Laws of the People's Republic of China

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Submitting the Statements Under the Measures for Administration of the Reports on Transactions of Large-Sum and Doubtful Foreign Exchange Capital of Financial Institutions

HuiFa [2003] No. 42

March 18, 2003

The branches of the State Administration of Foreign Exchange ("SAFE") and departments of foreign exchange in all provinces, autonomous regions, and municipalities directly under the Central Government, the branches in the cities of Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo of the SAFE, the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, the Construction Bank of China, the Bank of Communications of China, the State Development Bank, the Import and Export Bank of China, the Agricultural Development Bank of China, the CITIC Industrial Bank, the Everbright Bank of China, Hua Xia Bank, Guangdong Development Bank, Shenzhen Development Bank, the Merchants Bank, the Industrial Bank, Shanghai Pudong Development Bank, China Minsheng Bank:

With a view to ensuring the smooth implementation of Decree [2003] No. 3 of the People's Bank of China, Measures for Administration of the Reports on Transactions of Large-Sum and Doubtful Foreign Exchange Capital of Financial Institutions (hereinafter referred to as the Administration Measures), the SAFE has according to the Principles for Submission of the Statements under the Administration Measures (see Attachment 1) formulated four Statements required to be filled in by financial institutions for performing anti-money-laundry functions (see Attachment 2) and provided for the indicators for the Statements, the codes of the reporting and identification standards and the transmission of electronic Statements (see Attachment 3 through 5). Here is to notify you of the relevant requirements:

I.

The financial institutions shall according to the provisions of the Administration Measures submit the transactions of large-sum and doubtful foreign exchange capital by paper-based statements and electronic statements as of April 1.

II.

The SAFE shall according to the requirements of Attachment 1 through 4 to this Circular formulate the statements under the Administration Measures into electronic template documents, and send them to its branches through the internal electronic information transmission system. Upon receipt of the electronic template documents, the branches shall timely transfer this Circular (including its Attachment ) and the electronic template documents to Chinese and foreign-invested banks (including the head offices of Chinese-invested banks) and urban commercial banks, urban credit cooperatives, rural credit cooperatives and rural commercial banks in their jurisdictions.

III.

The financial institutions shall in strict accordance with the provisions of the Administration Measures and this Circular fill in the statements carefully, guarantee the quality of the data in the statements and timely and accurately submit the paper-based statements and the electronic statements. In case of any business problems occurred in work, please do not hesitate to contact with the Administrative and Examination Department of the SAFE; and in case of any technological problems, please do not hesitate to contact with the Information Center of the SAFE. The contact telephones are:

Administrative and Examination Department Anti-Money-Laundry Control Office: Lu Zheng by 68402106

Information Center Network Engineering Office: Wei Kun by 68402022

Information Center Application Development Office: Zhu Yong by 68402026

Attachment:

1. Principles for Submission of the Statements under the Measures for Administration of the Reports on Transactions of Large-Sum and Doubtful Foreign Exchange Capital of Financial Institutions

2. Statements under the Measures for Administration of the Reports on Transactions of Large-Sum and Doubtful Foreign Exchange Capital of Financial Institutions (omitted)

3. Descriptions on the Indicators for the Statement under the Measures for Administration of the Reports on Transactions of Large-Sum and Doubtful Foreign Exchange Capital of Financial Institutions.

4. Codes of the Reporting and Identification Standards under the Measures for Administration of the Reports on Transactions of Large-Sum and Doubtful Foreign Exchange Capital of Financial Institutions

5. Descriptions on the transmission of electronic Statements

Attachment 1:Principles for Submission of the Statements under the Measures for Administration of the Reports on Transactions of Large-Sum and Doubtful Foreign Exchange Capital of Financial Institutions

I.

Submitting subjects:

The financial institutions and its branches and sub-branches, and the branches of the State Administration of Foreign Exchange ("SAFE") in all provinces, autonomous regions, and municipalities directly under the Central Government and its sub-branches in prefectures, cities and counties where there are top-level corporate financial institutions are the submitting subjects.

