On the evening of June 20, the People's Bank of China issued the "Notice on Supporting New Formats of Foreign Trade Cross-border RMB Settlement" (hereinafter referred to as the "Notice") to support banks and payment institutions to better serve the development of new foreign trade formats. It will be implemented from the 21st of the month.
The main contents of the "Notice" include: First, increase support for new forms of foreign trade, and improve policies related to cross-border RMB business in new forms of foreign trade 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 the current account. The third is to clarify the business development and filing requirements of relevant business entities such as banks and payment institutions. 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 business development 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 market players of new foreign trade formats, 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. Guide the healthy and sustainable innovation and development of new business forms and models of foreign trade, and help stabilize the macroeconomic market.
On January 7 this year, in order to improve the management of cross-border RMB business in new forms of foreign trade, and to support banks and payment institutions to better serve the development of new forms of foreign trade, the People's Bank of China drafted the "Notice on Supporting Cross-border RMB Settlement in New Forms of Foreign Trade (Comments for Comments)" draft)".
↓ ↓ The following is the full text of the policy ↓ ↓
Notice on Supporting Cross-border Renminbi Settlement in New Formats of Foreign Trade
The Shanghai Headquarters of the People's Bank of China, all branches and business management departments, all central sub-branches in provincial capital (capital) cities, and all central sub-branches in sub-provincial cities; China Development Bank, various policy banks, state-owned commercial banks, Postal Savings Bank of China, all joint-stock companies Commercial Banks; China UnionPay, Cross-border Clearing Company, and Netlink Clearing Co., Ltd.:
In order to implement the "Opinions of the General Office of the State Council on Accelerating the Development of New Formats and New Models of Foreign Trade" (Guo Ban Fa  No. 24), further play the role of cross-border RMB settlement business in serving the real economy, promoting trade and investment facilitation, and supporting foreign trade For the development of new business formats, the relevant matters are hereby notified as follows:
I. On the basis of the three principles of "know your customer", "know your business" and "due diligence", domestic banks may cooperate with non-bank payment institutions (hereinafter referred to as payment institutions) that have legally obtained the Internet payment business license (hereinafter referred to as payment institutions), legal Cooperate with qualified clearing institutions to provide market transaction entities and individuals with cross-border RMB settlement services under the current account.
The term “market transaction 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 foreign trade comprehensive service enterprises, and consumers who purchase goods or services.
2. Domestic banks cooperating with payment institutions should have more than 3 years of experience in conducting cross-border RMB settlement business, meet the relevant requirements of reserve banks, have the ability to review the authenticity and legality of payment institutions’ cross-border RMB settlement business, and have the ability to adapt to The anti-money laundering, anti-terrorist financing, and anti-tax evasion system processing capabilities of payment institutions' cross-border RMB settlement business characteristics.
3. Payment institutions participating in the provision of cross-border RMB settlement services specified in this notice shall meet the following conditions:
(1) Register in China and obtain an Internet payment business license according to law.
(2) It has real cross-border business needs to use RMB for cross-border settlement.
(3) It has a sound internal control system and full-time personnel related to cross-border business, and can effectively 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) It has specific anti-money laundering, anti-terrorist financing, anti-tax evasion and other specific systems and measures related to cross-border RMB settlement services; and has efficient anti-money laundering, anti-terrorist financing, and anti-tax evasion system processing and docking capabilities for 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 handling cross-border RMB settlement business for payment institutions, domestic banks shall evaluate the business development capabilities of payment institutions in accordance with Article 3 of this notice, and sign cross-border RMB settlement business agreements with payment institutions, clarifying the rights and obligations of both parties, and on October 10 Within 1 working day, it will be filed with the branch of the People's Bank of China at or above the central sub-branch in the sub-provincial city of the People's Bank of China (hereinafter referred to as the branch of the People's Bank of China). Domestic banks shall evaluate the business development capabilities of the registered payment institutions every year and regularly report 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 with the local People's Bank of China branch within 10 working days. For payment institutions or cross-border RMB settlement business agreements that have been assessed and do not meet the relevant requirements of Article 3 of this notice, 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.
V. The cross-border RMB settlement business stipulated in this Circular shall have a real and legal transaction basis and comply with the relevant national laws and regulations. If a domestic bank and a payment institution cooperate to carry out the cross-border RMB settlement business stipulated in this Notice, the two parties shall negotiate to establish a business authenticity review mechanism, and jointly conduct a review of the authenticity and legality of the business background, and shall not provide cross-border transactions for illegal transactions in any form. RMB settlement service.
(1) Domestic banks and payment institutions shall strengthen the management of market transaction entities, collect basic information of market transaction entities in accordance with the law, verify and update them regularly, and establish a negative list of market transaction entities.
(2) Domestic banks and payment institutions shall reasonably determine the single transaction limit for various types of cross-border RMB settlement business based on the types of market transaction entities and transaction characteristics.
(3) Domestic banks and payment institutions shall establish and improve the system of in-process review and post-event random inspection of cross-border RMB settlement business, strengthen the monitoring of abnormal transactions such as large-value transactions, suspicious transactions, and high-frequency transactions, and retain relevant information for at least 5 years for future reference.
(4) Payment institutions should formulate transaction information collection and verification systems. For transactions with high risk of violations, payment institutions should require market transaction entities to provide relevant documents and materials; if the transaction cannot be confirmed to be true and legal, they should refuse to handle relevant cross-border RMB settlements. business.
(5) If a domestic bank cooperating with a payment institution finds an abnormal situation, it shall take corresponding measures in a timely manner, including but not limited to requiring the payment institution and transaction related parties to provide true and legal documents for suspicious transactions; The bank shall report to the local branch of the People's Bank of China within 5 working days. Domestic banks shall be jointly and severally liable for the illegal business of payment institutions in accordance with the law.
Where domestic banks directly provide market transaction entities with cross-border RMB settlement services stipulated in this Circular, refer to this Circular for handling.
6. When providing cross-border RMB settlement services, domestic banks and payment institutions shall fulfill their obligations of anti-money laundering, anti-terrorist financing, and anti-tax evasion in accordance with the law, and abide by relevant regulations on cracking down on cross-border gambling, telecommunication network fraud, and illegally engaging in payment institution business.
7. Domestic banks shall submit cross-border receipt and payment data in a timely, accurate and complete manner in accordance with the relevant requirements for information reporting of the RMB Cross-border Receipt and Payment Information Management System (RCPMIS), and the netting settlement shall be restored to the receipt and payment information Submit. Domestic banks and payment institutions shall properly keep the original collection and payment 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 conduct 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 transaction costs for market transaction entities.
10. This notice shall come into force on July 21, 2022. In case of any inconsistency between Article 7 and other provisions of the "Guiding Opinions of the People's Bank of China on Implementing Several Opinions of the General Office of the State Council on Supporting the Stable Growth of Foreign Trade" (Yin Fa  No. 168), this Circular shall prevail.
People's Bank of China
June 16, 2022
Source: People's Bank of China website