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The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange(SAFE) in all provinces, autonomous regions, and municipalities directly under the central government, and SAFE branches of Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo: In accordance with the Regulations of the Peoples Republic of China on the Administration of Foreign-funded Banks, which were promulgated by the State Council on November 11, 2006, a circular on foreign exchange management issues involved in the transformation of the branches of foreign-funded banks is hereby given as follows: 1. Business qualifications Wholly foreign-funded banks after the transformation shall take over the licenses for spot purchases and sales of foreign exchange, forward purchases and sales of foreign exchange, swaps of renminbi against foreign currencies, and other renminbi derivatives against foreign currencies that the original branches of the foreign banks had already obtained, and shall attend to the procedures to alter the registration at the local SAFE branches (including the foreign exchange administrative departments, hereinafter referred to as SAFE branches). The branches of the wholly foreign-funded banks shall take over the licenses for foreign exchange purchases and sales and renminbi derivatives against foreign currencies that the same outlets had obtained before the transformation, and shall attend to the procedures to alter the registration at the local SAFE branches. The wholly foreign-funded banks after the transformation shall take over the membership in the foreign exchange market of the original branches of the foreign-funded banks. The wholly foreign-funded banks, taking over the membership in the inter-bank spot foreign exchange market, shall go through the procedures to alter the registration at the China Foreign Exchange Trade System; the wholly foreign-funded banks taking over the licenses for inter-bank forward foreign exchange transactions and inter-bank renminbi swaps against foreign currencies shall report the changes to the China Foreign Exchange Trade System for preliminary inspection and to the SAFE to alter the registration; the wholly foreign-funded banks taking over the licenses for market-makers of renminbi-foreign currency transactions in the inter-bank foreign exchange market shall report the changes to the SAFE for registration and filing. The branches of foreign-funded banks that had obtained the license for QFII custodian shall, after the transformation, apply to the SAFE to confirm their taking over of the license for QFII custodian. If the wholly foreign-funded banks take over the license, a procedure to alter the registration shall be undertaken at the SAFE. If the branches of foreign-funded banks that keep the foreign exchange wholesale business (hereinafter referred to as bookkeeping branches) take over the license, a registration procedure shall be undertaken at the SAFE. The wholly foreign-funded banks transformed from the branches of foreign-funded banks with a QDII license may take over their QDII quotas directly. 2. Management of the general position over foreign exchange purchases and sales The SAFE and its branches shall implement the ongoing method to manage the general position over foreign exchange purchases and sales of wholly foreign-funded banks. The wholly foreign-funded banks may take over the general position quotas over foreign exchange purchases and sales of the original branches of the foreign-funded banks. If the wholly foreign-funded banks need to adjust the general position quotas over foreign exchange purchases and sales, they shall, based on their amount of capital, apply to the local SAFE branches in accordance with the Circular of the SAFE on Adjusting the Method of Managing Bank Foreign Exchange Purchase and Sale Positions (HuiFa No.69 [2005]) and the Circular of the General Affairs Department of the SAFE on Prescribing the Banks General Position Quotas over Foreign Exchange Purchases and Sales (HuiZongFa No. 118 [2005]), and other relevant provisions. The bookkeeping branches not implementing centralized management of the general position over foreign exchange purchases and sales before the transformation may take over the general position quotas over the foreign exchange purchases and sales of the original branches of the foreign-funded banks. The bookkeeping branches implementing centralized management of the general position over foreign exchange purchases and sales before the transformation shall carry the relevant documentation to the local SAFE branches to apply for a re-prescription of their general position quotas over foreign exchange purchases and sales. 3. Transfers of foreign exchange capital and exchanges between local and foreign currencies Transfers of foreign exchange operating funds between wholly foreign-funded banks and their branches after the transformation can be made at their own discretion. Exchanges between domestic and foreign currencies of foreign-funded bankscapital (or operating funds) are subject to advance approval by the local SAFE branches in accordance with the Circular of the SAFE on the Approval Principles and Procedures for the Banks' Own Foreign Exchange Purchases and Sales under the Capital and Financial Account (HuiFa No.61 [2004]). When the accumulated amount of one-year exchanges between domestic and foreign currencies is more than the equivalent of USD 500 million (including USD 500 million), the local SAFE branches shall give preliminary approval and report to the SAFE for further approval. 