The first-level branches and sub-branches in the capital cities of the provinces, autonomous regions, and municipalities directly under the Central Government set up by the financial institutions are the principal submitting institutions, and in case no first-level branches and sub-branches are set up in the capital cities of the provinces, autonomous regions, and municipalities directly under the Central Government by the financial institutions, the headquarters of the financial institutions shall designate the principal submitting institution.

The top-level corporate financial institutions set up in the prefectures, cities and counties shall perform their reporting functions and obligations to the local branches, which shall be summarized by local branches before consolidated reporting to the branches of the provinces, autonomous regions, and municipalities directly under the Central Government

II.

Submission procedures and time schedule:

The Administration Measures has provided for the principles territorial jurisdiction and double-way submission.

The branches and sub-branches of the financial institutions shall summarize the transactions of the large-sum and doubtful foreign exchange capitals of the last month within the first five working days of each month, which should be submitted to the principal submitting institutions by levels, and to the local branches and sub-branches of the SAFE at the same time.

Each principal submitting institutions shall summarize the transactions of the large-sum and doubtful foreign exchange capitals of the last month in each province, autonomous region and municipalities directly under the Central Government within the first fifteen working days of each month, which should be submitted to the branch of the corresponding province, autonomous region and municipalities directly under the Central Government, and to the headquarters of each corresponding financial institutions.

The headquarters of each financial institution shall within the first five working days of each month submit the transactions of the large-sum and doubtful foreign exchange capital incurred to itself of the last month to the local branches or sub-branches and shall summarize all the transactions of the large-sum and doubtful foreign exchange capitals incurred in its whole jurisdiction of the last month before submitting to the SAFE within the first working 20 days of each month.

The financial institutions shall verify and analyze the transactions of the large-sum and doubtful foreign exchange capital and in case of finding any suspected crimes, reports thereof should be made to the local public security organ within three days and to the local branches or sub-branches of the SAFE.

The branches of the SAFE in the provinces, autonomous regions, and municipalities directly under the Central Government shall within the first 20 days of each month submit the summaries of the transactions of the large-sum and doubtful foreign exchange capital reported by the financial institutions to the SAFE; and any transactions of foreign exchange capital involved in suspected crimes should be transferred to the local public securities and submitted to the SAFE at the same time.

III.

Means of submission:

In case of the acts relating to the transactions of the large-sum and doubtful foreign exchange capital provided for in Article 8 through 10 in the Administration Measures, the financial institutions shall fill in and submit Statement 1, Statement 2 and Statement 3 each month respectively in the forms of paper-based documents and electronic files.

In case of any suspected money laundry found in verifying the transactions of foreign exchange capital as provided for by Articles 12 through 3 in the Administration Measures, the financial institutions shall timely fill in and submit the paper-based Statement 4 together with the relevant Attachment attached. Attachment 3:Descriptions on the Indicators for the Statement under the Measures for Administration of the Reports on Transactions of Large-Sum and Doubtful Foreign Exchange Capital of Financial Institutions

I.

"Summarizing and submitting unit", "submitting unit" and "code of submitting unit"

"Summarizing and submitting unit" and "submitting unit" should be filled in with the full name (as per the specimen seal impression) of the financial institutions and their branches and sub-branches undertaking the foreign exchange business (hereinafter referred to as the financial institutions), and the summarizing and submitting units refer to the financial institutions that summarize the data information of their branches and sub-branches and directly make reports to the SAFE. The code of the submitting unit shall be filled in as per the identity code (12 digits) of the financial institutions in the submission of the international payments. The financial institutions without identity codes shall submit the data to the superior branches for filling and submission. The basic units of the financial institutions that summarize, fill in and submit the transactions of large-sum and doubtful foreign exchange capital are the sub-branches in prefectures, cities and counties.

