Introduction to SAFE (State Administration of Foreign Exchange) Declaration

The SAFE (State Administration of Foreign Exchange) Declaration functionality is described below:

SAFE

So far, as CNY is not free convertible, in China, business related to FCY are strictly monitored by various departments of the China government, including NDRC (National Development and Reform Commission), Custom, PBOC, SAFE, etc. in order to control the Foreign Exchange Reserve in China. State Administration of Foreign Exchange (SAFE) is the highest organization in China in charge of monitoring all the foreign currency business and CNY Cross-border business in China (Hong Kong and Macau allowed to settle trading by CNY now) based on a series of related regulations banking in China.

Most of the SAFE’s regulations are required banks to provide regulatory reports; some of them are required online checking or enquiry. Basically, the following areas are expected to be covered in this document:

• International Balance of Payment Declaration (BOP Reporting, 国际收支之基础信息申报).
• Information Declaration for the A/Cs in FCY (ABOQ, 外汇帐户信息申报).
• Data extracted for 1104 Data Monitoring of Financial Institutions in Banking (1104 银行业金融机构数据信息监管).

AML

Regarding to the regulation of Financial Institutions report big amount and shadiness transactions which are suspected of being involved terri list financing, banks in China need to report the big amount and shadiness transactions at a 10 days base to PBOC’s AML Bureau in reporting. The PBOC’s AML Bureau also provided the detailed interface standard for these reporting data submission. The core banking system is normally required to provide the data for this reporting.

A new regulation published by PBOC’s AML Bureau in March 2012 regarding to The Regulation for Payment Institutions AML and Anti-Terrified Financing, banks are required to do KYC (Know Your Customer) based on the regulation, for example.

Different type of customers with different details of customer information to be captured by the bank.

Detailed information of payment transaction including purpose of the payment, counterparty of the customer etc. is required to be captured. The core banking system is also need to provide the data for this reporting.

Click here to understand the terms and abbreviations used in this functionality.