4. Accounting items for foreign exchange purchases and sales Wholly foreign-funded banks after the transformation shall, in accordance with the Interim Measures for the Management of the Designated Foreign Exchange Banks' Handling of Foreign Exchange Purchase and Sale Operations (Decree of the People's Bank of China No.4 [2002]), establish independent foreign exchange purchase and sale accounting items, separate foreign exchange purchases and sales for the clients, their own foreign exchange purchases and sales, intra-system foreign exchange purchase and sale positions management transactions, and market foreign exchange purchase and sale positions management transactions, and they shall be accounted for separately under the accounting items for foreign exchange purchases and sales. The wholly foreign-funded banks that cannot meet the aforesaid requirements by the end of the preparatory period for the transformation shall meet the said requirements within two years after obtaining approval to start operations from the China Banking Regulatory Commission. 5. Management of surplus quotas for short-term external debts and external guarantees The wholly foreign-funded banks after the transformation shall take over the quotas of the short-term external debt and external financial guarantees provided to overseas enterprises from the original branches of the foreign banks, and shall report to the SAFE and the local SAFE branches. The registrations of claims, debts, and external guarantees that were originally handled by the branches of the foreign banks shall accordingly now be handled by the wholly foreign-funded banks. The changes in the external debts registration shall be handled collectively at one time by the banks at the SAFE. The registration changes of the external guarantees and domestic foreign exchange loans shall be handled collectively at one time by the guarantors or claimants at the local SAFE branches/ sub-branches. If an overseas bank has both a wholly foreign-funded bank and a bookkeeping branch in China, the said wholly foreign-funded bank and the bookkeeping branch shall share the surplus quotas of the short-term external debt and the external financial guarantees provided to the overseas enterprise. The wholly foreign-funded bank shall be responsible for management. To go through the aforesaid registration changes or filing, a written application, the approval to start a business issued by the China Banking Regulatory Commission, the licenses for relevant operations issued by the foreign exchange bureaus, and other documents required by the foreign exchange bureaus shall be presented. All SAFE branches shall simplify the procedures for approving a change of registration. On receiving this Circular, all SAFE branches shall transmit it promptly to the sub-branches and foreign-funded banks under their jurisdiction. In cases of any problems encountered during implementation, please send the feedback to the SAFE in a timely manner. Telephone numbers: Balance of Payments Department: 010-68402464, 68402311; Fax numbers: 010-68402315, 68402303 Capital Account Management Department: 010-68402247, 68402348; Fax numbers: 010-68402208, 68402349 2011-09-21/en/2011/0921/731.html
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The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (the SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, all policy banks, state-owned commercial banks, joint-stock commercial banks, and the China Foreign Exchange Trade System: For the purpose of promoting foreign exchange market development, the following relevant matters are hereby notified concerning adjustments in the business management of RMB foreign exchange derivative products according to the Interim Measures for Management of Conducting Settlements and Sales of Foreign Exchange by Designated Foreign Exchange Banks and other legal and regulatory stipulations: I. Streamlining access administration for foreign exchange swap and currency swap businesses. Banks and their branches that have obtained (including during the period prior to implementation of this Circular) qualifications for forward settlements and sales of foreign exchange business in line with the Circular of the People’s Bank of China Concerning Expansion of Forward Foreign Exchange Settlements and Sales to Clients and Launching RMB and Foreign Currency Swap Businesses by Designated Foreign Exchange Banks (Yinfa No. 201 [2005]) may automatically obtain business qualifications for foreign exchange swaps and currency swaps, and are not required to apply again for filing. Before the banks and their branches newly launch foreign exchange swap and currency swap business for clients, they shall confirm with the State Administration of Foreign Exchange (SAFE) or their branches and sub-branches the statistics on their settlements and sales of foreign exchange and other administrative matters. II. Increasing the principal exchange modes for currency swap business. Banks can repay the principal and interest for domestic and overseas foreign currency liabilities of clients in conformity with the foreign exchange administrative stipulations, conduct currency swap business without actual exchanges of the principal on the effective date of the contract or currency swap business with or without actual exchanges of the principal on the date of maturity, and can add the principal exchange mode for inter-bank foreign exchange market currency swap business accordingly. For foreign exchange exposure generated in the aforementioned currency swap business, banks can integrate it into their overall position for the settlement and sale of foreign exchange for uniform management. III. Supporting banks to refine options business pricing and risk management With regard to the balance settlement options business conducted for clients or on the inter-bank foreign exchange market by banks in line with the Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Options Transactions of RMB to Foreign Exchange (Huifa No. 8 [2011]), the reference price may be determined by both trading partners in line with the business principles upon consultation, but it shall be the authentic and effective domestic market exchange rate. Banks can select a reasonable and proper approach and the parameters based on their own discretion to measure the Delta position of the options and to integrate them into the overall