Appendix
Measures for Assessment of Banks’ Implementation of
Regulations on Foreign Exchange Administration
Article 1 To encourage banks to implement the regulations on
foreign exchange administration, promote banks to operate in
compliance with laws, and enhance the effectiveness of foreign
exchange administration, the Measures are hereby formulated in
accordance with the Regulations of the People’s Republic of China
on
Foreign
Exchange
Administration,
and
Measures
for
Administering Foreign Exchange Settlement and Sales by Banks.
Article 2 The State Administration of Foreign Exchange and its
branches and sub-branches (hereinafter referred to as “foreign
exchange authorities”) shall assess banks’ implementation of the
regulations on foreign exchange administration every year, with the
assessment period ranging from October 1 of the previous year to
September 30 of this year.
Article 3 The contents, methods, and criteria of the assessment shall
be uniformly determined by the State Administration of Foreign
Exchange (SAFE). Foreign exchange authorities shall set up
assessment teams that are to carry out specific assessment.
Article 4 Assessment content and scores:
1
(I). The general assessment indicators, which are for assessing banks'
implementation of existing regulations on foreign exchange
administration, shall come under three categories:
(1) Business compliance: 30 points, assessing whether banks have
complied with the regulations on foreign exchange administration in
relevant businesses.
(2) Data quality: 40 points, assessing whether banks have submitted
relevant data, information, and statements in a timely, accurate, and
complete way in accordance with the regulations on foreign
exchange administration.
(3) Internal control system and others: 30 points, assessing banks’
establishment, supervision and implementation of internal control
system, coordination and implementation of requirements on foreign
exchange administration, rectification of violations, and cooperation
with on-site inspection or verification.
(II). Risk-based assessment indicators, which are for assessing the
effects of implementation of foreign exchange administration work
at a certain stage, 10 points. Foreign exchange authorities will make
dynamic adjustments to the specific indicators in light of changes in
foreign exchange situations and relevant administration requirements,
and inform the banks ahead of time. The risk-based assessment
indicators are used for assessing head offices of banks (foreign
2
banks for centralized management of positions of their branches,
primary reporting banks and banks for management of short-term
external debt are deemed as head offices, the same below), and not
applicable to the banks’ branches.
(III). Separate assessment indicators for head offices of banks, which
are used to assess the businesses which are subject to the
administration by head offices, and to assess internal controls for
overall implementation of regulations on foreign exchange
administration, 25 points. These indicators shall be inapplicable to
the assessments of bank branches.
Article 5 The foreign exchange authorities shall, according to the
assessment contents and criteria set out under Article 4 of these
Measures (see Schedule 1), deduct the scores of or score each item
based on the problems identified during routine supervision. No
points shall be deducted if a bank proactively identifies and
immediately solves any problems, which have not caused any
adverse consequences.
Article 6 For previous violations found during the assessment period,
relevant inspector or verifier shall notify the assessment team
immediately after the violation is confirmed by the bank. The
assessment team shall organize relevant business departments to
record the violation and decide whether to include it in the
3
assessment results of the bank for the current period.
The assessment criteria shall be: violations committed during the
current and last assessment periods shall be included in the
assessment results of the bank for the current period, and the same
violation shall not be repeatedly entered, and violations committed
during other assessment periods shall not be included in the
assessment results of the current period.
Article 7 The assessment indicator for the business that a bank has
not launched (including risk-based indicators and separate
assessment indicators for the head office) shall not be used to assess
the performance of the bank. However, in order to maintain
comparability with the banks that have launched the business, when
the total points of the bank are calculated, an adjustment shall be
made by applying the average points in this assessment item gained
by other banks that have launched such business in the same region
as the bank’s points for this item.
The criteria for recognizing whether or not a business has been
launched shall be: if a bank obtains the qualification for launching
the business, it shall be recognized that such business has been
launched; otherwise it shall be deemed that such business has not
been launched.
Article 8 The foreign exchange authorities shall assess banks on the
4
basis of legal person and territorial jurisdiction.
(I). The State Administration of Foreign Exchange (SAFE) shall be
responsible for the assessment of the head offices of policy banks
and national commercial banks.
(II). The foreign exchange authorities at the places where the
branches of the aforesaid banks, urban commercial banks, rural
commercial banks, wholly foreign-funded banks, Chinese-foreign
joint venture banks, branches of foreign banks, and rural cooperative
financial institutions are located shall be responsible for the
assessment of such banks.
(III). The local foreign exchange authorities shall be responsible for
the assessment of banks over which foreign exchange administrative
power is decentralized.
Article 9 Summary of the calculations of the results of bank
assessment:
(I). Scores for the individual indicators for general assessment of
banks=the points earned by subordinate A × the number of its
balance-of-payment declarations + the points earned by subordinate
B × the number of its balance-of-payment declarations +……/(the
number of balance-of-payment declarations by subordinate A + the
number of balance-of-payment declarations by subordinate B +...... )
With regard to the common assessment indicators for a competent
5
governing bank and a subordinate bank, the competent governing
bank shall be regarded as a branch, and its points shall be combined
with those of other branches.
(II). Adjustment to scores of business compliance indicators under
general assessment indicators. The adjustment shall be made by
applying the ratio of the average number of balance-of-payment
declarations made by the banks within the jurisdiction to the number
of balance-of-payment declarations made by each bank during the
assessment period as the adjustment coefficient, which shall be a
maximum of 4 and a minimum of 0.25. The final deducted points
under the assessment indicators for the business regulatory
compliance of a bank = original deducted points × adjustment
coefficient.
(III). Calculating the final assessment results.
The final assessment scores of the head offices of banks =∑scores
for the individual indicators for general assessment on banks × 65%
+ scores for the risk-based assessment indicators + scores for the
separate assessment indicators for the head offices of banks.
