The Administrative Rules for RMB Bank Settlement Accounts of Overseas Institutions (hereinafter referred to as the “Rules”) are hereby released and related matters are notified:
1. Where an overseas central bank (monetary authority) needs to open a RMB bank settlement account in a domestic commercial bank for the purpose of currency swap and etc., the matter shall be handled according to other relevant provisions of the PBC.
Where an overseas bank needs to open a RMB interbank current account in a domestic commercial bank for the purpose of providing clearing or settlement services, the matter shall be handled according to relevant provisions of the Rules for Implementing the Administrative Rules for Pilot RMB Settlement of Cross-border Trade (PBC Document No.212 [2009]).
Where a qualified foreign institutional investor needs to open a RMB special account for the purpose of making securities investment in China, the matter shall be handled according to Article 20 of the Administrative Rules for RMB Bank Settlement Accounts (PBC Decree No.5 [2003]) and Article 5 of the Rules for Implementing the Administration Rules for RMB Bank Settlement Accounts (PBC Document No.16 [2005]).
Where an overseas central bank or monetary authority, RMB business clearing banks in Hong Kong or Macau, overseas banks participating in the RMB settlement for cross-border trade need to open accounts to invest in the interbank bond market with RMB funds, the matter shall be handled according to relevant provisions of the PBC on the pilot investment of overseas institutions in the interbank bond market.
2. From the date of issuance of this Notice, the opening of RMB bank settlement account other than the aforesaid four kinds of RMB bank settlement account by an overseas institution in China shall be handled according to the Rules.
Where an overseas institution has opened a RMB bank settlement account in China according to relevant provisions of the PBC prior to the issuance of the Rules, it need not alter or close its account.
3. All domestic banks shall, in accordance with the Rules, formulate the detailed implementation rules or operating guidelines on opening RMB bank settlement accounts for overseas institutions, and file them with the PBC for recordkeeping.
4. PBC Shanghai Head Office, all PBC branches and operations offices, and all PBC provincial capitals shall forward this Notice to banking institutions within their respective jurisdictions, and ensure effective implementation of the Rules.
Problems in the implementation of the Rules and the Notice shall be reported to the PBC Headquarters in a timely manner.
Contact person: Yang Qing; Tel: 010-66194067.
Annex: The Administrative Rules for RMB Bank Settlement Accounts of Overseas Institutions
People's Bank of China, August 31, 2010
Annex:
Administrative Rules for RMB Bank Settlement Accounts of
Overseas Institutions
Article 1 To regulate overseas institutions’ opening and using of RMB bank settlement accounts, strengthen the administration of bank settlement accounts, and safeguard economic and financial order and stability, the Rules are formulated in accordance with the Administrative Rules for RMB Bank Settlement Accounts (PBC Decree No.5 [2003]) and other regulations.
Article 2 The Rules shall apply to RMB bank settlement accounts opened by overseas institutions in banking institutions incorporated in Chinese Mainland (hereinafter referred to as the “bank settlement accounts”), except for RMB bank settlement accounts opened by overseas central banks (monetary authorities) in banking institutions incorporated in Chinese Mainland, nostro/vostro accounts opened by overseas commercial banks in banking institutions incorporated in Chinese Mainland for the purpose of providing clearing or settlement services, RMB special accounts opened by qualified foreign institutional investors for the purpose of making securities investment in China according to the law and RMB special accounts opened by overseas institutions for RMB funds to be invested in the interbank bond market in China.
Article 3 In the Rules, overseas institutions refer to the institutions that are incorporated outside Chinese Mainland (including in Hong Kong, Macao and Taiwan regions). Banking institutions incorporated in Chinese Mainland (hereinafter refer to as the “banks”) refer to the domestic and foreign-funded banks that are legally eligible for conducting domestic and overseas settlement and other businesses.
Article 4 To legally handle RMB fund receipts and payments, an overseas institution may apply to open a bank settlement account in a bank to carry out various cross-border RMB businesses according to the law.
Article 5 The PBC is the supervisory authority of bank settlement accounts, and is responsible for supervising and administering the opening, using, alteration, and closing of bank settlement accounts.
Article 6 A bank shall effectively distinguish between and separately manage the domestic and foreign currency accounts of overseas institutions, as well as the bank settlement accounts of overseas institutions and domestic institutions. When assigning an account number to a RMB bank settlement account of an overseas institution, a bank shall uniformly add a prefix “NRA” before the account number.
Article 7 A bank shall strictly implement the anti-money laundering regulations, and strengthen monitoring of capital flows of bank settlement accounts of overseas institutions.
