On December 24, 2021, People's Bank of China (PBoC), State Administration of Foreign Exchange (SAFE) issued Notice on Issues on Supporting the Development of New Types of Offshore International Trade (hereinafter referred to as “the Notice”).

The main content of the Notice include:

·   Encouraging banks to optimize financial services and provide cross-border fund settlement facilities

·   Banks should formulate business specifications based on new types of offshore international trade

·   improve the internal control system

·   accurately identify business models of new offshore international trade customers

·   focus on supporting new types of offshore international trade that support the real economy and manufacturing industry

·   Information storage requirements

·   Offshore transfer transactions should be settled in the same bank and in the same currency

·   Banks should take precautions against risks and strengthen trade background checks

·   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

·   Integrated management of domestic and foreign currencies

·   PBoC and SAFE will supervise and manage the settlement of cross-border domestic and foreign currency funds 

·   Strengthening information sharing

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