position of the settlements and sales of foreign exchange for universal management. IV. When banks conduct RMB foreign exchange derivative product business for clients, they shall follow the principles of “knowing your clients,” “knowing your business,” and “due diligence reviews,” and shall sell the right products to the right clients, strengthen risk disclosure and their own risk management, and conduct business in a prudent and compliant manner. V. The China Foreign Exchange Trade System shall, in line with the stipulations in this Circular, adjust the relevant trading rules and systems of the inter-bank foreign exchange market accordingly and shall do a good job in terms of technical support. VI. This Circular will enter into effect as of January 1, 2014. Upon receiving this Circular, the branches and foreign exchange departments of the SAFE shall immediately distribute it to the banks and currency brokerage companies under their respective jurisdictions. The Circular is hereby notified. State Administration of Foreign Exchange December 16, 2013 2014-08-01/en/2014/0801/742.html
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In order to adapt to the development of banks’ transport of foreign currency banknotes and further standardize administration of banks’ transport of foreign currency banknotes into or out of the territory of the PRC, the State Administration of Foreign Exchange (SAFE) and the General Administration of Customs (GAC) jointly revised the Regulations on the Administration of Banks’ Transport of Foreign Currency Banknotes Into or Out of the Territory of the PRC (see the attachment). It is hereby printed and distributed to you and the relevant particulars are notified as follows: I. Banks that already qualify to transport foreign currency banknotes into or out of PRC territory prior to the issuance of this Circular do not need to reapply for such qualification. II. The License for Banks’ Transport of Foreign Currency Banknotes Into or Out of PRC Territory that has been printed and signed by the SAFE prior to the issuance of this Circular shall remain valid until September 30, 2015. Licenses that have not been used by then will be uniformly reclaimed and destroyed by the SAFE. After receiving the Regulations, the branches and administrative departments of the SAFE shall timely transfer them to the central sub-branches, sub-branches, and Chinese-foreign banks within their respective jurisdictions. The Circular of the State Administration of Foreign Exchange and the General Administration of Customs on the Issuance of Regulations on the Administration of Banks’ Transport of Foreign Currency Banknotes Into or Out of the Territory of the PRC (Huihan No. 65 [1998]), the Circular of the State Administration of Foreign Exchange and the General Administration of Customs on Issues Concerning Banks’ Transport of Macau Pataca Banknotes (Huifa No. 204 [1999]), the Circular of the Comprehensive Department of the State Administration of Foreign Exchange and the General Office of the General Administration of Customs on Issues Concerning the Transport of Russian Ruble Banknotes Into or Out of the Territory of the PRC (Huizongfa No. 44 [2004]), and the Circular of the Comprehensive Department of the State Administration of Foreign Exchange and the General Office of the General Administration of Customs on Issues Concerning Banks’ Transport of Foreign Currency Banknotes Into or Out of the Territory of the PRC Handled by the Urumqi Port Customs (Huizongfa No. 198 [2007]) shall simultaneously be repealed. If problems arise in implementation, please contact the SAFE and the GAC in a timely manner. Contact No. of the SAFE: 010-68402313 Contact No. of the GAC: 010-65194959 Attachment: Regulations on the Administration of Banks’ Transport of Foreign Currency Banknotes into or Out of the Territory of the PRC State Administration of Foreign Exchange (SAFE) General Administration of Customs (GAC) April 22, 2014 FILE: Regulations on the Administration of Banks’ Transport of Foreign Currency Banknotes Into or Out of the Territory of the PRC 2014-08-01/en/2014/0801/743.html
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The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and all designated Chinese-funded foreign exchange banks: To meet the demands of foreign central banks, monetary authorities, other official reserves administrations, international financial organizations and sovereign wealth funds (collectively referred to as "foreign central banks and similar institutions") for investing in China's interbank market, relevant issues are notified as follows regarding their opening foreign exchange accounts with Chinese commercial banks: I. To access China's interbank bond market and foreign exchange market, foreign central banks and similar institutions can open a special domestic account for foreign exchange with a Chinese bank by presenting the filing form for investments in China's interbank foreign exchange market or the reply from a relevant department on conducting transactions of funds for relevant businesses. The code of the account is 3400 and the nature of the account is a domestic foreign exchange account for foreign institutions/individuals. Relevant foreign exchange receipts and payments involved in the transactions by foreign central banks and similar institutions in China's interbank bond market and foreign exchange market can be directly processed through their special foreign exchange accounts based on the payment order. II. A Chinese bank is required to report all the data of foreign central banks and similar institutions accurately and in time, in accordance with the Circular of the State Administration of Foreign Exchange on Printing and Distributing the Statistical System for External Financial Assets and Liabilities and Foreign Transactions (Huifa No. 43 [2013]), the Circular of the State Administration of Foreign Exchange on Issuing the Standards for Collecting Data on Foreign Exchange