|
Welcome Guest
|
|
You are using Guest Account
|
|
||||||||||||||||||||||||||||||||||
|
Though, this year, China has had its favorable balance of trade steadily decreased and there was once an unfavorable balance, due to the anticipation of RMB appreciation for various reasons, there is still a strong net inflow of foreign exchange, especially in recent months, the favorable balance of settlement and sale of foreign exchange has rapidly increased, which is higher than the historical record for the period and results in a rapid increase in the country's foreign exchange reserve. In addition to the special inspection of banks' receipt and settlement of foreign exchange as carried out last year, in this year, the State Administration of Foreign Exchange (SAFE) have formulated and implemented a series of measures for strengthening the control of foreign exchange inflow and settlement and have further strengthened the monitoring and inspection of foreign exchange inflow and settlement, discovering that some banks, enterprises and individuals failed to strictly observe and implement the provisions of the state concerning foreign exchange control when handling foreign exchange settlement, which has incited the irregular movement of funds with some localities which have seen an apparently unusual increase of foreign exchange settlement, and which adversely affect the effects of macro control. With a view to resolutely carry on the unified arrangement of the Central Government for macro economic control, effectively guarding against the concussion of the inflow of overseas speculative funds on China's economic and financial stability and effectively maintaining the payments equilibrium, some matters relating to further strengthening the control of foreign exchange inflow and settlement are hereby clarified as follows: 1. Each SAFE branch and sub-branch (hereinafter referred to the "administration of foreign exchange") and each bank shall, from the point of maintaining the country's financial stability, conscientiously implement and carry out the working principles as determined at the working meeting of the People's Bank of China and the national meeting on foreign exchange control as put forward early this year, effectively strengthen the control of foreign exchange inflow and settlement and handle receipt and settlement of foreign exchange in strict accordance with the Provisions concerning the Control of Settlement, Sale and Payment of Foreign Exchange (No. 210 [1996] of the People's Bank of China) and the Interim Measures for the Control of Designated Foreign Exchange Banks' Settlement and Sale of Foreign Exchange (Decree No. 4 [2002] of the People¡¯s Bank of China), as well as the Circular of the State Administration of Foreign Exchange on Improving the Work of Verification of Foreign Exchange Settlement under Capital Account and Registration of External Debts of Enterprises with Foreign Investment (No. 42 [2004] of SAFE), Circular of the State Administration of Foreign Exchange on Implementing the Measures for the Control of External Debts of Domestic Foreign-funded Banks (No. 59 [2004] of SAFE), Circular of the State Administration of Foreign Exchange on Standardizing the Control of Settlement of Foreign Exchange of Resident Individuals (No. 18 [2004] of SAFE) and the Circular of the State Administration of Foreign Exchange on Standardizing the Control of Foreign Exchange of Resident Individuals (No. 6 [2004] of SAFE). 2. The administration of foreign exchange shall pay close attention to the new trend of foreign exchange inflow and settlement. On the one hand, it shall, by making use of the system of declaration for statistics of international balance of payment, information system for the control of foreign exchange accounts and information system for anti-money laundering, strengthen off-the-spot supervision and control, keep timely informed of the present trend and character of foreign exchange inflow, strengthen the work of investigation and research and put forward practical policy proposals from the point of strengthening the control and making proper policies. On the other hand, it shall exert more efforts to check unusual or suspicious foreign exchange inflow, and give severe punishment on the foreign exchange settlement that violate any of the provisions concerning foreign exchange control in accordance with the Regulations of the People's Republic of China on Foreign Exchange Control and other relevant provisions and the Procedures for Checking and Dealing with Acts in Violation of Foreign Exchange Control. 3. The administration of foreign exchange shall sum up its experience in the special inspection of the receipt and settlement of foreign exchange as carried out last year and, based on the irregular activities and problems in the receipt and settlement of foreign exchange as discovered this year, follow up the reform and consolidation of the banks concerned and severely deal with and publicly condemn banks that continue to handle the receipt and settlement of foreign exchange in an irregular manner, so as to urge banks to do business strictly according to law. 4. Each designated Chinese- and foreign-funded foreign exchange bank shall strictly observe the provisions of the state concerning foreign exchange control, strengthen internal control, urge its branches to carefully check the authenticity and regularity of transactions and handle the receipt and settlement of foreign exchange in a standardized way. Each bank shall take the initiative to make reform and consolidation with regard to and be more watchful against irregular acts and problems discovered in the inspection, keep alert to the irregular acts as disclosed by the administration of foreign exchange and promptly improve its management, and report to the local administration of foreign exchange any and all unusual and suspicious transactions as discovered when handling business. Upon receipt of this Circular, each SAFE branch shall promptly transmit it to its sub-branches and all foreign-funded banks, urban commercial banks, rural commercial banks and rural credit cooperatives under its jurisdiction; the head office of each designated Chinese-funded foreign exchange bank shall promptly transmit it to its branches. Problems encountered in the implementation hereof shall be promptly reported to the SAFE. |
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
|
Copyright 2002 NovexCn.com
|