Interpretation Of The New Deal Of Cross Border Payment By The State Administration Of Foreign Affairs

The State Administration of foreign exchange has recently issued the "pilot guidance on cross border foreign exchange payment business of Payment institutions" (hereinafter referred to as the "guiding opinions"), and has launched a pilot project for cross-border payment of foreign exchange in Payment institutions across the country. Mr. Zheng Huadong, Mr. Qian Bao, has done some core reading for everyone according to his own experience for many years, aiming at some problems that people care about. VP

I. The Application for pilot qualification -- full liberalization.

The "guidance" adopts a list management to the payment institutions that set up cross border foreign exchange payment business. After payment institutions submit relevant application materials, they can obtain official written documents within 20 working days only after being examined by the branch of the foreign exchange bureau, and complete the registration of "list of foreign exchange and receipts and payments enterprises in foreign trade" (for goods trade only), and copy it to the State Administration of foreign exchange. And 2013 (Shanghai only). Beijing Compared with the five cities in Chongqing, Zhejiang and Shenzhen, the application of the pilot qualification has been completely liberalized, and the original 22 pilot institutions will face the challenges of many new payment institutions.

Two. About the amount of single transaction increased to $50 thousand.

The "guidance" will not exceed the equivalent value of the original trade volume of 10 thousand dollars, and the amount of trade in single trade should not exceed 50 thousand dollars equivalent to 50 thousand dollars. The increase of the single transaction limit is of great significance for promoting the development of cross-border electricity providers, and to a large extent meet the demand for small cross-border electricity suppliers with high technology content and high unit price of unmanned aerial vehicles.

Three. About payment in advance - allowing allowance for clearing accounts.

The guiding opinions stipulate that the payment institution can handle the difference in settlement when the transaction information is reduced by request. Qian Bao VP Zheng Huadong pointed out that this modification will greatly reduce the settlement cost of cross-border electricity suppliers and Payment institutions, while shortening business processing time. At present, due to the good pilot situation, the volume of transactions is growing rapidly. Under most of the operations or manual processing, the differential transaction can reduce the workload of the payment institutions and cooperative banks, and is conducive to further development of the pilot business. At the same time, we should pay attention to the two types of data such as the actual payment and the original payment.

Four. About cooperative banks no longer limit the quantity.

The guidance no longer limits the amount of the co operative bank and the reserve account, giving the payment agencies more room to operate, and is conducive to promoting Payment institutions and more banks. Cross border foreign exchange payment Pilot business.

Five, about information declaration - small sum summary input

For the cross border foreign exchange payment business with a single amount equivalent to 500 US dollars (or below), the guiding opinions require the cooperative banks to exchange individual currency and transaction nature after the Cooperation Bank, and enter the individual settlement and sale business management system in the name of the payment institution. This amendment will also greatly simplify the information reporting work of the cooperative bank and contribute to business development.

Qian Bao VP Zheng Huadong believes that, on the whole, the new version of the guidance has been combined with the supervision experience of the foreign exchange administration for more than a year, and the practical feedback from the majority of the payment agencies and the reserve fund cooperative banks, which has relaxed the regulatory requirements in many ways. Cross border Electronics Business development is a major and favorable policy. It is both an opportunity and a challenge to the institutions that have been qualified for trial and those who intend to apply for pilot qualification.