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March 30, 2007 - The SAFE recently held the 2007 National Work Conference on Foreign Exchange Inspection and the Work Conference on the Inspection of Foreign Exchange Capital Inflows and Sales in Dongguan , Guangdong . The conference summarized the inspection of foreign exchange in 2006 and made arrangements for 2007. Deputy Administrator Mr. Deng Xianhong attended the meeting and delivered a speech. The SAFE focused on inspection to combat abnormal capital and short-term venture capital against the background of the continuous balance of payments surplus and the rapid increase in foreign exchange reserves. By carrying out special inspections and surveys of the external debts and the foreign exchange assets and liabilities of banks, deferred payments, cross-border related transactions, services trade, external debts of foreign-funded enterprises, temporary payable received accounts of Chinese- and foreign-funded enterprises, collections and sales in some regions, pending surrender accounts, and nominal rate and foreign capital inflows to the real estate market, the SAFE cracked down on over 70 underground money shops and dens of illegal foreign exchange transactions and solved some large cases, for instance online speculation in foreign currency, illegal transaction of verification documents, and underground KRW circulation and illegal inflows of large amounts of abnormal funds through exchanges outside of China. During the entire year of 2006, 1,914 cases were investigated and punished through the national foreign exchange inspection system and 1,915 cases were solved, with the amounts of the fines totaling RMB 139 million and the confiscations totaling RMB 138 million in the one year. The work in 2006 played a positive role in grasping the overall trend in foreign exchange capital inflows, curtailing the inflow of illegal capital, and promoting an equilibrium in the balance of payments. The conference also made overall arrangements for foreign exchange inspection work in 2007. In light of the financial situation of the macro-economy, the inspection of foreign exchange will center on the goal of achieving a basic equilibrium in the balance of payments and stepping up the monitoring and inspection of the inflow of short-term abnormal capital. Inspection of the main factors that influence an equilibrium in the balance of payments will be intensified, while taking into consideration the new problems emerging in the equilibrium in the balance of payments. The SAFE will keep up with an adjustment of the policies for foreign exchange administration, carry out special inspections and check the effects of the new policies, severely crack down on illegal foreign exchange behavior and enhance the inspection and punishment of severe and important cases, reinforce the study of means for off-site inspections and establish an off-site inspection system, further rectify and standardize the foreign exchange market order, deepen the construction of a foreign exchange credit system, and strengthen the construction of internal control. Management and inspection teams will be strengthened and the risks of law enforcement will be prevented. The conference made detailed arrangements for the coming all-round inspection of foreign exchange capital inflows and the collection and sales of banks in some regions. Inspections of foreign exchange capital inflows and sales will be divided into two phases off-site and on-site. The SAFE will carry out off-site inspections covering foreign exchange collection and sales and the use of RMB capital from foreign exchange by banks, enterprises, and institutions, foreign institutions in China , and individuals in ten regions where the exchange business is brisk. Four designated foreign exchange banks in Shanghai, Tianjin, Beijing, and Shenzhen will undergo special inspections of their foreign exchange collection and sales, through which the SAFE will grasp whether the business was conducted according to the regulations and whether the business had an impact on an increase in a favorable balance between the settlement and sale, and will deal with their illegal practices. 2007-03-30/en/2007/0330/834.html