II.

Enterprise

Enterprises refer to enterprise and institutional units (including foreign-invested enterprises), state organs, social communities, military units, and other domestic institutions in the territory of the PRC, foreign units assigned to China, as well as institutions outside China with occurrence of conversion of foreign exchanges or payments of foreign exchanges with the offshore accounts in the territory of the PRC or with occurrence of conversion of foreign exchanges or payments of foreign exchanges with the onshore accounts in the territory of the PRC.

III.

Name of enterprise

To be filled in as per the full name registered by the enterprises with the administration of commerce and industry and other administrative authorities in country where it is located, or as per the name indicated on the valid certificates that includes its accurate, complete ad standard name or on the approval document and certification of the competent authorities. Institutions outside China shall fill in the standard full name in Chinese and English at the same time in the format of "name in Chinese (and name in English)".

IV.

Enterprise code

To be fill in as per the 9-digit organizational and institutional code (GB code) promulgated by the National Administrative Center of Organizational and Institutional Codes of China State General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), whereby the English letter should be in capital, and with the short line of "�" deleted, for instance, the original code of "25186820�X" would be written as "25186820X".

V.

Date of occurrence of transactions

In the format of "yyyy/mm/dd", among which "yyyy' refer to year, "mm" refers to month, and "dd" refers to day, and in case the month or the day is less than two digits, 0 would be added before the actual number of the month or the day. For instance, January 1, 2003 would filled in as "2003/01/01".

VI.

Code of reporting or identification standards

There are 60 items corresponding to the reporting standards of the transactions of the large-sum foreign exchange capital and the reporting and identification standards of the transactions of the doubtful foreign exchange capital under the Administration Measures, which are provided for fixed 4-digit codes accordingly (see Attachment 4), and the financial institutions shall fill in the fixed codes according to the content of the actual transactions.

VII.

Code of transactions

To be filled in as per the transaction codes of the monitoring system of international payments statistics.

VIII.

Payments of capital

Incomes of foreign exchange capital would be filled in as "1", and payment thereof should be filled in as "0".

IX.

Bank account

The A/C number opened at banks by the enterprises according to law, including the number of offshore accounts.

X.

Transaction currencies and transaction volume

The transaction currencies should be filled in as the code of such currencies based on national standards (Abbreviation in English as 3-digit capital letters) , and the transaction volume should be filled in the corresponding forms in the original currency and conversion of USD. The conversion ratio shall adopt that of the month of filling and submission of the statement.

XI.

Transaction direction

Cross-border flow of the foreign exchange capital should be filled in with the national or regional code where the counterpart is located (Abbreviation in English as 3-digit capital letters) based on national standards; and domestic transaction of capital requires for filling in the code of the special economic zones, and the codes of special economic zones are as follows: general trade zone (Z00), bonded zone (Z01), processing zone (Z020), and diamond exchanges (Z03).

XII.

Name and individual name

For residents, full name should be filled in as per the ID cards; and for non-residents, full name of the individual should be filled in as per the passports.

XIII.

Nationality

According to the national standards, filled in with the national (regional) codes (Abbreviation in English as 3-digit capital letters).

XIV.

ID number

To be filled in with the ID card number of residents, number of the certificate of military officers, number of children on the household register and the number of the passports of non-residents.

XV.

Number of bankcards or the number of saving account of foreign currency

When holding bank cards, to be filled in with the bank cards; when having the saving account of foreign currency, to be filled in with the number of the saving account of foreign currency; when having both the bank cards, both numbers should be filled in with the number of bank cards before and separated with "£ü" from the number of the saving accounts of foreign currency.

XVI.

Responsible person, undertakers and contact telephone

The responsible person should be filled in with the personnel in charge of the anti-money laundry department of the filling and submitting units; the undertaker should be filled in with the person filling in and submitting the forms; and the contact telephone number refers to that of the undertaker.

XVII.

