Chinese and foreign banks will be able to open domestic foreign exchange accounts for overseas institutions

Xinhua Beijing, July 13, according to the State administration of foreign exchange website said the state administration of foreign exchange recently issued the "Foreign currency account management issues related to the notice."　　According to the notice, all Chinese and foreign banks which meet the requirements within the Territory may, in accordance with the regulations, open domestic foreign exchange accounts and provide financial services to foreign institutions. The notice mainly includes the following contents: First, the unified Bank qualification.　　All Chinese and foreign banks that are eligible for domestic conditions may, in accordance with the regulations, open domestic foreign exchange accounts and provide financial services to foreign institutions. The second is to clarify the foreign exchange account opening conditions, the scope of use and management principles.　　The foreign Exchange account and the Internal revenue and expenditure of the overseas institution shall be managed according to the Cross-border transaction; the balance of funds in the foreign exchange account of the overseas institution should be included in the short-term external debt index management of the bank unless otherwise stipulated. Third, strengthen statistical monitoring and risk prevention. Banks are required to carry out a unified identification of foreign exchange accounts in foreign institutions and to include management information systems for foreign exchange accounts.　　The domestic banks shall comply with the provisions of anti-money laundering laws, administrative regulations and departmental regulations for the relevant business of foreign exchange accounts in overseas institutions. In the drafting process of the circular, the State administration of foreign exchange consulted widely and consulted the public on the government website of the Bureau, and the relevant opinions and suggestions have been fully absorbed. The notice has been implemented since August 1, 2009.