Rules and Regulations
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- Index number:
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- Dispatch date:
- 2009-07-13
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- Publish organization:
- State Administration of Foreign Exchange
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- Exchange Reference number：
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- Name：
- Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Management of Domestic Foreign Exchange Accounts of Overseas Institutions
Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Management of Domestic Foreign Exchange Accounts of Overseas Institutions
| The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange 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: In order to standardize the opening and use of domestic foreign exchange accounts by overseas institutions and other relevant operations, to promote the facilitation of trade and investment, and to prevent financial risks, the relevant issues are hereby notified as follows according to the related provisions of the Regulations of the Peoples Republic of China on Foreign Exchange Administration. 1. Overseas institutions as stated in this Circular refer to institutions legally registered and established outside the territory of China (including Hong Kong SAR, Macao SAR, and Taiwan Province). Domestic banks in this Circular refer to Chinese-funded banks and foreign-funded banks that are qualified to accept public deposits and handle domestic and overseas settlements in accordance with the law. The domestic foreign exchange accounts of overseas institutions referred to in this Circular do not include domestic offshore accounts of overseas institutions (accounts opened by overseas institutions according to the regulations of the offshore business departments of the domestic banks that have obtained eligibility to handle offshore banking businesses in accordance with the law). 2. Overseas institutions and domestic banks shall, in accordance with the provisions of this Circular, open and use foreign exchange accounts, conduct foreign exchange receipt and payment business, and abide by the provisions as provided by the relevant laws and regulations of the State. 3. When opening foreign exchange accounts for overseas institutions, the domestic banks shall examine and verify the materials for the account opening, such as the documentary evidence testifying to the legality of the overseas registration and establishment of the overseas institutions. In cases when the account opening materials, such as the documentary evidence, are presented in languages other than Chinese, the overseas institutions shall also provide Chinese translations of the corresponding evidence. Unless otherwise specified by the SAFE, the opening of foreign exchange accounts by domestic banks for overseas institutions is not subject to the approval of the SAFE and its branches or sub-branches (hereinafter referred to as the Foreign Exchange Administrations). The account name on the domestic foreign exchange accounts of overseas institutions shall conform with the name presented in the documentary evidence testifying to the legality of the overseas registration and establishment (or the corresponding Chinese translation) of the overseas institutions. 4. When opening foreign exchange accounts for overseas institutions, the domestic banks shall mark NRA (NON-RESIDENT ACCOUNT) preceding the foreign exchange account numbers in a uniform manner, i.e., NRA + the foreign exchange account number, and at their discretion shall distinguish between banks and non-bank institutions among overseas institutions, so that the domestic payees and payers and their due banks and paying banks with fund transfers from/to the said foreign exchange accounts will be able to accurately identify whether the foreign exchange accounts are domestic foreign exchange accounts of overseas institutions. The domestic banks shall, within 18 months after implementation of this Circular, complete the adjustments to their internal systems for affixing the NRA mark in a uniform manner on the domestic foreign exchange accounts of overseas institutions as stipulated in the preceding paragraph and the uniform marking of NRAin front of the account number of the domestic foreign exchange accounts that were opened prior to the issuance of this Circular and other relevant work. The domestic banks shall comply with the Circular of the State Administration of Foreign Exchange and the General Administration of Quality Supervision, Inspection, and Quarantine of the Peoples Republic of China on the Issuance of Operational Rules on the Coding for Special Institutions in the Declaration of the Balance of Payments Statistics (Huifa No.131 [2003]) in applying for and acquiring codes for overseas institutions that open foreign exchange accounts, conducting basic information registration for overseas institutions at the Foreign Exchange Administrations, and submitting the detailed information about the account opening, balances and receipts, and payments of the domestic foreign exchange accounts of overseas institutions to the Foreign Exchange Administrations via the foreign exchange account management information system. Foreign exchange accounts such as inter-bank deposit accounts opened by overseas banks in domestic banks are not subject to the provisions stipulated in this paragraph. 