Transactions by Financial Institutions (Version 1.0) (Huifa No. 18 [2014])), the Circular of the State Administration of Foreign Exchange on Printing and Distributing the Detailed Rules for the Implementation of the Declaration of Balance of Payments Statistics through Banks (Huifa No. 27 [2015]). III. For any other matters not covered herein, please refer to the Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Management of Domestic Foreign Exchange Accounts of Overseas Institutions (Huifa No. 29 [2009]) for implementation. IV. All branches and foreign exchange administration departments of the SAFE should immediately forward the Circular to the central sub-branches, sub-branches and foreign banks within their respective jurisdiction; while all the designated Chinese-funded foreign exchange banks shall forward it to their subsidiaries as soon as possible. If any problems are encountered during implementation, please report them to the SAFE in a timely manner. Contact person & number: Zhou Haiwen, 010-68402366. State Administration of Foreign Exchange October 28, 2015 2015-11-17/en/2015/1117/770.html
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The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government, and the branches of the SAFE in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo: To improve the domestic and foreign currency exchange services for domestic individuals, and facilitate and regulate the franchise domestic and foreign currency exchange business for individuals (“franchise business”), this Circular is hereby issued to clarify the issues regarding the provision of the exchange services by institutions that conduct the franchise business(“franchise institutions”) through the Internet. I. For the purpose of this Circular, the term “exchange through the Internet” refers to the process during which a domestic individual places an order with a franchise institution for foreign currency banknotes or electronic traveler’s checks and completes payment for the order through electronic channels such as the Internet and mobile terminals, and withdraws the banknotes or traveler’s checks through an outlet of the franchise institution or other eligible outlet. II. A franchise institution providing the exchanges through the Internet shall meet the following conditions: (I) having a good credit standing, and being free from significant noncompliance with the regulations on the franchise business over the last 2 years; (II) having a necessary administrative system in place for the business; (III) having software & hardware facilities and personnel required by the business; and (IV) other requirements imposed by the SAFE. III. Prior to the provision of the exchanges through the Internet, the head office of a franchise institution should ensure that the business is filed with a branch or an administrative department of the State Administration of Foreign Exchange in a relevant province, autonomous region or municipality directly under the Central Government (“SAFE branch”) in writing or via email. The documents required for the filing include: (I) the business process, roles and responsibilities of the personnel, description of the ordering system, management of the provision for payment, description of customer information validation, and the anti-money laundering system for the exchanges through the Internet; (II) description of the ability to record each transaction of the exchanges through the Internet; (III) copies of payment & settlement agreements with banks and third party payment institutions, cooperation agreements with partners, and exchange agreements with customers; and (IV) other materials required by a SAFE branch. IV. A SAFE branch shall verify the filings submitted by a franchise institution within its jurisdiction in an appropriate manner; if there is no dissent within 20 working days, the franchise institution can provide exchanges through the Internet at its sole discretion. V. A franchise institution shall comply with the following requirements for the exchanges through the Internet: (I) the ordering service may be provided to customers through channels such as proprietary website, a partner’s website or mobile terminal. For the ordering service provided through channels other than the proprietary website, the responsibilities of institutions and customers must be indicated on the ordering interface, and that the exchange service is provided by the franchise institution must be specified; (II) the franchise institution may, based on its circumstances, provide compliant online payment channels (such as debit card online banking and third party payment) to customers, and input the completed payment into the individual foreign exchange monitoring system; (III) the franchise business conducted by the franchise institution must not exceed the relevant requirements on the provision for payment and the exchange quota; (IV) the franchise institution shall verify a customer's identity, ensure the ordering customer is the withdrawer, and keep the photocopies or electronic copies of the customer's personal ID certificate for the withdrawal; (V) the head office of the franchise institution should include the separate statistics of the exchanges through the Internet in the current franchise business statements. VI. The outlets for the withdrawal of foreign currency banknotes (including traveler’s checks) shall be owned by the franchise institution. A franchise institution approved to conduct nationwide franchise business may establish withdrawal outlets across the country at its sole discretion; if approved of conducting franchise business within the jurisdiction of a particular SAFE branch, the franchise institution may, at its sole discretion, establish outlets within the business range, but must not establish any outlet for offline withdrawal outside the jurisdiction. For the addition of other types of outlets (limited to foreign currency exchange points under outlets of banks or other franchise