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August 15, 2007 - In order to improve foreign exchange administration in closed areas and bonded sites under customs supervision (hereinafter referred to as bonded areas under customs supervision) and facilitate trade and investment made by enterprises within such areas, the SAFE recently announced the "Measures for Foreign Exchange Administration in Bonded Areas under Customs Supervision" (hereinafter referred to as the "Measures"). In recent years, bonded regions, export-processing zones, bonded logistics parks, bonded logistics centers, bonded ports, integrated bonded areas, cross-border industrial parks, and other different types of bonded areas under customs supervision have been developing rapidly, playing a positive role in promoting regional economic development and the development of high-tech and high value-added products trade. To meet the demands to further expand and transform the functions of the bonded areas under customs supervision, the SAFE formulated and promulgated the "Measures" to integrate the existing foreign exchange management policies applicable to different bonded supervision areas and to adjust the policies that lag behind the development of the bonded supervision areas. The main contents of the "Measures" are as follows: First is to continue to maintain the advantages of foreign exchange management policies in the regions. Local enterprises engaged in trading goods abroad do not have to go through the procedures for verification. Local enterprises and domestic enterprises outside the regions can use RMB or foreign currencies for valuation and settlement in transactions. Second is to integrate some of the internal and external policies, further facilitating the opening of current foreign currency accounts, retaining the current foreign exchange income, the purchases and sales of foreign exchange, investment under the capital accounts, and external guarantees, as well as the reporting system for the balance of payments statistics and implementing the same policy with that outside the bonded areas under customs supervision. Third is to fit in with the transaction manners of local enterprises and the new features of the logistics development and to simplify the material verification requirements, so the payment of foreign exchange whose logistics and capital flow do not correspond to each other can be directly handled in the banks. The announcement and implementation of the "Measures," are suitable to the current economic situation for structural adjustment, satisfy the operational and innovation needs of enterprises, and will further facilitate the operation of enterprises in these areas, thus promoting the development of the bonded areas under customs supervision. Meanwhile, they will contribute to effective supervision. The "Measures" shall become effective on October 1. 2007-08-15/en/2007/0815/845.html
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August 6, 2007 - Recently, the SAFE Shenzhen Branch, together with the Shenzhen Public Security Bureau, successfully cracked down on large-scale underground money shops with an organized structure and a clear work division. Six criminal suspects including the money shop boss with the surname of Du were arrested on the spot and 55 accounts (about RMB 4.2 million) involved in the case were frozen. According to a preliminary investigation, Du illegally operated the money shop in Shenzhen for seven or eight years. From 2006 to May 2007, the trading amount of the Shenzhen office alone reached over RMB 4.3 billion. In the three corporate accounts controlled by Du, the accumulated trading amount from January 2006 to June 25, 2007 reached RMB 1.78 billion, which was comprised of revenue of RMB 970 million and expenditures of RMB 810 million. In terms of industries, the trading funds related to real estate reached RMB 130 million, and those related to the capital market reached RMB 105 million. Some industries like trade and marketing involved largest amount of RMB 453 million. In terms of the regional distribution, clients were in all 31 provinces and cities of the country and the main VIP clients were concentrated in the coastal areas, such as Guangdong (excluding Shenzhen), Jiangsu , and Zhejiang . In terms of trading entities, enterprises, even many well-known domestic large-scale state-owned enterprises, occupied the main position. In terms of the use of the funds, the funds were mainly related to the makeup of the processing fees, the receipt of export proceeds, fuel payments, home purchase payments, security deposits for the conveyance of land, portfolio investments, advance payments, and domestic guarantees, etc. At present, the SAFE is closely cooperating with the public security agencies to sort out the fund transactions under the accounts controlled by Du's money shop and to collect further evidence of the illegal transactions of the money shop. 2007-08-06/en/2007/0806/843.html