Seal

For the "filling and submitting unit (seal)" in Statements 1 through 4, it refers to the seal of the anti-money laundry department of the filling and submitting units). The "transferring unit (seal)" and the "receiving unit (seal)" in Statement 4 refer to the seal of the anti-money laundry departments of the transferring unit and the receiving unit.

XVIII.

Legal representative and address

The legal representative refers to the full name of the legal representative registered with the administrative department of commerce and industry and the address refers to that registered with the administrative department of commerce and industry.

XIX.

Contact person and contact telephone.

For the "contact person" in Statement 4, the full name of the relevant persons of the unit involved in the suspected circumstance or the full name of the individual involved in the suspected circumstances may be filled in, and for the contact telephone, the telephone of that person or that individual shall be filled in.

XX.

Transferring person. Receiving person and contact telephone

For the transferring person, the full name of the person of the administrative department of foreign exchange or the financial institution who transfers the relevant materials to the public security department shall be filled in, for the receiving person, the full name of the person of the public security department who receives the relevant materials to the administrative department of foreign exchange or the financial institution shall be filled in, and for the contact person, the telephone of that transferring person or receiving person shall be filled in.

XXI.

Total

Each statement shall summarize the sums of the "codes of the reporting standard or the identifying standards" and at the same time, the amount of the "transaction volume (conversion into USD)" shall be summarized.

XXII.

Remarks

Other circumstance to be supplemented and described.

Attachment 4:Codes of the Reporting and Identification Standards under the Measures for Administration of the Reports on Transactions of Large-Sum and Doubtful Foreign Exchange Capital of Financial Institutions

Item 1 of Article 8 £¨0801£©, Item 2 of Article 8 (0802);

Item 1 of Article 9 £¨0901£©, Item 2 of Article 9 £¨0902£©;

Item 3 of Article 9 £¨0903£©, Item 4 of Article 9 £¨0904£©;

Item 5 of Article 9 £¨0905£©, Item 6 of Article 9 £¨0906£©;

Item 7 of Article 9 £¨0907£©, Item 8 of Article 9 £¨0908£©;

Item 9 of Article 9 £¨0909£©, Item 10 of Article 9 £¨0910£©;

Item 11 of Article 9 £¨0911£©, Item 1 of Article 10 £¨1001£©;

Item 2 of Article 10 £¨1002£©, Item 3 of Article 10 £¨1003£©;

Item 4 of Article 10 £¨1004£©, Item 5 of Article 10 £¨1005£©;

Item 6 of Article 10 £¨1006£©, Item 7 of Article 10 £¨1007£©;

Item 8 of Article 10 £¨1008£©, Item 9 of Article 10 £¨1009£©;

Item 10 of Article 10 £¨1010£©, Item 11 of Article 10 £¨1011£©;

Item 12 of Article 10 £¨1012£©, Item 13 of Article 10 £¨1013£©;

Item 14 of Article 10 £¨1014£©, Item 15 of Article 10 £¨1015£©;

Item 16 of Article 10 £¨1016£©, Item 17 of Article 10 £¨1017£©;

Item 18 of Article 10 £¨1018£©, Item 19 of Article 10 £¨1019£©;

Item 20 of Article 10 £¨1020£©, Item 21 of Article 10 £¨1021£©;

Item 2 of Article 12 £¨1202£©, Item 3 of Article 12 £¨1203£©;

Item 1 of Article 13 £¨1301£©, Item 2 of Article 13 £¨1302£©;

Item 3 of Article 13 £¨1303£©, Item 4 of Article 13 £¨1304£©;

Item 5 of Article 13 £¨1305£©, Item 6 of Article 13 £¨1306£©;

Item 7 of Article 13 £¨1307£©, Item 8 of Article 13 £¨1308£©;

Item 9 of Article 13 £¨1309£©, Item 10 of Article 13 £¨1310£©;

Item 11 of Article 13 £¨1311£©, Item 12 of Article 13 £¨1312£©;