institutions, or under the SAFE itself), a new outlet must be able to ensure the security of banknotes and travelers' checks and be equipped with video monitoring facilities, and the head office of the franchise institution is required to file with the local SAFE branch by presenting the following documents; if there is no dissent within 20 working days, the new outlet may commence doing business at its sole discretion: (I) description and relevant qualification certificates of the withdrawal outlet (such as license of a financial institution, letter of confirmation for foreign currency exchange outlet, and license of domestic and foreign currency exchange franchise businesses for individuals); (II) documents evidencing the existence of equipment and facilities for the withdrawal, including but not limited to monitor video and cash storage cabinet; (III) cooperation agreement between both parties and their relevant management mechanisms; and (IV) other materials required by a SAFE branch. VII. Every SAFE branch should intensify ex-post regulation of the franchise institutions within its jurisdiction, prevent and timely address the default and compliance risks of the franchise institutions, protect the rights and interests of consumers, and watch out for the implementation of administrative measures regarding the authenticity and financial security of customers for the purpose of effective risk control during its daily regulation. Any abnormality must be immediately dealt with and reported to the SAFE. VIII. This Circular shall enter into force as of the date of issuance. In case of any inconsistency between previous provisions and this Circular, this "Circular" shall prevail. The SAFE branches shall, upon receipt of this Circular, promptly forward it to the central sub-branches and sub-branches as well as the franchise institutions within their respective jurisdiction. State Administration of Foreign Exchange September 28, 2015 2015-12-09/en/2015/1209/771.html
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The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and the head offices of designated Chinese-funded foreign exchange banks: To regulate foreign exchange administrationfor overseas traders and brokers engaging in futures trading under specific domestic categories, we hereby release this circular, in accordance with the Regulations of the People’s Republic of China on Foreign Exchange Administration, and the Interim Management Measures for Overseas Traders and Brokers Engaging in Futures Tradingunder Specific Domestic Categories (China Securities Regulatory Commission Order No.116, “Interim Measures”) and relevant provisions. I.For the purpose of this Circular, an overseas trader refers to a legal entity or other business organization duly established overseas (including Hong Kong, Macau and Taiwan, the same below), or a natural person with lawful foreign citizenship, who conducts futures trading and is responsible for the trading results. An overseas brokerrefers to a financial institution duly incorporated overseas and certified or licensed by the local futures regulatory authority to accept funds and trading orders from a trader and execute futures orders in its own name for the trader. A member refers to a domestic member of a futures exchange. The specific domestic categorieshereunder are determined and published by the China Securities Regulatory Commission (CSRC). II. The State Administration of Foreign Exchange (SAFE) and its branches and sub-branches (foreign exchange authorities) are responsible for the supervision, administration and inspection of the opening and use of foreign exchange accounts, receipts and payments as well as remittance and exchange of funds involved in the futures trading under specific domestic categoriesconducted by overseas traders, overseas brokers, domestic futures exchanges and members. III. Overseas traders and overseas brokers may remit funds inward in RMB or foreign exchange for futures trading under specificdomestic categories. IV. When providingservices such as trading and settlement to members, overseas traders or overseas brokers as floor traders for futures trading under specific domestic categories, a futures exchange may open a corresponding special foreign exchange settlement account with a futures margin depositary bank (depositary bank) for the receipts and payments, remittances and exchanges as well as transfer of funds involved in such trading (see Appendix 1 for the nature, name and scope of receipts and payments of the account). V. When providing services such as trading and settlement to overseas traders or overseas brokers for futures trading under specific domestic categories, a futures company or other organization withsettlementqualification may open a corresponding special foreign exchange margin account with a depositary bank for the receipts and payments, remittances and exchanges as well as transfer of funds involved in such trading (see Appendix 1 for the nature, name and scope of receipts and payments of the account). VI. An overseas trader or overseas broker may open a special foreign exchange accountfor futures settlement with a depositary bank for the receipts and payments, remittances and exchanges as well as transfer of funds involved infutures trading under specific domestic categories (see Appendix 1 for the nature, name and scope of receipts and payments of the account). The funds deposited in the special foreign exchange account for futures settlement by an overseas trader or broker shall not be included in the quota for short-term external debt of the depositary bank, while the depositary bank shall duly report the relevant data to aforeign exchange authority, and the interest on such funds shall be calculated at the demand deposit interest rate.Such funds shall be managed under special accounts, and shall not be used for any other purposes. VII. A depositary bank shall process the settlement and purchases of foreign exchange based