Recently, the People’s Bank of China issued the “Notice on Supporting Cross-border RMB Settlement of New Foreign Trade Business Forms” (hereinafter referred to as the “Notice”) to support banks and payment institutions to better serve the development of new foreign trade business forms. The “Notice” has been since It will be implemented on July 21, 2022.
The main contents of the “Notice” include:
First, increase support for new foreign trade formats and improve cross-border RMB business-related policies for new foreign trade formats such as cross-border e-commerce.
The second is to expand the scope of cross-border business of payment institutions from trade in goods and trade in services to current account.
The third is to clarify the business development and filing requirements for banks, payment institutions and other relevant business entities.
The fourth is to clarify the requirements for business authenticity review, anti-money laundering, anti-terrorist financing, anti-tax evasion and data reporting, consolidate the responsibilities of banks and payment institutions, and prevent and control business risks.
The People’s Bank of China stated that it will steadily promote the implementation of the “Notice”, provide good supporting financial services for new foreign trade format market entities, and effectively play the positive role of cross-border RMB business in serving the real economy and promoting the high-quality development of new foreign trade formats. , support and guide the healthy, sustainable and innovative development of new foreign trade formats and models, and help stabilize the macroeconomic market.
It is reported that on January July this year, in order to improve the cross-border RMB business management of new foreign trade formats, support banks and payment institutions to better To serve the development of new foreign trade formats, the People’s Bank of China has drafted the “Notice on Supporting Cross-border RMB Settlement of New Foreign Trade formats (Draft for Comment)”.
Notice on supporting cross-border RMB settlement of new foreign trade formats
Shanghai Headquarters of the People’s Bank of China, all branches and business management departments, all central branches in provincial capital cities, all central branches in sub-provincial cities; China Development Bank, all policy banks, state-owned commercial banks, Postal Savings Bank of China, all joint-stock companies Commercial banks; China UnionPay, Cross-border Clearing Company, Netlink Clearing Co., Ltd.:
In order to implement the “Opinions of the General Office of the State Council on Accelerating the Development of New Business Forms and New Models of Foreign Trade” (Guobanfa [2021] No. 24), we will further leverage the cross-border RMB settlement business to serve the real economy, To promote the role of trade and investment facilitation and support the development of new foreign trade formats, the relevant matters are hereby notified as follows:
1. On the basis of the three principles of “know your customer”, “know your business” and “due diligence”, domestic banks can pay with non-banks that have obtained Internet payment business licenses in accordance with the law. Institutions (hereinafter referred to as payment institutions) and legally qualified clearing institutions cooperate to provide current cross-border RMB settlement services for market trading entities and individuals.
The term “market trading entities” as mentioned in this Notice refers to operators of new foreign trade formats such as cross-border e-commerce, market procurement trade, overseas warehouses and comprehensive foreign trade service enterprises, as well as consumers who purchase goods or services.
2. Domestic banks that cooperate with payment institutions should have more than 3 years of experience in carrying out cross-border RMB settlement business, meet the relevant requirements of reserve banks, and have the ability to review the cross-border RMB settlement business of payment institutions. Ability to be authentic and legal, and have anti-money laundering, anti-terrorist financing, and anti-tax evasion system processing capabilities that adapt to the characteristics of the cross-border RMB settlement business of payment institutions.
3. Payment institutions participating in providing cross-border RMB settlement services stipulated in this Notice shall meet the following conditions:
(1) Register within the country and obtain an Internet payment business license in accordance with the law.
(2) Ability to use RMB for cross-border settlementreal cross-border business needs.
(3) Have a sound internal control system and full-time personnel related to cross-border business, and be able to collect merchant information and access management, collect transaction information, and review the authenticity and legality of cross-border business in accordance with the requirements of this notice and relevant regulations.
(4) Have specific systems and measures for anti-money laundering, anti-terrorist financing, and anti-tax evasion related to cross-border RMB settlement services; have efficient system processing and docking capabilities for anti-money laundering, anti-terrorist financing, and anti-tax evasion related to cross-border RMB settlement services.
(5) Comply with relevant national laws and regulations, operate in compliance with regulations, have strong risk control capabilities, and have no serious violations in the past two years.
4. When domestic banks handle cross-border RMB settlement business for payment institutions, they should evaluate the payment institution’s business development capabilities in accordance with Article 3 of this Notice, sign a cross-border RMB settlement business agreement with the payment institution, and clarify the rights and obligations of both parties. And file it with the local branch of the People’s Bank of China at or above the sub-provincial city central branch (hereinafter referred to as the branch of the People’s Bank of China) within 10 working days. Domestic banks should evaluate the business development capabilities of registered payment institutions every year and report regularly to the local branch of the People’s Bank of China. If the cross-border RMB settlement business agreement is changed, the domestic bank shall file a record with the local branch of the People’s Bank of China within 10 working days. If a payment institution or a cross-border RMB settlement business agreement that is assessed as not meeting the relevant requirements of Article 3 of this Notice is terminated, the domestic bank shall report to the local branch of the People’s Bank of China within 10 working days and handle the cancellation filing.
