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In order to facilitate overseas individuals to remit in funds through banks, and to regulate the foreign exchange administration of overseas remittance business, we have decided, through consultation with the People's Bank of China, to allow the overseas branches of the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, and the China Construction Bank that have necessary conditions to provide the trial service of remittance with advance settlement of individual foreign exchange (hereinafter referred to remittance with advance settlement). The relevant requirements are hereby notified as follows: I. BASIC ADMINISTRATION PRINCIPLES AND OPERATION PROCEDURES (1) The remittance with advance settlement mentioned herein refers to a specific remittance method which means that, where an overseas branch handles an overseas individual's remittance in foreign currency into China, if the remitter requires the remittance to be paid to the remittee in RMB, that overseas branch shall convert the remittance into RMB at the buying price for spot exchange on the day of remittance fixed by its head office, and inform the remitter of the RMB value remitted before remitting the foreign currency to the designated recipient bank in China, and the recipient bank in China shall, according to the payment instructions of the overseas branch, notify the paying bank to pay the remittee directly in RMB. (2) The "overseas branches with necessary conditions" mentioned herein refer to the overseas branches that are authorized by their head offices to provide trial service of remittance with advance settlement, and that have been approved by the local financial authorities to provide remittance services for the residents or non-residents. (3) Restrictions on the clients of the trial service of remittance with advance settlement. The remitter of remittance with advance settlement shall be an overseas individual, including resident individual and non-resident individual, and the remittee shall be a resident individual in China. (4) Restrictions on the business scope and remittance amount of the banks' trial service of remittance with advance settlement. Banks' service of remittance with advance settlement only covers the remittance of foreign currency under the individual current account, and shall not include remittance of the foreign currency under the capital account. For strict compliance with the provisions of the state on foreign exchange administration, the amount of a single remittance with advance settlement shall be limited to, for the time being, no more than (including) US$50,000 or the equivalent. Among which, the remittance of no more than (including) US$10,000 or equivalent may be directly handled by the overseas bank; and with respect to the remittance ranging from US$10,000 to (including) US$50,000 or equivalent, the overseas bank shall examine the identity certificate and fund resource certificate of the remitter, and shall keep a photocopy of the identity certificate and the fund resource certificate of the remitter for reference. In order to guarantee the recipient bank in China to make accurate international balance statistical reports, the overseas branch shall transmit the following information to the recipient bank in China: name of the remitter, name of the remittee, remittance value in foreign currency, remittance value in RMB, and the transaction nature. (5) The bank providing trial service of remittance with advance settlement shall designate the business department of its head office or a branch in China as the recipient bank in China, of which the major functions are: 1. Handling the transfer of foreign currency for remittance with advance settlement in a concentrated way; 2. Assigning RMB to the paying bank according to the instructions of the overseas remittance bank, and the paying bank shall pay the remittee; 3. Handling the exchange settlement formalities for the fund remitted in by overseas remitting banks; and 4. Reporting remittance in large amount for record and making international balance statistics report for the remittee. The recipient bank in China shall, pursuant to the Measures for the Administration of Report of Large-Amount or Doubtful Foreign Currency Transactions of Financial Institutions formulated by the People's Bank of China and the relevant provisions on foreign exchange administration, report the large-amount and doubtful foreign exchange transactions to the local administrations of foreign exchange in a unified way. The recipient bank in China shall also, pursuant to the Measures for International Balance Statistical Reports and the implementation rules thereof, and the relevant operational rules, make an international balance statistical report for the remittee transaction by transaction. Limited amount report shall not be applied to remittance with advance settlement. (6) An overseas individual may freely select the method of remittance with advance settlement or general remittance of foreign currency, and the overseas branch may not compulsorily require the remitter to apply any certain remittance method. (7) An overseas branch shall, with respect to the rate used in remittance with advance settlement, use the buying price of the current day fixed by its head office in the conversion. (8) With respect to the remittance speed, an overseas branch shall remit the foreign currency to the recipient bank in China on the current day when it processes the remittance for the client. The recipient bank in China shall complete the formalities for transfer of received foreign currency and notify the paying bank on the current day when it receives the remittance instructions from the overseas branch. And the recipient bank in China shall complete the payment formalities on the current day when it receives the payment notification from the recipient bank. (9) In order to avoid the risks that the recipient bank has in the transfer of received foreign currency, the overseas remitting bank shall allocate settled foreign currency to the recipient bank in China as the initial RMB fund. The recipient bank in China needs to set up a special account for the initial RMB fund, and that account may not be overdrawn as a principle, and any overdraft occurring may not be longer than one day. The recipient bank in China shall, within 2 days from occurrence of overdraft, put on record the overdraft with the local people's bank. The recipient bank in China shall check with the overseas remitting bank with respect to the use of the RMB initial fund. The RMB initial fund shall be managed by the head office of a bank in a unified way. The head office shall propose the scale of foreign currency corresponding to the RMB initial fund in a unified way with the People's Bank of China when applying for providing the service of "remittance with advance settlement", such scale shall be determined after being put on record with the People's Bank of China and approved by SAFE, and the exchange settlement formalities shall be gone through. II. APPLICATION PROCEDURES FOR PROVIDING TRIAL SERVICE OF REMITTANCE WITH ADVANCE SETTLEMENT A bank shall file an application for providing the service of remittance with advance settlement with the People's Bank of China in advance, and the application shall be examined and approved by the People's Bank of China in conjunction with SAFE. The application materials of the bank shall include: application report, operational rules for the service of remittance with advance settlement, basic information about the overseas branch, basic information about the recipient bank in China, planned amount of the settled foreign currency allocated in advance as the RMB initial fund, remittance route, balancing mechanism, internal control system, exchange rate, and remittance fee used in the trial service, and the measures for the administration of the report of large-amount and doubtful foreign exchange transactions and the international balance statistics report of the recipient bank in China. |
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