on the actual results of futures trading under specific domestic categories by an overseas trader, an overseas broker or a member. The foreign exchange settlement and purchase only involves settlement of profit or loss from futures trading, payment of service fees, delivery of payment for goods, as well as call for payment of gaps in settlement currency, which are associated with futures trading under specific domestic categories. After foreign exchange settlement or purchases, the relevant funds shall be directly paid to the payee or transferred to the corresponding account in accordance with the institutional requirements on futures trading and settlement. VIII. Futures exchanges, members and domestic banks shall report the balance of payments statistics in accordance with the Measures for Reporting of Balance of PaymentsStatistics and relevant provisions, and the data on foreign-related receipts and payments via banks as well as the data on external financial assets and liabilities and trading statistics. A depositary bank shall report the data on the account, foreign exchange settlement and sales, domestic transfer of funds as well as external debtunder the accountin accordance with relevant requirements of the SAFE. IX. In case of physical delivery for futures trading under specific domestic categories, a futures exchange or a member that directly provides settlement services for payment delivery to an overseas trader or an overseas broker shall, in accordance with the provisions relevant to foreign exchange administration for trade in goods and after registration in the “List of Enterprises with Foreign Exchange Receipts and Payments under Trade”, go throughthe procedures for foreign exchange receipts and payments under trade, report through banks the data on the foreign exchange receipts and payments under trade, and keep the delivery and settlement sheets and relevant transaction documents for 5 years for future reference. X. A futures exchange shall report to aforeign exchange authority on a monthly basis the basic information on futures trading under specific domestic categories by overseas traders and overseas brokers, as well as the data on the inflows and outflows of funds, foreign exchange settlement and purchases and physical delivery (see the format in Appendix 2). XI. In case of violations of this Circular and other provisions relevant to foreign exchange administration by an overseas trader, an overseas broker, a futures exchange, a member and a depositary bank infutures trading under specific domestic categories, foreign exchange authorities shall impose penalties on themin accordance with the Regulations of the People’s Republic of China on Foreign Exchange Administration. XII. This Circular shall be interpreted by the State Administration of Foreign Exchange. XIII. This Circular shall take effect as of August 1, 2015. Upon receipt of this Circular, the SAFE branches shall forward it to central sub-branches, sub-branches, urban commercial banks, and foreign banks under their jurisdiction as early as possible, while the designated Chinese-funded foreign exchange banks shall, upon receipt of this Circular, forward it to their respective branches and sub-branches under their jurisdiction as early as possible. Please contact the Capital Account Administration Department of the SAFE if any difficulties are encountered in implementing this Circular. Appendix: 1. Scope of Receipts and Payments under Foreign Exchange Accounts for Futures Trading under Specific Domestic Categories by Overseas Traders and Brokers 2. Monthly Statements on Futures Trading under Specific Domestic Categories by Overseas Traders and Overseas Brokers State Administration of Foreign Exchange July 29, 2015 FILE: Scope of Receipts and Paymentsunder Foreign Exchange Accounts for Futures Trading under Specific Domestic Categories by Overseas Traders and Brokers FILE: Monthly Statements on Futures Trading under Specific Domestic Categories by Overseas Traders and Overseas Brokers 2015-10-29/en/2015/1029/768.html
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The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches of the SAFE in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo: To further facilitate trade and investment facilitation and serve the real economy, the State Administration of Foreign Exchange (SAFE) has revised the Regulations on the Centralized Operation and Management of the Foreign Exchange Funds of MNCs (Interim). Relevant issues are notified as follows: I. Pilot for Self-Disciplinary Management of External Debt Proportion. Member enterprises of an MNC will be subject to self-disciplinary management of external debt proportion when borrowing external debt and the host enterprise may centralize all or part of external debt quotas of its member enterprises; foreign exchange settled under external debt can be used to pay RMB loans or make equity investments in accordance with the laws.Upon registration of external debt, an enterprise can select the currency for repayment at its sole discretion according to its commercial principles. II. The functions of overseas master accounts will be optimized. Domestic banks may utilize in China the deposits that are absorbed through the overseas master accounts for foreign exchange funds and which do not exceed 50% (inclusive) of the average daily deposit balance over the last six months; when included in banks' overall positions of foreign exchange settlement and sales for management, funds in an overseas master account can be used for foreign exchange settlement and sales at a certain proportion. III. Account opening requirements will be simplified. MNCs will be allowed to operate the foreign exchange receipts of class-A member enterprises that do not need to be in the account for export income to be verified. A qualified host enterprise of an MNC will be allowed to open domestic and overseas master accounts for foreign exchange funds with non-local banks. IV. Procedures