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August 13, 2007 - The SAFE recently released the "Circular of the State Administration of Foreign Exchange on Reserving Foreign Exchange Income under the Current Account by Domestic Institutions at Their Own Discretion" (hereinafter referred to as the "Circular") and lifted the quota limit on the foreign exchange account under the current account for domestic institutions. Therefore, domestic institutions can reserve foreign exchange income under the current account at their own discretion according to their operational needs. Previously, domestic institutions could retain their foreign exchange income under the current account within a total of 80% of the foreign exchange receipts under the current account and 50% of the foreign exchange payments under the current account of the previous year. This policy adjustment is an important reform of the foreign exchange management system. The implementation of the new policy will further strengthen autonomy and the convenience for domestic institutions to hold and use foreign exchange and is favorable for domestic institutions to reinforce the management of funds as well as conducive to promoting an equilibrium in the balance of payments. The SAFE will continue to strengthen oversight and management of the authenticity and compliance of the foreign exchange receipts and payments under the current account, strictly monitor cross-border capital flows, and intensify efforts to investigate and deal with false and illegal foreign exchange transactions to maintain stable and healthy economic and financial development in line with implementation of national macro-control and regulation. The "Circular" shall be effective upon promulgation. 2007-08-13/en/2007/0813/844.html
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Nanyang Commercial Bank's purchasing quota of foreign exchange for overseas investment services on behalf of its clients approved 2007-05-16/en/2007/0516/838.html
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In accordance with the Law of the People’s Republic of China on Anti-Money Laundering (Decree No. 56 of the President of the People’s Republic of China) and Regulations of the People’s Republic of China on Foreign Exchange Administration (Decree No. 532 of the State Council of the People’s Republic of China), the State Administration of Foreign Exchange (SAFE) has strengthened foreign exchange market regulation, and severely cracked down upon false and fraudulent foreign exchange transactions, in a bid to maintain the healthy and benign order in the foreign exchange market. In accordance with the Regulations of the People's Republic of China on the Disclosure of Government Information (Decree No. 711 of the State Council of the People's Republic of China) and other relevant regulations, a selection of typical cases involving violations of foreign exchange regulations are notified as follows: Case 1: Case of foreign exchange payment for false entrepot trade by Bank of Nanjing Shanghai Pudong Subbranch From February to March 2016, Bank of Nanjing Shanghai Pudong Subbranch handled foreign exchange payment for entrepot trade with false bills of lading of enterprises. The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, it was fined RMB 800,000. Case 2: Case of foreign exchange payment for false entrepot trade by Agricultural Bank of China Ningbo Branch From September 2016 to September 2017, the Agricultural Bank Ningbo Branch handled the foreign exchange payment for entrepot trade with the invalid bills of lading or repeatedly used documents presented by the enterprises, and failed to handle foreign exchange receipts and payments under entrepot trade at the same bank outlet in accordance with regulations. The bank violated Article 12 of the Regulations on Foreign Exchange Administration and Article 5 of the Circular of the State Administration of Foreign Exchange on Further Promoting Trade and Investment Facilitation and Improving Authenticity Review. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the bank was ordered to rectify and fined RMB 644,800. Case 3: Case of foreign exchange payment for false entrepot trade by ICBC Nanchang Beijingxilu Subbranch From September 2016 to October 2017, ICBC Nanchang Beijingxilu Subbranch handled foreign exchange payment for entrepot trade with false bills of lading of enterprises. The bank violated Article 12 of the Regulations on Foreign Exchange Administration. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the bank was ordered to rectify and fined RMB 1,115,400. Case 4: Onshore guarantees by Industrial Bank Taizhou Branch for offshore loans against regulations From April 2015 to May 2016, Industrial Bank Taizhou Branch failed to fulfill verification responsibilities when handling contracting of onshore guarantees for offshore loans and performing foreign exchange payment, and failed to conduct due diligence and inspection as required, with regard to the purposes of the loans, expected sources of repayment, possibility of performing the contracts for onshore guarantees and relevant transaction background. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the bank was ordered to rectify and fined RMB 953,100. Case 5: Split-up sales and payments of individual foreign exchange by China Merchants Bank Hangzhou Branch From January to November 2016, China Merchants Bank Hangzhou Branch used the annual quotas of 303 individuals in China to buy foreign exchange and split up sales and payments of foreign exchange for its clients in violation of regulations. The bank violated Article 7 of the Measures for the Administration of Individual Foreign Exchange. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the bank was ordered to rectify and fined RMB 1 million. Case 6: Evasion of foreign exchange by Shandong Qingyuan Group Co., Ltd. In May 2016, Shandong Qingyuan Group Co., Ltd. made external foreign exchange payment of USD 9.555 million by using false contracts, invoices and bills of lading, and fabricating trade background. The company violated Article 12 of the Regulations on Foreign Exchange Administration and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 3,097,400. Relevant penalty information has been included in the credit information system of the People’s Bank of China. Case 7: Evasion of Foreign Exchange by Guangzhou Yangfan Trading Co., Ltd. From May 2016 to June 2017, Guangzhou Yangfan Trading Co., Ltd. made external foreign exchange payment of USD 92.858 million by using false bills of lading and fabricating trade background. The company violated Article 12 of the Regulations on Foreign Exchange Administration and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 37.34 million. Relevant penalty information has been included in the credit information system of the People’s Bank of China. Case 8: Evasion of foreign exchange by Country Style Cooking (Chongqing) Investment Co., Ltd. From November 2016 to March 2017, the actual controller of Country Style Cooking (Chongqing) Investment Co., Ltd. did not handle the registration of foreign exchange and alteration registration for overseas investment in accordance with the regulations, and remitted profits to the overseas parent company in violation of the regulations, with a total amount of USD 8,859,900. The company violated Article 16 of the Regulations on Foreign Exchange Administration and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 3.02 million. Relevant penalty information has been included in the credit information system of the People’s Bank of China. Case 9: Evasion of foreign exchange by Ningbo Huili International Trade Co., Ltd. From February 2017 to March 2018, Ningbo Huili International Trade Co., Ltd. made external foreign exchange payment of USD 15,656,200 by using false bills of lading and fabricating trade background. The company violated Article 12 of the Regulations on Foreign Exchange Administration and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 5,098,400. Relevant penalty information has been included in the credit information system of the People’s Bank of China. Case 10: Evasion of foreign exchange by Beijing Xinhuayang Trade Co., Ltd. In May 2017, Beijing Xinhuayang Trade Co., Ltd. made external foreign exchange payment of USD 6.19 million by using invalid bills of lading and fabricating trade background. The company violated Article 12 of the Regulations on Foreign Exchange Administration and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 2,136,500. Relevant penalty information has been included in the credit information system of the People’s Bank of China. Case 11: Evasion of foreign exchange by Tellhow Sci-Tech Co., Ltd. In May 2017, Tellhow Sci-Tech Co., Ltd. made external foreign exchange payment of EUR 2 million by using false bills of lading and fabricating trade background. The company violated Article 12 of the Regulations on Foreign Exchange Administration and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 800,000. Relevant penalty information has been included in the credit information system of the People’s Bank of China. Case 12: Illegal trading of foreign exchange by Mr. Liu from Sichuan From June 2014 to August 2015, Mr. Liu remitted inward HK$ 7,671,700 in 12 deals through underground banks. He violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was considered breaking the laws on the purchases and sales of foreign exchange. In accordance with Article 45 of the Regulations on Foreign Exchange Administration, he was fined RMB 491,400. The SAFE exercised the “Watch list” management on Mr. Liu, and included him into the credit information system of the People’s Bank of China. Case 13: Illegal trading of foreign exchange by Mr. Cao from Hubei From July 2015 to March 2016, Mr. Cao conducted 34 deals of illegal trading of Hong Kong dollars via underground banks, with a total amount of RMB 8,993,200. He violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was considered getting involved in the illegal trading of foreign exchange. In accordance with Article 45 of the Regulations on Foreign Exchange Administration, he was fined RMB 719,500. The SAFE exercised the “Watch list” management on Mr. Cao, and included him into the credit information system of the People’s Bank of China. Case 14: Illegal trading of foreign exchange by Mr. Peng from Chongqing From September to December 2015, Mr. Peng purchased US dollars via underground banks in 16 deals to remit overseas, with a total amount of RMB 13,835,800. He violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was