Shanghai News China Securities Network News (reporter Fan Zimeng) On September 29, the State Administration of Foreign Exchange issued 10 typical cases of bank violations, pointing to false and deceptive foreign exchange transactions, and passing out the regulatory guidance of compacting the audit responsibility of the bank exhibition industry and maintaining the healthy order of the foreign exchange market.
According to the public information combing, the 10 typical cases of this notification are illegal handling of capital outflow business cases, involving cross-border guarantees, overseas direct investment, trade in goods, trade in services and other businesses handled by 10 banks.
Among them, millions of tickets are frequent, and there are also tens of millions of tickets. For example, in March 2017, the Hainan Branch of the China Development Bank failed to fulfill its audit responsibility and illegally handled the domestic guarantee foreign loan business, and was fined 42.661,600 yuan; From April to June 2018, the Tianjin Hexi Branch of China Construction Bank failed to fulfill its audit responsibilities and illegally handled offshore transfer and foreign exchange payment business, and was fined 1.8361 million yuan.
Cracking down on illegal activities in the foreign exchange field is a key measure to strengthen the supervision of the foreign exchange market and maintain the healthy order of the foreign exchange market. "In order to further improve the compliance level of banks' foreign exchange business and strengthen warning education, this batch of typical cases of bank violations have been notified." The person in charge of the relevant department of the Foreign Exchange Administration told the Shanghai Securities News.
According to the Regulations of the People's Republic of China on Foreign Exchange Control and relevant foreign exchange control laws and regulations, when handling foreign exchange settlement and sale and foreign exchange receipts and payments, financial institutions shall follow the principle of "understanding the customer, understanding the business, and due diligence", verify the customer's background, understand the purpose and nature of the transaction, and conduct a reasonable review of the authenticity of the transaction documents and the consistency with foreign exchange receipts and payments. Report problem business in time.
The person in charge said that at present, bank violations are mainly reflected in illegal handling of foreign exchange funds and settlement and sales of foreign exchange, illegal provision of cross-border guarantees and other businesses. In 2021, foreign exchange inspection departments fined banks 178 million yuan for various foreign exchange violations in accordance with the law.
Financial institutions are an important part of the foreign exchange market and play a key role in promoting the healthy and stable operation of the foreign exchange market. Some insiders told reporters that banks should adhere to the exchange rate risk management principle of "preserving value" rather than "adding value" as the core, effectively change from traditional directional proprietary trading to risk-neutral capital intermediary trading, and strengthen the management measures of foreign exchange business investment strategy, investment direction, risk control and other aspects. Neither can help enterprises "speculate", nor should they "speculate", and jointly build a professional and standardized foreign exchange market.
However, in the current foreign exchange market, there are still a few enterprises to follow the trend of "speculation", financial institutions illegal operations and other phenomena. For these violations, the recently held national foreign exchange market self-discipline mechanism video conference stressed that guidance and correction should be strengthened. The meeting required that quotation banks should effectively safeguard the authority of the central parity of the RMB exchange rate; Banks themselves should reasonably carry out proprietary trading based on the risk-neutral principle to provide real liquidity to the market; Member units should further strengthen the publicity and guidance of risk neutrality of enterprises and financial institutions, and further improve the service level to help enterprises avoid risk; Relevant departments should strengthen supervision and management, monitoring and analysis, strengthen expectation management, and curb speculation.
Focusing on the next step, the person in charge of the above relevant departments said that the Administration of Foreign Exchange will strengthen the supervision and inspection of foreign exchange while improving the level of trade and investment facilitation, and effectively safeguard the national economic and financial security.
The person in charge said that it will pay close attention to the changes in the situation of cross-border capital flows, increase the off-site monitoring and inspection of key subjects, key channels and key businesses, and strictly and quickly investigate and punish false and deceptive transactions. At the same time, we will investigate illegal foreign exchange cases such as underground banks and cross-border gambling on a case-by-case basis, and resolutely investigate and punish financial institutions that provide cross-border channels or services for illegal financial activities with a "zero tolerance" attitude.
In addition, while preventing risks, the SAFE will also guide banks to further implement foreign exchange facilitation policies, create a good business environment, and allow more law-abiding market players to truly enjoy better services.
Source: China Securities Network
