Safe issued new circular to increase control of the inflow of foreign exchange fund

Facing the pressure of international hot money inflows into China, the State Administration of Foreign Exchange issued 《Circular on Relevant Issues on Strengthening the Administration of Foreign Exchange Fund Inflow》(Huifa [2013] No 20) in early May.

The Circular has four major announcements:

1) Strengthen comprehensive cash management of bank settlement and link up the bank settlement limits to foreign exchange deposit and loan ratio

2) Strengthen separate management of foreign exchange receipts and payments made by trading enterprises, increase inspections on enterprises with abnormal or suspicious circumstances, and adjust relevant policy for foreign exchange receipts and payments under entrepot trade

3) Banks are required to strengthen their responsibility and strictly implement the provisions of foreign exchange administration

4) Increase foreign exchange verification and inspection; strengthen monitoring analysis and public disclosure.

The Circular also requests all levels of foreign exchange management departments enforce administration in strict accordance with the law and support complying enterprises’ normal business activities.

（Translated by Azure Group）

国家外汇管理局发布最新通知加强外汇资金流入管理

面临国际热钱流入国内的压力，国家外汇管理局发布《国家外汇管理局关于加强外汇资金流入管理有关问题的通知》（汇发[2013]20号，以下简称《通知》）。

《通知》的主要内容包括：一是加强银行结售汇综合头寸管理，将银行结售汇综合头寸限额与外汇存、贷款比率挂钩。二是加强对进出口企业货物贸易外汇收支的分类管理，加大对存在异常或可疑情况企业的核查力度，并调整转口贸易项下外汇收支相关政策。三是要求银行强化责任意识，严格执行外汇管理规定。四是加大外汇管理核查检查力度，强化监测分析和公开披露。

《通知》还要求，各级外汇管理部门严格依法行政，支持守法合规企业的正常经营活动。

(来源：国家外汇管理局)