TechFlow news, according to the website of China's State Administration of Foreign Exchange (SAFE), in order to better coordinate development and security, ensure convenience for cross-border trade and investment, prevent and curb foreign exchange-related illegal and unlawful activities, and safeguard the order of the foreign exchange market, SAFE has formulated the "Measures for the Administration of Banks' Reporting on Foreign Exchange Risky Transactions (Trial)" (hereinafter referred to as the "Measures"), based on the "Measures for Banks' Foreign Exchange Business Conduct Management (Trial)" (hereinafter referred to as the "Conduct Measures") and other relevant laws and regulations.
Under the Measures, banks that detect or have reasonable grounds to suspect foreign exchange risky transactions by domestic or overseas institutions or individuals served by the bank (collectively referred to as "transaction entities") shall monitor information related to such risky transactions and submit reports on foreign exchange risky transactions.
Foreign exchange risky transactions refer to activities suspected of involving fictitious trade, fictitious investment and financing, underground banks, cross-border gambling, export tax fraud, illegal cross-border financial activities involving virtual currencies, and other activities suspected of violating foreign exchange regulations; foreign exchange risky transaction information refers to information related to such risky transactions. Banks shall promptly report such foreign exchange risky transaction reports to SAFE through their headquarters or an entity designated by the headquarters.
