TechFlow News, on December 27, according to an official announcement, the State Administration of Foreign Exchange (SAFE) released the "Measures for the Management of Foreign Exchange Risk Transaction Reporting by Banks (Trial)", which takes effect immediately. The Measures aim to strengthen foreign exchange risk management in banks, particularly targeting high-risk transactions such as fictitious trade, underground banks, and illegal cross-border financial activities involving virtual currencies, enabling early identification, early warning, and early handling.
The "Measures" consist of four chapters with 23 articles in total. Key contents include: clarifying banks' responsibilities regarding foreign exchange risk transaction reporting, requiring banks to establish monitoring criteria and systems for foreign exchange risk transactions, and mandating regular submission of relevant reports to SAFE; defining the scope of information reporting to cover illicit cross-border fund flows related to suspected fictitious trade, underground banks, cross-border gambling, fraudulently obtaining export tax rebates, and other violations; specifying report content, including basic details of suspicious foreign exchange transactions and proposed measures for handling them; and strengthening internal management requirements for banks, including internal control systems, record retention, and confidentiality management.