5. Foreign exchange receipts and payments of domestic institutions and individuals from/to domestic foreign exchange accounts of overseas institutions shall be subject to cross-border transaction administration. Domestic banks shall handle such foreign exchange receipts and payments after examining and verifying the valid commercial documents and vouchers of the domestic institutions and individuals according to foreign exchange administration regulations on cross-border transactions. If payments are made by overseas institutions to domestic institutions and individuals via the domestic foreign exchange accounts prior to completion of the NRA marking by the domestic banks, the remitting bank shall note NRA PAYMENT in the transaction postscript of the remittance instruction so that the due bank can identify whether the funds are remitted from a domestic foreign exchange account of overseas institutions. When payments are made by domestic institutions and individuals to the domestic foreign exchange accounts of overseas institutions, the domestic institutions and individuals shall, in addition to providing valid commercial documents and vouchers according to the regulations, provide the remitting banks with documentary evidence to demonstrate the nature of the foreign exchange account of the beneficiary; in cases when the remitting bank cannot identify the nature of the foreign exchange account due to a lack of clarity in the provided documentary evidence, the remitting bank shall inquire in writing to the due bank regarding the nature of the foreign exchange account, and the due bank shall respond through a written confirmation. 6. Unless otherwise specified by the SAFE, where a domestic foreign exchange account of an overseas institution is involved in (a) a foreign exchange collection from home or abroad; (b) a foreign exchange transfer with another domestic foreign exchange account of the overseas institution; (c) a foreign exchange transfer with an offshore account, or; (d) a payment made overseas, the domestic bank may directly handle such business as per the clients directions. 7. Fund receipts and payments via the domestic foreign exchange accounts of overseas institutions from/to domestic or overseas parties and consequent changes in the balance of accounts shall be subject to declaration of the balance of payments statistics according to the relevant regulations. 8. The deposit and withdrawal of cash in foreign currency via the domestic foreign exchange accounts of overseas institutions and the foreign exchange settlement of funds in such accounts in a direct or disguised manner are prohibited unless when approved by branches or administrative departments of the SAFE at the locality of registration. 9. The balance of funds in the domestic foreign exchange accounts of overseas institutions shall be incorporated into short-term external debt quota management of the domestic banks, unless otherwise specified by the SAFE. In cases where the said balance is used as pledge for domestic institutions to obtain loans from domestic banks, it shall be handled in accordance with the foreign exchange administration regulations on overseas guarantees under the item of domestic loans. 10. When conducting business related to the domestic foreign exchange accounts of overseas institutions, the domestic banks shall abide by the provisions of the anti-money laundering laws and the administrative regulations and departmental rules such as those on the reporting of large-sum and suspicious transactions. 11. Where overseas institutions and individuals open offshore accounts in the offshore business departments of domestic banks that are eligible for offshore banking business according to the law, the foreign exchange receipts and payments of such offshore accounts from/to the domestic institutions shall be handled in strict compliance with the Measures for the Administration of Offshore Banking Business (Yinfa No. 438 [1997]), the detailed implementation rules, and other relevant regulations. 12. For the opening, use, and cancellation of foreign exchange accounts of qualified overseas institutional investors, special foreign exchange accounts of foreign investors, B-share foreign exchange accounts of overseas institutions, and domestic foreign exchange accounts of embassies and consulates of foreign countries (regions) in China with diplomatic immunity or of representative institutions of international organizations in China, if there are applicable regulations stipulated by the SAFE, the opening, use, and cancellation of such accounts shall be subject to these regulations. If there are no applicable regulations, the opening, use, and cancellation of such accounts shall be conducted in accordance with the provisions of this Circular, which include the marking of NRA, etc. 13. The Foreign Exchange Administrations shall impose a penalty for any acts in breach of the provisions of this Circular according to the foreign exchange administration regulations including the Regulation of the Peoples Republic of China on Foreign Exchange Administration. 14. This Circular shall take effect as of August 1, 2009, except for the provision on submitting detailed information about account opening, balances, as well as receipts and payments of domestic foreign exchange accounts of overseas institutions via the foreign exchange account management information system to the Foreign Exchange Administrations. The SAFE shall separately provide information on the specific time for implementing the latter provision. This Circular shall be interpreted by the SAFE. On receiving this Circular, all SAFE branches and foreign exchange administrative departments shall transmit it in a timely manner to the central sub-branches, sub-branches, and designated foreign exchange banks under their administration. For any questions arising from implementation of this Circular, please provide timely feedback to the General Affairs Department of the SAFE. Tel: 68402429, 68402129 Fax: 68402430 July 13, 2009
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