for foreign exchange receipts and payments will be simplified. Banks will be allowed to verify the authenticity of relevant electronic documents and handle foreign exchange receipts and payments under the current account in the principle of "knowing your customer", "understanding your business" and "due diligence", while purchases and payments of foreign exchange for external payment under the current and capital accounts will be allowed to be processed with different banks. V. Procedures for the declaration of foreign-related receipts and payments will be improved. Procedures for the declaration of the centralized receipts and payments of foreign exchange and the receipts and payments for net settlement will be simplified, and the way of declaration of the foreign-related receipts and payments that is fit for the automatic sweeping model of the cash pool will be established to allow banks to sign a package of sweeping agreements regarding foreign-related receipts and payments with enterprises. VI. Ongoing and ex-post management will be strengthened. First, banks and enterprises are required to report accurate data such as pilot business data in time in accordance with regulations. Second, foreign exchange authorities should intensify monitoring of cross-border capital flows involved in the centralized operation and management of foreign exchange funds by MNCs, issue risk reminder notices in case of abnormalities or suspicious activities and conduct onsite verification and inspection in accordance with the laws. Third, the SAFE branches and foreign exchange administrative departments (the SAFE branches) can require a host enterprise to conduct a one-time update of the filing materials and redevelop operating rules for filing, or to file new businesses such as self-disciplinary management of external debt proportion alone. The SAFE branches are required to file with the SAFE pursuant to the above regulation and those that conduct new businesses should file the overall business operating rules with the SAFE. Fourth, when reviewing an enterprise' operating rules for filing, a SAFE branch must review the quotas of external debt and external loans, making sure they are accurate. The SAFE branches should ensure that systems run well to enhance cross-departmental coordination and regulation of banks and enterprises. The revised Regulations on the Centralized Operation and Management of the Foreign Exchange Funds of MNCs are now issued to you for implementation. Please be kindly noted that any special case should be reported to the SAFE. Contact Number: 010-68402113; 68402448; 68402381; 68402383 Appendix: Regulations on the Centralized Operation and Management of the Foreign Exchange Funds of MNCs State Administration of Foreign Exchange August 5, 2015 FILE: Appendix 2015-11-11/en/2015/1111/769.html
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FILE: Catalogue of Major Existing Laws аnd Regulations in Effect on Foreign Exchange Administration (as of June 30, 2015) 2015-09-01/en/2015/0901/767.html
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The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; all designated Chinese-funded foreign exchange banks, and China UnionPay Co., Ltd.: To standardize and facilitate operation by banks and individuals in respect of foreign exchange business and improve classified regulation of individual players for foreign exchange trading, the State Administration of Foreign Exchange (SAFE) decides to further improve the administration of individual foreign exchange as the individual foreign exchange business monitoring system is launched. The relevant issues are hereby notified as follows: I. The individual foreign exchange business monitoring system will be launched nationwide on January 1, 2016, and at the same time, the management information system for foreign exchange settlement and sales for individuals will be no longer in use. Banks that have the qualifications for handling foreign exchange settlement and sales (bank) shall handle individual foreign exchange business such as settlement and purchases of foreign exchange through this monitoring system and report relevant business data accurately, completely and in time. II. In handling foreign exchange business, individuals shall observe relevant regulations in respect of the administration of individual foreign exchange and are not allowed to evade quota and authenticity management in a split way. If doing so, these individuals will be put on a watch list by the SAFE and its branches and sub-branches (foreign exchange authorities). (I) Foreign exchange authorities will issue the Risk Reminder Notification for Individual Foreign Exchange Business (see Appendix 1) as a risk reminder to individuals who lend their quota to another individual for the evasion of quota and authenticity management. If this happens again, these individuals will be put on a watch list by foreign exchange authorities. (II) Foreign exchange authorities will put individuals who borrow another individual's quota for the evasion of quota and authenticity management on a watch list and notify them through the Notification on Watch List for Individual Foreign Exchange Business (see Appendix 2) issued by banks. (III) The watch period of an individual on a watch list is the year the individual is put on the watch list and the two consecutive years that follow. During this period, the individual has to present his/her valid ID card and evidencing materials indicating the trading amount to go through procedures for settlement and sales of foreign exchange for individuals. Banks shall review relevant evidencing materials in strict accordance with the authenticity review principles. III. Banks shall cooperate with foreign exchange authorities in inspecting individuals and institutions involved in the evasion of quota and authenticity management, and report, within 20 days since the day the individual foreign exchange business monitoring system pushes relevant