TechFlow news, according to the official website of the State Administration of Foreign Exchange (SAFE), in order to further enhance banks' foreign exchange business capabilities, promote facilitation of cross-border trade and investment, and prevent risks associated with cross-border capital flows, SAFE has formulated the "Measures for the Administration of Banks' Foreign Exchange Business (Trial)" based on the "Regulations on Foreign Exchange Control of the People's Republic of China" and related laws and regulations. The Measures will take effect from January 1, 2024.
Chapter V, regarding monitoring and handling of foreign exchange risk transactions, states that banks shall conduct monitoring and analysis of customers' transactions for foreign exchange risk. Upon identifying, through due diligence, ongoing review, or post-transaction monitoring, any information indicating suspected fraudulent trade, fake investment and financing, underground banking, cross-border gambling, export tax rebate fraud, illegal cross-border financial activities involving virtual currencies, or other suspected violations related to cross-border capital flows, banks shall promptly prepare and submit foreign exchange risk transaction reports to the State Administration of Foreign Exchange.
