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	SUPPLEMENTARY CIRCULAR OF PEOPLE'S BANK OF CHINA ABOUT FOREIGN CURRENCY BANKNOTE ADMINISTRATION

	(No. 384 [2001] of People's Bank of China on November 29, 2001)


SUBJECT : INDIVIDUALS FOREIGN EXCHANGE SETTLEMENT BUSINESS
ISSUING DEPARTMENT : PEOPLE'S BANK OF CHINA
ISSUE DATE : 11/29/2001
IMPLEMENT DATE : 11/29/2001
LENGTH : 291 words
TEXT :

In order to facilitate foreign exchange purchase and sale of resident individuals, we hereby make the supplementary notification as follows for the implementation of Circular Issued by the People's Bank of China (PBC) on the Administration of Foreign Currency Banknote (Yinfa No. 376 [2001] of People's Bank of China):

I. Each sub-branch of commercial bank with license of individual foreign currency savings and license of foreign exchange, if it has set up sound internal control mechanism and operational procedures, may authorize its outlets to buy foreign currencies from individuals after recording at sub-branch of the PBC.

II. Sub-branch of commercial bank with license of individual foreign currency savings while without license of foreign exchange, for starting the business of buying foreign currencies from individuals, it shall apply for the approval at the local branch of the PBC.

III. Subsidiaries of commercial bank shall meet the following requirements for the business of buying foreign exchange from individuals:

(1) authorized to draw foreign currency savings from individuals;

(2) sound internal control mechanism, including supervision over front-office staff and strict operational procedures;

(3) sound accounting system and statistical and reporting system; and

(4) authorized by its upper level.

IV. The variety of currencies bought from individuals shall not outstrip that of individual foreign currency savings.

V. When examining and approving the application of the commercial bank for business of buying foreign currencies from individuals, the branch of the PBC shall consult with the local branch of State Administration of Foreign Exchange (SAFE). The branch of SAFE shall strengthen day-to-day supervision over this kind of business.

VI. Each foreign exchange designated bank shall formulate sound internal control mechanism and operational procedures and supervise the business of buying foreign currencies from individuals of its outlets strictly.