SAFE requires banks in China to optimize FE procedure
China’s State Administration of Foreign Exchange (SAFE) has released new measures to optimize foreign exchange (forex) banking procedures. According to Hui-fa [2021] No. 13, SAFE requires all banks in China:
• To eliminate the banking review process in the case of current forex banking procedure; this includes payment of overseas education fees by Chinese nationals to an overseas education institution; receipt of overseas salary by Chinese nationals, and receipt of salary from employment in China by foreigners;
• To establish a green channel to deal with “specific/special” foreign exchange transactions by individuals upon checking that a transaction is legitimate;
• To adopt an application declaration form which requires the applicant to guarantee that the application for forex usage is based on valid and legitimate reasons. It holds the applicants legally liable for any untrue disclosure, malpractice or non-compliant acts. The application form can be found at the following link: http://www.safe.gov.cn/safe/2021/0402/18672.html