The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government, the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks,

In order to facilitate the settlement of cross-border e-commerce, promote the healthy development of foreign exchange business of payment institutions and prevent risks from foreign exchange payment, the SAFE formulated the Measures for the Administration of Foreign Exchange Business of Payment Institutions (“the Measures”, please see the Appendix) based on summarizing the pilot experience of cross-border foreign exchange payment business of payment institutions. Relevant issues are notified as follows:

I. Payment institutions that participated in the pilot program on cross-border foreign exchange payment business before the implementation of the Measures shall, within three months from the implementation date of the Measures, conduct directory registration with the branches and foreign exchange administration departments of the SAFE (“the SAFE branches”) at the place of registration in line with the requirements of the Measures.

II. Banks may, with reference to Article 12 of the Measures, apply to provide settlement and sales of foreign exchange and relevant fund receipt and payment services to cross-border e-commerce operators and consumers who purchase goods or services by presenting electronic transaction information, provided that the banks meet the requirements on transaction information collection and authenticity verification.

III. In order to ensure the smooth transition of pilot business of payment institutions on cross-border foreign exchange payment, each SAFE branch shall accurately convey the policy requirements to the payment institutions within its jurisdiction, make scientific deployment of personnel and properly perform all kinds of work for implementation of the Measures.

IV. This Circular shall come into force as of the date of promulgation. In case of any inconsistency between the previous provisions and this Circular, this Circular shall prevail. The Circular of the State Administration of Foreign Exchange on the Implementation of the Pilot Program of Cross-border Foreign Exchange Payment Business through Payment Institutions (Huifa No.7 [2015]) will be abolished.

Upon receipt of this Circular, the SAFE branches should immediately forward it to the central sub-branches (sub-branches), local commercial banks, and foreign banks within their respective jurisdiction, and all designated Chinese-funded foreign exchange banks should promptly forward it to their branches.

Appendix: Measures for the Administration of Foreign Exchange Business of Payment Institutions

State Administration of Foreign Exchange

April 29, 2019