considered getting involved in the illegal trading of foreign exchange. In accordance with Article 45 of the Regulations on Foreign Exchange Administration, he was fined RMB 968,500. The SAFE exercised the “Watch list” management on Mr. Peng, and included him into the credit information system of the People’s Bank of China. Case 15: Illegal trading of foreign exchange by Mr. Zhang from Anhui From January 2017 to April 2018, Mr. Zhang conducted illegal trading of Hong Kong dollars several times via underground banks, with a total amount of RMB 3,762,400. He violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was considered getting involved in the illegal trading of foreign exchange. In accordance with Article 45 of the Regulations on Foreign Exchange Administration, he was fined RMB 452,000. The SAFE exercised the “Watch list” management on Mr. Zhang, and included him into the credit information system of the People’s Bank of China. Case 16: Purchases and sales of foreign exchange by Mr. Hong from Zhejiang, without permission From February 2011 to October 2015, Mr. Hong paid RMB 312 million to another people's account, and purchased foreign exchange privately for the overseas purchase of real estate. He violated Article 30 of the Measures for the Administration of Individual Foreign Exchange by getting involved in the purchases and sales of foreign exchange without permission. In accordance with Article 45 of the Regulations on Foreign Exchange Administration, he was fined RMB 24.97 million. The SAFE exercised the “Watch list” management on Mr. Hong, and included him into the credit information system of the People’s Bank of China. Case 17: Evasion of foreign exchange by Mr. Sun from Guangdong through split-up From January 2016 to July 2017, Mr. Sun split up his personal funds, used the annual quotas of 34 individuals in China to buy foreign exchange and transferred the foreign exchange into overseas account. The funds thus transferred illegally amounted to USD 2,446,200 in total, which is used for overseas investment. He violated Article 7 of the Measures for the Administration of Individual Foreign Exchange and was considered getting involved in the evasion of foreign exchange. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, he was fined RMB 830,000. The SAFE exercised the “Watch list” management on Mr. Sun, and included him into the credit information system of the People’s Bank of China. 2019-05-20/en/2019/0520/1515.html
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In accordance with the Law of the People’s Republic of China on Anti-Money Laundering (Decree No. 56 of the President of the People’s Republic of China) and Regulations of the People’s Republic of China on Foreign Exchange Administration (Decree No. 532 of the State Council of the People’s Republic of China), the State Administration of Foreign Exchange (SAFE) has strengthened foreign exchange market regulation, and severely cracked down upon false and fraudulent foreign exchange transactions and other irregular behaviors, in a bid to contain money laundering and relevant illegal and criminal activities, and maintain the healthy and benign order in the foreign exchange market. In accordance with the Regulations of the People's Republic of China on the Disclosure of Government Information (Decree No. 492 of the State Council of the People's Republic of China) and other relevant regulations, a selection of typical cases involving violations of foreign exchange regulations are notified as follows: Case 1: The false entrepot trade case of Xiamen Branch, PingAn Bank From September 2015 to September 2016, Xiamen Branch of PingAn Bank handled foreign exchange payment for entrepot trade with false contracts and bills of lading of enterprises. Such behavior violates Article 12 of the Regulations on Foreign Exchange Administration. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, a penalty of RMB 2.80 million was imposed on the bank. Case 2: The false entrepot trade case of Haikou Branch, China Everbright Bank From December 2015 to May 2016, Haikou Branch of China Everbright Bank handled foreign exchange payment for entrepot trade with false contracts and bills of lading of enterprises. Such behavior violates Article 12 of the Regulations on Foreign Exchange Administration. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, a penalty of RMB 800,000 was imposed. Case 3: Handling of prepayment by Guangzhou Branch of Bank of East Asia in violation of regulations From February to May 2016, Guangzhou Branch of Bank of East Asia failed to perform verification responsibilities, and handled foreign exchange payment for prepayment in violation of regulations when there were multiple obvious inconsistencies between the import contracts and the invoices of enterprises. Such behavior violates Article 12 of the Regulations on Foreign Exchange Administration. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, a penalty of RMB 500,000 was imposed. Case 4: Handling of onshore guarantees for offshore loans by Dalian Branch of Minsheng Bank in violation of regulations From July 2015 to March 2016, Dalian Branch of Minsheng Bank failed to fulfill verification responsibilities when handling contracting of onshore guarantees for offshore loans and performing foreign exchange payment, and failed to conduct due diligence and inspection on sources of expected repayment funds and relevant trading background. Such behavior of the Bank violated Articles 12 and 28 of Provisions on Foreign Exchange Administration for Cross-border Guarantee. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, a penalty of RMB 3.073 million was imposed. Case 5: Evasion of foreign exchange by Jishan County Kangshengda Preserved Foods Co., Ltd. From October 2014 to November 2015, Jishan County Kangshengda Preserved Foods Co., Ltd. failed to collect foreign exchange for exported goods, involving an amount of USD 4.6647 million. Such behavior violated Article 12 of the Regulations on Foreign Exchange Administration and Article 14 of the Guidance on Foreign Exchange Administration under Trade in Goods, and was considered evasion of foreign exchange. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, a penalty of RMB 2.0859 million was imposed. Relevant penalty information has been included in the credit information system of the People’s Bank of China. Case 6: Evasion of foreign exchange by Ningbo Minghui Mining Co., Ltd. In February and March 2017, Ningbo Minghui Mining Co., Ltd. fabricated trade background with invalid documents and made external foreign exchange payment of USD 2.7371 million. Such behavior violated Articles 12 and 14 of the Regulations on Foreign Exchange Administration, and was considered evasion of foreign exchange. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, a penalty of RMB 924,000 was imposed. Relevant penalty information has been included in the credit information system of the People’s Bank of China. Case 7: Evasion of foreign exchange by Ningbo Shiding Import & Export Co., Ltd. In September 2017, Ningbo Shiding Import & Export Co., Ltd. forged marine bill of lading, fabricated trade background and made external foreign exchange payment of USD 3.881 million. Such behavior violated Articles 12 and 14 of the Regulations on Foreign Exchange Administration, and was considered evasion of foreign exchange. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, a penalty of RMB 1.273 million was imposed. Relevant penalty information has been included in the credit information system of the People’s Bank of China. Case 8: Evasion of foreign exchange by Jiangsu Wuyang Group Co., Ltd. In September 2017, Jiangsu Wuyang Group Co., Ltd. forged import contracts, fabricated trade background and made external foreign exchange payment of USD 2.0007 million. Such behavior violated Article 12 of the Regulations on Foreign Exchange Administration and Article 3 of the Guidance on Foreign Exchange Administration under Trade in Goods, and was considered evasion of foreign exchange. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, a penalty of RMB 654,000 was imposed. Relevant penalty information has been included in the credit information system of the People’s Bank of China. Case 9: Illegal trading of foreign exchange by a Mr. Zhou from Hong Kong From August 2014 to August 2016, Mr. Zhou conducted illegal trading of Hong Kong dollars several times via underground banks, involving an amount equivalent to RMB 14.0121 million. Such behavior violates Article 32 of the Regulations for the Administration of Settlement and Sales of and Payment in Foreign Exchange and was considered illegal trading of foreign exchange. In accordance with Article 45 of the Regulations on Foreign Exchange Administration, a penalty of RMB 1.4012 million was imposed. The SAFE exercised the “Watch list” management on Mr. Zhou, and included him into the credit information system of the People’s Bank of China. Case 10: Illegal trading of foreign exchange by a Mr. Yang from Guangdong From May 2015 to April 2016, Mr. Yang conducted illegal purchase of US dollars several times via underground banks, involving a total amount equivalent to RMB 4.5307 million. Such behavior violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and Article 32 of the Regulations for the Administration of Settlement and Sales of and Payment in Foreign Exchange, and was considered illegal trading of foreign exchange. In accordance with Article 45 of the Regulations on Foreign Exchange Administration, a penalty of RMB 317,100 was imposed. The SAFE exercised the “Watch list” management on Mr. Yang, and included him into the credit information system of the People’s Bank of China. Case 11: Illegal trading of foreign exchange by a Mr. Xu from Jiangsu From October 2017 to April 2018, Mr. Xu conducted illegal trading of Hong Kong dollars at Macau