises and individuals that have been determined by the inspection personnel. Failure of the designated foreign exchange banks to fulfill their duties and the acts of wrongdoing by these banks should also be seriously punished through administrative and legal measures as well as by other means. Meanwhile, the foreign exchange administration departments at all levels will be required to strengthen their communications and coordination with the local governments, to give full play to the supervisory and coordination mechanisms, and to further enhance cooperation in foreign exchange supervision.
