On November 11, 2021, People's Bank of China (PBoC) and State Administration of Foreign Exchange (SAFE) are calling for comment on Notice on Supporting Development of New Types of Offshore International Trade (hereinafter referred to as “the Notice”) until 26 Nov 2021.

In the draft of the Notice, it specifies:

• -new type of offshore international trade designates trade where goods involved in the transaction do not enter or exit PRC's frontline customs or are not included in PRC's customs statistics

• -refining the requirements for bank operations: requiring banks to carry out due diligence in strengthening
• -customer classification systems
• -business reviews
• -post-event monitoring

• -bank review requirements: banks should set up audit systems
• -determining the types of transaction documents to be audited
• -confirming that the transaction is true, legal and commercially reasonable 
•  
• -integrated management of domestic and foreign currencies
• -PBoC and SAFE will supervise and manage the settlement of cross-border domestic and foreign currency funds 

• -requiring banks to report abnormal transactions in a timely manner
• -adjusting the firm's customer risk classification in accordance with the requirements of the bank's internal control system

If you need any help or the full text of the Notice, please contact:

assistant@bestao-consulting.com