Item 13 of Article 13 £¨1313£©, Item 14 of Article 13 £¨1314£©;

Item 15 of Article 13 £¨1315£©, Item 16 of Article 13 £¨1316£©;

Item 17 of Article 13 £¨1317£©, Item 18 of Article 13 £¨1318£©;

Item 19 of Article 13 £¨1319£©, Item 20 of Article 13 £¨1320£©;

Item 21 of Article 13 £¨1321£©, Item 22 of Article 13 £¨1322£©;

Item 23 of Article 13 £¨1323£©, Item 24 of Article 13 £¨1324£©.

Attachment 5:Descriptions on the Transmission of Electronic Statements

According to the requirements for submission of the electronic statements provided for by the Administration Measures, the submission channels and file names and formats of the electronic statements have been standardized as follows:

I.

Channels of transmission

1.

From commercial banks to the SAFE

After the electronic statements of the branches and sub-branches of the commercial banks have been submitted to the principal submitting institutions by level, the principal submitting institutions shall consolidate and submit then to the local branches of the SAFE, and to the head offices of the corresponding commercial banks before the head offices of the commercial bank submit them to the SAFE. The head offices of commercial banks located in Beijing Municipality shall submit the electronic statements to Beijing Foreign Exchange Administrative Department of the SAFE, which shall then submit them to the SAFE; and the head offices of commercial bank that are not located in Beijing Municipality shall submit the electronic statements to the local braches of the SAFE, and the relevant branches shall then submit them to the SAFE.

It is suggested that the commercial banks adopt the TXPT V310 (Communication platform software version V310) for submitting the electronic statements to the SAFE, and TXPT has designated the following configuration methods for this application:

The application type (apptype) of this application has been designated as "FQ10" , and the sub-application type (sub_apptype) has been designated as "00", and the mode for opening the files has adopted the binary system (1).

The commercial banks may copy a new file from the transmission configuration file of the monitoring system of the international payments statistics, correspondingly adjust the application type and sub-application types of the new file and designate the "remote path" as "/fxq/", thus forming the transmission configuration file of this application, which may be adopted for transmitting the relevant electronic statements.

The branches of the SAFE adopt the file server in the firewall DMZ zone for receiving the files, with the receiving directory designated as /fxq, and the power limits of the directory is Sybase. Thus, the branches shall add the directory of the corresponding power limits to the file serve and add a line (with the content of "FQ1000###Sybase") in the file of "/txpt/config/svcfile.sys". The business personnel of the branches of the SAFE may by use of the TXPT receive the files transmitted to the file services by commercial bank in the computer for further processing. The "application type", "sub-application type" and mode for filing opening in the TXPT receiving configuration of the PC should be adjusted the same way.

2.

From branches of the SAFE to the SAFE

The internal electronic information exchanges of the SAFE shall adopt the internal electronic information transmission system of the SAFE. The SAFE has designated as special email at fxq@inspect.safe for receipt of the electronic statements of such applications, to which the branches may send the electronic statements.

II.

File names and formats

The file name of the application electronic statements consists of 24 digits, among which digits 1 through 6 refer to local codes, digits 7 through 10 refer to bank codes, digits 11 through refer to bank sequence, digits 13 through 18 refer to codes of date in the form of "yy (year)mm(month)dd(day)", digits 19 through 20 refer to bill codes, and digits 21 through 24 refer to the bill sequence.

The local codes of digits 1 through 6 and the bank code of digits 7 through 10 adopt the codes allocated in the monitoring system of international payments statistics.

The corresponding relations of bill codes are as follows:

01� � monthly statements of the transactions of large-sum foreign exchange capital of enterprises;

02� � monthly statements of the transactions of large-sum foreign exchange capital of individual residents and non-residents;

03�� monthly statements of the transactions of doubtful foreign exchange capital; and

Other codes should be determined by the branches and sub-branches of the SAFE at their own discretion.