information, the purposes of individual settlement of foreign exchange, the sources of funds for purchases of foreign exchange and other information required by foreign exchange authorities. IV. Foreign exchange authorities and banks shall access the individual foreign exchange business monitoring system through the SAFE's application service platform. The details are as follows: Type of user Way of access Interface Foreign exchange authorities Intranet http://100.1.48.51:9101/asone/ Banks External net http://banksvc.safe (Main login interface) http://asone.safe:9101/asone/ (Backup login interface) Foreign exchange authorities and banks shall assign technicians and business operators for the daily maintenance of the individual foreign exchange business monitoring system to ensure smooth operation of the system. V. In case of a nationwide systemic error in the individual foreign exchange business monitoring system, foreign exchange authorities and banks shall take emergency measures in accordance with the Emergency Plan for the Individual Foreign Exchange Business Monitoring System (see Appendix 3) to ensure the smooth and timely handling of individual foreign exchange business. VI. The foreign exchange settlement and sales under the individual remittance business of China UnionPay Co., Ltd., and individual domestic and foreign currency exchange business handled by franchised institutions for domestic and foreign currency exchange for individuals (franchised institutions) shall be handled in accordance with this Circular. Where there are provisions as otherwise stated in respect of foreign exchange administration, those provisions shall prevail. VII. This Circular shall take effect as of January 1, 2016. At the same time, the Circular of the General Affairs Department of the State Administration of Foreign Exchange on Regulating Operations of Foreign Exchange Settlement and Sales for Individuals by Banks (Huizongfa No. 90 [2007]), the Circular of the General Affairs Department of the State Administration of Foreign Exchange on Promulgating the Emergency Plan for the Management Information System for Foreign Exchange Settlement and Sales for Individuals (Huizongfa No. 49 [2008]), the Circular of the State Administration of Foreign Exchange on Printing and Distributing the Interim Measures for Administration of Foreign Exchange Settlement and Sales for Individuals through E-banking (Huifa No. 10 [2011]), the Circular of the State Administration of Foreign Exchange on Trial Implementation of the "Watch List" Management of Individual Splitting Foreign Exchange Settlement and Sales by Banks Engaging in E-Channeled-based Foreign Exchange Settlement and Sales for Individuals (Huifa No. 41 [2011]), the Circular of the General Affairs Department of the State Administration of Foreign Exchange on Regulating the Review of Access to Foreign Exchange Settlement and Sales for Individuals through E-banking (Huizongfa No. 77 [2013]) will be nullified. In case of any discrepancies with prior regulations, this Circular shall prevail. Upon receipt of this Circular, all branches and foreign exchange administrative departments of the SAFE should immediately forward it to the central sub-branches, sub-branches, urban and rural commercial banks, foreign banks and franchised institutions. The designated Chinese-funded foreign exchange banks shall, upon receipt of this Circular, forward it immediately to their branches. Please report any problems encountered in implementation to the SAFE in a timely manner. Business Enquiry Hotline: 010-68402673 (Bank business) 010-68402295 (Franchised institution business) Technology Enquiry Hotline: 010-68402674 Appendix: 1. Risk Reminder Notification for Individual Foreign Exchange Business 2. Notification on Watch List for Individual Foreign Exchange Business 3. Emergency Plan for the Individual Foreign Exchange Business Monitoring System State Administration of Foreign Exchange December 25, 2015 FILE: Risk Reminder Notification for Individual Foreign Exchange Business FILE: Notification on Watch List for Individual Foreign Exchange Business FILE: Emergency Plan for the Individual Foreign Exchange Business Monitoring System 2016-01-13/en/2016/0113/775.html
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To accelerate the development and boost the opening up of the foreign exchange market, the issues on extending the foreign exchange trading time and introducing qualified foreign players are clarified as follows: First, extending the foreign exchange trading time. Beginning from January 4, 2016, the interbank foreign exchange trading system will be in operation until 23:30 every day, Beijing time, and accordingly, the time that market management systems apply, with regard to the central parity rate and the range of fluctuation of the RMB exchange rate, and the market maker quotation will be extended. China Foreign Exchange Trade System (CFETS) has announced that the strike price of spot inquiry about the exchange rate of the RMB against the USD at 16:30 Beijing time will be regarded as the closing price of the day. Second, introducing qualified foreign players. After applying to the CFETS for becoming a member of the interbank foreign exchange market, qualified overseas players approved to provide RMB purchases and sales services can access the interbank foreign exchange market, and participate through the trading system of the CFETS in the trading of all listed trading categories allowed in the RMB purchases and sales business, including spot, forward, swap and options transactions. Foreign players shall participate in the trading under RMB purchases and sales in the interbank foreign exchange market, in accordance with laws and regulations. Third, market intermediaries and service providers including the CFETS and Shanghai Clearing House shall do their part to ensure the level of services. People's Bank of China，State Administration of Foreign Exchange December 21, 2015 2015-12-29/en/2015/1229/773.html