Article 8 An overseas institution shall, when applying to a bank for opening a bank settlement account, fill out an application form for opening an account, and provide certificates proving that it is an institution legally incorporated and registered overseas, laws, regulations and rules or approval documents of competent authorities and other documents based on which it carries out activities in China. Where the certificates and other documents are not in Chinese, the corresponding Chinese versions shall be provided at the same time.
The bank shall examine the authenticity and legality of the identity of the overseas institution and the documents provided by it for the application of opening an account.
Article 9 An overseas institution that meets the requirements for opening a bank settlement account may choose any bank within China to open a bank settlement account. The bank shall submit corresponding documents and application forms for opening an account to the local branch office of the PBC, provide a certificate on identity examination of the overseas institution, and go through the procedures of opening a basic deposit account for the overseas institution after being approved by the local branch office of the PBC upon verification.
Article 10 The branch office of the People's Bank of China shall, within two business days, examine the authenticity of identity certificates of the overseas institution submitted by a bank, and issue a permit for opening a basic deposit account for an overseas institution eligible for opening an account.
Article 11 The account name of a bank settlement account opened by an overseas institution shall be the full Chinese or English name of the overseas institution, exactly the same with the name on the certificate proving that it is an institution legally incorporated and registered overseas (or the corresponding Chinese version), and an overseas institution shall have a sole full Chinese (or English) name.
Article 12 Where an overseas institution, which has applied for and obtained a special institution code according to the relevant provisions of the foreign exchange administrative authority of the state, applies for opening a bank settlement account, its special institution code shall be entered into the RMB Bank Settlement Account Management System. Where an overseas institution applies for and obtains a special institution code after opening an account, the bank shall make a timely application to the local branch office of the PBC to alter account information of the overseas institution.
Article 13 An overseas institution opening a bank settlement account shall provide specimen signature and seal to the bank, which shall be its official seal or special seal for financial use and the signature and seal of the person authorized to sign on the account or if there is no official stamp or special seal for financial use, may be the signature and seal of the person authorized to sign on the account.
Article 14 The bank settlement account of an overseas institution shall not be used for cash business, except for those approved by the PBC when necessary.
The funds in the bank settlement account of an overseas institution shall not be converted into foreign currencies, except for those explicitly stipulated.
Article 15 A bank shall, according to the relevant provisions, submit the information of the opening, alteration and closing of bank settlement accounts of overseas institutions as well as fund settlements, receipts and payments therein to the Cross-border RMB Receipts and Payments Information Management System.
Article 16 The alteration of the bank settlement account of an overseas institution shall, be governed by the relevant provisions of the Administative Rules for RMB Bank Settlement Accounts and the Rules for the Implementation of the Administrative Rules for RMB Bank Settlement Accounts (PBC Document No.16 [2005]).
Article 17 An overseas institution shall close the RMB settlement account promptly if one of followings occurs:
1. The regulations and rules or the approval documents of competent authorities, based on which the overseas institution has applied to open the RMB settlement account, prescribe a time limit and have expired;
2. The competent authorities prohibit the overseas institution from continuing to carry out the relevant activities in China;
3. The legal entity status of the overseas institution is revoked under the law of the host country or region of the overseas institution; or
4. Other circumstances leading to the closing of the bank settlement account.
Where an overseas institution fails to go through the account closing procedures in a timely manner, the bank shall give a notice to the overseas institution and require it to complete the procedures within 30 days from the date of issuance of the Notice; and if the overseas institution fails to do so within the specified time limit, it shall be deemed to have voluntarily closed the account, and the funds not yet transferred out of the account shall be treated as funds in a dormant account.
Article 18 A bank shall designate persons to be in charge of examining and managing the opening, using, alteration and closing of bank settlement accounts of overseas institutions, examining the depositors' application documents for opening accounts, submitting in a timely manner the information of the depositors’ opening and cancellation of accounts according to the provisions of the Rules, establishing a sound account opening and closing registration system and the management files of bank settlement accounts of overseas institutions, and managing the files separately as accounting books.
Article 19 A bank shall conduct annual review of the existing bank settlement accounts of overseas institutions.
Article 20 Matters not included in the Rules shall be governed by the Administrative Rules of RMB Bank Settlement Accounts, the Rules for the Implementation of the Administrative Rules of RMB Bank Settlement Accounts and other relevant regulations.
Article 21 The Rules shall enter into effect on October 1, 2010, and the PBC shall be responsible for the interpretation and amendment of the Rules.