5. The cross-border RMB settlement business stipulated in this notice should have a real and legal transaction basis and comply with relevant national laws and regulations. If a domestic bank cooperates with a payment institution to carry out cross-border RMB settlement business as stipulated in this notice, the two parties shall negotiate to establish a business authenticity review mechanism and jointly review the authenticity and legality of the business background. They shall not provide cross-border services for illegal transactions in any form. RMB settlement services.
(1) Domestic banks and payment institutions should strengthen the management of market transaction entities, collect basic information on market transaction entities in accordance with the law, verify and update it regularly, and establish a negative list of market transaction entities.
(2) Domestic banks and payment institutions should reasonably determine the single transaction limits for various cross-border RMB settlement businesses based on the types of market transaction entities, transaction characteristics, etc.
(3) Domestic banks and payment institutions should establish and improve the in-process review and post-sample inspection system for cross-border RMB settlement business, strengthen the monitoring of abnormal transactions such as large-value transactions, suspicious transactions, high-frequency transactions, and retain relevant information at least5 years for future reference.
(4) Payment institutions should develop a transaction information collection and verification system. For transactions with a high risk of violations, payment institutions should require market transaction entities to provide relevant documents and materials; if they cannot confirm that the transaction is authentic and legal, they should refuse to handle relevant cross-border RMB settlements. business.
(5) If domestic banks that cooperate with payment institutions discover abnormal situations, they should promptly take corresponding measures, including but not limited to requiring payment institutions and transaction-related parties to provide true and legal documentary materials for suspicious transactions; confirm that abnormal situations have occurred , the domestic bank shall report to the local branch of the People’s Bank of China within 5 working days. Domestic banks shall bear joint and several liability for payment institutions’ illegal operations in accordance with the law.
If domestic banks directly provide cross-border RMB settlement services stipulated in this Notice to market trading entities, they shall refer to this Notice.
6. When providing cross-border RMB settlement services, domestic banks and payment institutions should perform anti-money laundering, anti-terrorist financing, and anti-tax evasion obligations in accordance with the law, and comply with relevant regulations on combating cross-border gambling, telecommunications network fraud, and illegal engagement in payment institution business.
7. Domestic banks should submit cross-border receipts and payments data in a timely, accurate and complete manner in accordance with the relevant information reporting requirements of the RMB Cross-border Receipts and Payments Information Management System (RCPMIS). Amount settlement should be restored to collection and payment information reporting. Domestic banks and payment institutions should properly preserve the original transaction-by-transaction data of domestic actual collection and payment institutions or individuals before centralized collection and payment or netting settlement for future reference.
8. The People’s Bank of China and its branches may carry out off-site monitoring of the cross-border RMB settlement business of new foreign trade formats carried out by domestic banks and payment institutions in accordance with the law, and domestic banks and payment institutions shall cooperate.
9. Support domestic banks and payment institutions to improve their service capabilities, increase support for cross-border RMB settlement business in new foreign trade formats, enrich supporting products for cross-border RMB settlement business in new foreign trade formats, and reduce business processing costs for market transaction entities.
10. This notice will come into effect on July 21, 2022. If Article 7 and other provisions of the “Guiding Opinions of the People’s Bank of China on Implementing the “Several Opinions of the General Office of the State Council on Supporting the Stable Growth of Foreign Trade” (Yinfa [2014] No. 168) are inconsistent with this notice, this notice shall prevail.
�Banks and their branches may carry out off-site monitoring of the cross-border RMB settlement business of new foreign trade formats carried out by domestic banks and payment institutions in accordance with the law, and domestic banks and payment institutions shall cooperate.
9. Support domestic banks and payment institutions to improve their service capabilities, increase support for cross-border RMB settlement business in new foreign trade formats, enrich supporting products for cross-border RMB settlement business in new foreign trade formats, and reduce business processing costs for market transaction entities.
10. This notice will come into effect on July 21, 2022. If Article 7 and other provisions of the “Guiding Opinions of the People’s Bank of China on Implementing the “Several Opinions of the General Office of the State Council on Supporting the Stable Growth of Foreign Trade” (Yinfa [2014] No. 168) are inconsistent with this notice, this notice shall prevail.
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