State Administration of Foreign Exchange, Issues Relating to the Handling of Registration of Foreign Exchange Settlement and Sale Business for the Record by Financial Institutions Circular

Issued: June 1 2004
Effective: as of date of issue
Applicability: In the case of a conflict between previous provisions and this Circular, this Circular shall prevail (Item Six(3)).

Main contents: Part One concerns the documents (the approval documents for engaging in foreign exchange settlement and sale business, the Finance Business Permit and business licence) required for registration for the record. Part Two deals with the administrative jurisdiction in relation to registration for the record and Part Three registration for the record of foreign exchange settlement and sale business of Chinese-invested banks. Foreign-invested banks that have already been engaged in foreign exchange settlement and sale business shall carry out registration for the record on the strength of relevant approval documents and shall comply with relevant criteria provided in Article 12 of the Administration of Foreign Exchange Settlement and Sale Business by Designated Foreign Exchange Banks Tentative Procedures. The relevant branch or sub-branch of the State Administration of Foreign Exchange (SAFE) shall carry out registration for the record according to foreign exchange settlement and sale business for business purposes or for personal purposes before the foreign-invested bank can continue its foreign exchange settlement and sale business (Item Four(1)). For financial institutions that newly apply for conducting foreign exchange settlement and sale business, various SAFE branches or sub-branches and financial institutions shall, prior to the issue of any new provisions by SAFE on such business, continue to implement the relevant provisions of the Circular and the Administration of Foreign Exchange Settlement and Sale Business by Designated Foreign Exchange Banks Tentative Procedures on the administration of granting market access to such business.
Related legislation: Administration of the Foreign Exchange Business of Banks Provisions, Sep 24 1997, CLP 1998 No.1 p4 and People's Bank of China, Administration of Foreign Exchange Settlement and Sale Business by Designated Foreign Exchange Banks Tentative Procedures, Nov 16 2002, CLP 2003 No.2 p7