casinos several times via underground banks, involving an amount equivalent to RMB 2.6598 million. Such behavior violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and Article 32 of the Regulations for the Administration of Settlement and Sales of and Payment in Foreign Exchange, and was considered illegal trading of foreign exchange. In accordance with Article 45 of the Regulations on Foreign Exchange Administration, a penalty of RMB 320,000 was imposed. The SAFE exercised the “Watch list” management on Mr. Xu, and included him into the credit information system of the People’s Bank of China. Case 12: Illegal trading of foreign exchange by a Mr. Feng from Liaoning From December 2017 to May 2018, Mr. Feng conducted illegal trading of Hong Kong dollars at Macau casinos several times via underground banks, involving an amount equivalent to RMB 10.8179 million. Such behavior violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and Article 32 of the Regulations for the Administration of Settlement and Sales of and Payment in Foreign Exchange, and was considered illegal trading of foreign exchange. In accordance with Article 45 of the Regulations on Foreign Exchange Administration, a penalty of RMB 1.30 million was imposed. The SAFE exercised the “Watch list” management on Mr. Feng, and included him into the credit information system of the People’s Bank of China. Case 13: Evasion of foreign exchange through split transactions by a Mr. Zhou from Shanghai From January to December 2015, to illegally transfer assets overseas, Mr. Zhou used the annual quotas of 21 domestic individuals for foreign exchange purchase to purchase foreign exchange and transfer personal funds split to overseas accounts, illegally transferring funds of USD 1.0496 million in total. Such behavior violated Article 7 of the Measures for the Administration of Individual Foreign Exchange and was considered evasion of foreign exchange. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, a penalty of RMB 330,000 was imposed. The SAFE exercised the “Watch list” management on Mr. Zhou, and included him into the credit information system of the People’s Bank of China. Case 14: Evasion of foreign exchange through split transactions by a Mr. Shen from Shanghai From January to July 2016, to illegally transfer assets overseas, Mr. Shen used the annual quotas of 34 domestic individuals for foreign exchange purchase to purchase foreign exchange and transfer personal funds split to overseas accounts for purchasing overseas house properties, illegally transferring funds of CAD 2.04 million in total. Such behavior violated Article 7 of the Measures for the Administration of Individual Foreign Exchange and was considered evasion of foreign exchange. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, a penalty of RMB 510,000 was imposed. The SAFE exercised the “Watch list” management on Mr. Shen, and included him into the credit information system of the People’s Bank of China. Case 15: Evasion of foreign exchange through split transactions by a Mr. Sui from Jilin From November 2017 to April 2018, to illegally transfer assets overseas, Mr. Sui used the annual quotas of 173 domestic individuals for foreign exchange purchase to purchase foreign exchange and transfer personal funds split to overseas accounts for purchasing overseas house properties, illegally transferring funds of CAD 12.0565 million in total. Such behavior violated Article 7 of the Measures for the Administration of Individual Foreign Exchange and was considered evasion of foreign exchange. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, a penalty of RMB 3.009 million was imposed. The SAFE exercised the “Watch list” management on Mr. Sui, and included him into the credit information system of the People’s Bank of China. 2018-12-06/en/2018/1206/1478.html
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In order to implement the gist of the 19th CPC National Congress, put into practice the proactive opening-up policy, facilitate the creation of new pattern of overall opening-up covering all dimensions, multiple levels and extensive field, and deepen the reform of “ delegation, regulation and service” on an ongoing basis, the State Administration of Foreign Exchange (SAFE) has recently decided to carry out the pilot program on foreign exchange receipts and payments facilitation for trade in goods in Guangdong-Hong Kong-Macao Greater Bay Area, Shanghai city and Zhejiang province, so as to support prudential and compliant banks to implement more convenient measures when handling trade receipts and payments for enterprises with good credit standing. Major contents of the pilot program include four parts. The first is optimizing verification of foreign exchange receipt and payment documents for trade. The banks shall handle foreign exchange businesses for trade in goods in accordance with three principles of “knowing your customer”, “understanding your