State Administration of Foreign Exchange, Circular on Adjusting the Administration Mode for Market Entry into and Exit from the Spot Settlement and Sale of Foreign Exchange Businesses of Banks

Issued: April 17 2007
Effective: As of date of issue

Main Contents: The State Administration of Foreign Exchange (SAFE) adjusts the administration mode for market entry into the spot settlement and sale of foreign exchange businesses by various types of banks as follows: (1) engagement in the said businesses by the head office of policy banks and national commercial banks (state-owned commercial banks and share-system commercial banks) shall be subject to the check and approval of SAFE; (2) engagement in the said businesses by the head office of urban commercial banks, rural commercial banks, wholly foreign-owned banks, Sino-foreign equity joint venture banks and rural cooperative financial institutions as well as by branches of foreign banks shall be subject to the check and approval of the local SAFE branch; (3) engagement in the said businesses by branches and sub-branches of banks other than branches of foreign banks as mentioned in Item (2) shall be subject to record filing with the local SAFE branch or sub-branch (Article 1). If the qualifications for engaging in settlement and sale of foreign exchange businesses obtained by a bank prior to the implementation of this Circular do not include services for individuals, the qualifications may be expanded to cover both services for businesses and services for individuals automatically from the date of implementation of this Circular. If the obtained qualifications are only limited to certain services for individuals, the qualifications may be expanded to cover all services for individuals automatically from the date of implementation of this Circular. If a bank needs to expand its business qualifications to cover services for businesses, it shall handle the procedures for market entry in accordance with this Circular (Article 6).

Related Legislation: Circular on the Issue of the , 2006; Measures for the Administration of Foreign Exchange of Individuals, Dec 25 2006; and Implementing Rules for the Measures for the Administration of Foreign Exchange of Individuals, Jan 5 2007