(Promulgated by People's Bank of China on December 11, 1997)
Article 1 In accordance with the Regulation of Foreign Exchange Administration of People's Republic of China and the Regulation on Administration of Surrender, Sales of and Payments in Foreign Exchange, this regulation is legislated in an attempt to improve the administration of domestic entities' oversea foreign exchange accounts.
Article 2 Domestic entities opening, using and close overseas foreign exchange accounts shall apply to this regulation.
Article 3 The State Administration of Foreign Exchange and its branches and sub-branches (hereinafter as "SAFE") shall exercise supervision on oversea foreign exchange accounts.
Article 4 Domestic entities, which meet one of the following requirements, may apply for opening a foreign exchange account at abroad;
1. Having sporadic current proceeds at abroad to be repatriated home after collection of all and in need of an oversea foreign exchange account;
2. Having sporadic current expenditures at abroad and in need of an oversea foreign exchange account;
3. Undertaking oversea contract construction projects, and in need of an oversea foreign exchange account;
4. Issuing securities denominated in foreign currency at abroad, and in need of an oversea foreign exchange account;
5. In need of an oversea foreign exchange account due to a special business demand.
Article 5 Domestic entities shall apply to SAFE for opening an oversea foreign exchange account and present the following documents and materials;
1. An application stamped and signed by the legal representative or its deputy of the domestic entity. The application shall cover information such as reasons for opening account, currency, balance ceiling of the account, utilization, scope of receipts and payments, operating periods, intended deposit bank and its location etc.
2. A reserved copy and photo copy of its business license issued by industrial and commercial administrative department;
3. An internal management rule of oversea account;
4. Other documents and materials as required by SAFE.
Besides the foregoing documents and materials, entities in oversea contract construction businesses shall present the relevant project contract, and foreign-funded enterprises shall present the foreign exchange registration certificate of foreign-funded enterprises and a certificate of assessment of capital issued by a CPA agency which indicate all registered capital has been paid in.
Article 6 SAFE shall give a reply within 30 working days of receipts of documents and materials as required in above articles.
Article 7 After getting the SAFE's approval, domestic entities may open a foreign exchange account at abroad.
Article 8 Domestic entities shall maintain an oversea foreign exchange account in its own name, and opening an oversea account in name of an individual or other entity is prohibited without authorization of SAFE.
Article 9 When opening an oversea foreign exchanger account, domestic entities shall select a bank of good credit in a country or region where most of its foreign exchange receipts and payments take place.
Article 10 Domestic entities shall submit a record file to SAFE upon presentation of the name of the deposit bank where the oversea foreign exchange account is maintained, name of account owner etc. within 30 working days after opening the oversea foreign exchange account.
Article 11 Domestic entities making receipts in and payments from an oversea foreign exchange account shall abide by regulations of the country or region where the account is opened, and shall take a practical management measures to govern the safety of the funds in the oversea foreign exchange account.
Article 12 Domestic entities shall use the oversea foreign exchange accounts according to the receipts and payments scope, balance ceiling and operating period of the account verified by SAFE, and the entities shall not lease, lend or cross-use the oversea foreign exchange accounts.
Article 13 Domestic entities in need of making a change in the deposit bank, the receipts and payments scope, balance ceiling or operating period of the oversea foreign exchange account shall apply to SAFE in advance, and shall make a change after getting approval.
Article 14 Domestic entities shall submit a record form to SAFE upon presentation of a withdrawal advice of the oversea foreign exchange account by bank within 30 working days after he operating period become due, and the remaining funds shall be repatriated home and an account bill shall be submitted. In need of extending the operating period, the entities shall submit an application in paper 30 working days before the operating period become due, and may continue to use the account after getting approval from SAFE.
Article 15 Domestic entities shall keep a complete set of accounting documents of the oversea foreign exchange account.
Domestic entities shall submit to SAFE a photo copy of the statement of account of the previous quarter of the deposit bank within 15 working days of each quarter; and submit to SAFE an explanatory statement of funds utilization of the previous year in paper by January 30 of each year.
Article 16 In case domestic entities have one of the following activities, SAFE shall order a correction, withdraw the oversea foreign exchange account, circulate a notice of criticism, and impose a forfeit from 50,000 yuan through 300,000 yuan;
1. In violation of Article 7 and 14 of this regulation, opening or extending use of an oversea foreign exchange account without authorization;
2. In violation of Article 8, opening an oversea foreign exchange account in name of others without authorization;
3. In violation of Article 12 and 13, leasing, lending or cross-using an oversea foreign exchange account, or changing the deposit bank, the receipts and payments scope and the balance ceiling without authorization;
4. In violation of Article 5, 10, 13, 14 and 15 of this regulation, presenting mendacious documents and materials;
5. In violation of Article 10, 14 and 15 of this regulation, failing to present documents and materials to safe;
6. Other activities in violation of this regulation.
Article 17 Financial institutions opening foreign exchange account at abroad are not subject to this regulation.
Article 18 The interpretation of this regulation shall rest with SAFE.
Article 19 This regulation shall come into effect as of January 1, 1998. The Regulation on oversea foreign exchange account administration of foreign-funded enterprises promulgated by SAFE on January 7, 1989 shall be revoked at the same time.