business” and "due diligence”. The second is that foreign exchange receipts from trade are not required to go through accounts pending verification. Foreign exchange receipts of pilot enterprises under authentic and legitimate trade in goods can be entered into foreign exchange settlement account under the current account or settled directly. The third is abolishing special re-exchange business registration formalities. Overdue re-exchange and re-exchange via routes other than the original one can be handled with a bank directly. The fourth is simplifying import declaration verification. If a bank can confirm that foreign exchange payment for trade is authentic and lawful, the electronic information verification formalities for import declaration can be waived. The SAFE will further promote trade and investment liberalization and facilitation based on pilot results, so as to create sound business environment and promote the stable and healthy development of the economy. 2019-01-02/en/2019/0108/1484.html
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Since the beginning of 2018, the State Administration of Foreign Exchange (SAFE) has implemented the spirit of the 19th CPC National Congress, the Central Economic Work Conference and the National Financial Work Conference, with a focus on deepening reform in key areas and working on legislation and files consolidation in key areas. To make it easier for the public to inquire and use, the SAFE has recently updated the Catalogue of Effective Laws and Regulations on Foreign Exchange Administration (Catalogue). The Catalogue classifies 220 policies, laws and regulations on foreign exchange administration released as of June 30, 2018 into eight major categories, namely, Comprehensive Foreign Exchange Administration, Foreign Exchange Administration under the Current Account, Foreign Exchange Administration under the Capital Account, Regulation of the Foreign Exchange Business of Financial Institutions, RMB Exchange Rate and Foreign Exchange Market, BOP and Foreign Exchange Statistics, Foreign Exchange Inspections and Applicable Regulations, and Foreign Exchange Technical Management, and into several sub-items further by type of business. The files added to the Catalogue this time around involve statistical survey of trade credit, domestic securities investments of qualified foreign institutional investors, onshore guarantees for offshore loans by insurance institutions, improvement of foreign exchange administration related to forward foreign exchange sales and settlements, statistical system of FDI, and assessment of the implementation of foreign exchange administration regulations among banks. Going forward, the SAFE will continue to carry out the arrangements of the CPC Central Committee and the State Council, with a focus on deepening the reform of foreign exchange administration, and advancing legislation and files consolidation in key areas, so as to facilitate the understanding and use of foreign exchange administration regulations by banks, companies and individuals, promote liberalization and facilitation of trade and investment and improve the service level for the real economy. 2018-07-31/en/2018/0731/1450.html
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Over the past four decades since the reform and opening up policy was implemented, China's foreign exchange market has grown from nothing to the large scale it is at today, with a preliminary market system that adapts to the socialist market economy established, thus playing significant roles in macro control, resource allocation, exchange rate formation and risk management. In 2017, China posted USD 24 trillion in the trading of RMB against foreign currencies in the domestic foreign exchange market. To further support financial institutions in serving the real economy and preventing risks arising from foreign exchange, the State Administration of Foreign Exchange (SAFE) has recently released the Circular on Foreign Exchange Administration for Improving Forward Foreign Exchange Sales and Settlement (Hui Fa No. 3 [2018]) (Circular). Forward foreign exchange sales and settlement are the most basic and one of the major derivatives in the domestic foreign exchange market. Starting from the key links to diversify the trading mechanism, the Circular allows gross or netting settlement as the way of delivery when the forward contract for foreign exchange sales expires, while adopting netting delivery for forward foreign exchange settlement in 2016. This marks forward foreign exchange sales and settlement has been fully market-based in market-oriented pricing, delivery and settlement, and risk management. The Circular will become effective the day it is released. Going forward, the SAFE will continue to deepen the development and liberalization of the foreign exchange market to provide support and guarantee for trade and investment facilitation. 2018-02-13/en/2018/0213/1418.html