If the head offices of banks are not within the jurisdiction of
branches of the SAFE, the ultimate assessment scores of bank
branches = ∑ (Scores for the individual indicators for general
assessment of banks).
6
Article 10 The foreign exchange authorities shall, on the basis of the
final assessment results of banks, classify the assessed banks into
five categories: A, B+, B, B-, C, and shall work out an overall
assessment report on the banks’ implementation of provisions on
foreign exchange administration.
All branches and foreign exchange administrative departments of the
SAFE shall, prior to October 31 of each year, complete the entry,
calculation, and submission of the assessment business records of
the banks within their jurisdiction through the system for assessment
of banks’ implementation of regulations on foreign exchange
administration, and prior to November 30, they shall submit to the
assessment teams of the SAFE the annual evaluation reports on the
assessment of the banks within their respective jurisdiction. The
evaluation report shall include but not be limited to the following:
basic information about implementation of regulations on foreign
exchange administration by the banks within the jurisdiction (see
Appendices 2 and 3 for the formats), the overall evaluation of banks'
implementation of regulations on foreign exchange administration
within the jurisdiction, and the major problems reflected by the
assessment.
Article 11 The foreign exchange authorities shall, prior to December
31 of each year, notify the assessed banks of the assessment results
7
and ratings for the previous year by proper means, and as the case
may be, release to the public the overall evaluation information on
the banks’ implementation of the provisions on foreign exchange
administration. The assessed banks shall submit rectification reports
to the foreign exchange authorities in combination with the annual
assessment results prior to March 31 of the next year.
Foreign exchange authorities will consider the overall assessment
ratings of banks for the purpose of regulation, and use the
assessment results as an important reference for judgment of whether
banks are qualified for early implementation of foreign exchange
administration policies.
Article 12 Foreign exchange authorities conducting the assessments
of banks shall enter the assessment information into the system of
the SAFE for the assessment of banks’ implementation of
regulations on foreign exchange administration in a timely manner,
and shall keep the corresponding operational records. The records
shall be kept for 24 months.
Article 13 In the middle of each assessment year, foreign exchange
authorities shall notify banks within their jurisdiction of the
problems found during the assessment. Banks shall immediately
formulate rectification measures in accordance with the official
notice and communicate with foreign exchange authorities
8
afterwards.
Article 14 All business departments of the SAFE shall supervise and
guide the assessment work of foreign exchange authorities at lower
levels.
Article 15 Banks that are newly established shall be assessed in the
next assessment year.
Article 16 The power to construe these Measures shall remain with
the SAFE
Appendices: 1. Contents and Scoring Criteria for the Assessment of
Banks’ Implementation of Regulations on Foreign Exchange
Administration
2. Detailed List on the Assessment of Banks’ Implementation of
Regulations on Foreign Exchange Administration
3. Summary Statement on the Assessment of Banks’ Implementation
of Regulations on Foreign Exchange Administration
9
Schedule 1 Contents and Scoring Criteria for Assessment of Banks’ Implementation of Regulations on Foreign
Exchange Administration
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
1. Whether the master accounts for domestic and
1. Where the master accounts for domestic and
Circular of the State Administration of
international foreign exchange funds are opened
international foreign exchange funds are not duly
Foreign Exchange Concerning the Printing
in accordance with the regulations;
opened, if found, 0.5 point is deducted each time;
and Distribution of the Regulations on the
2. Whether the receipts and payments through
2. Where the receipts and payments through master
Centralized Operation and Management of
master accounts for domestic and international
accounts for domestic and international foreign
Foreign Exchange Funds of Transnational
foreign exchange funds are operated in
exchange funds are not duly operated, if found, 0.5
Companies (For Trial Implementation)
accordance with the regulations;
point is deducted each time;
(Huifa No. 23 [2014])
3. Whether the quota of funds financed inward
3. Where the quota of funds financed through
and outward through external debt and outward
external debt and outward lending is not duly
lending is controlled in accordance with the
controlled, if found, 0.5 point is deducted each time;
regulations;
4. Where the authenticity of settlement and sales of
4. Whether the authenticity of settlement and
foreign exchange funds is not duly examined, if
sales of domestic foreign exchange funds is
found, 0.5 point is deducted each time;
examined in accordance with the regulations;
5. Where the master accounts for international
5. Whether the quota of deposits absorbed
foreign exchange funds are not duly utilized
through the master accounts for international
domestically, if found, 0.5 point is deducted each
foreign exchange funds is utilized domestically
time;
in accordance with relevant requirements;
6. Where the relevant documents are not duly kept for
6. Whether the banks keep the relevant materials
future reference, if found, 0.5 point is deducted each
for further reference in accordance with the
time, until the score for this item is zero.
Compliance of
foreign
Integrated
2
exchange
points
businesses of
Business (2
Business
points)
multinational
compliance
companies
(30 points)
regulations.
Compliance of
1. When handling businesses such as spot
1. Where the banks handle the spot foreign exchange
1. Article 24 and 26, Regulations of the
handling
foreign exchange settlement and sales, RMB and
settlement and sales and RMB and foreign exchange
People's Republic of China on Foreign
foreign
foreign exchange derivative business (including
derivative business (including joint handling of RMB
Exchange Administration (Decree No. 532
joint handling of RMB and foreign exchange
and foreign exchange derivative business), but have
of the State Council)
Balance of
7
payments (7
points
points)
exchange
10
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
settlement and
derivative business), whether the banks have got
not handled the approval or filing procedures with the
2. Measures for Administering Foreign
sales and other
approval or filed with the foreign exchange
foreign exchange authorities in accordance with the
Exchange Settlement and Sales by Banks
authorities and possess the basic conditions for
regulations; if found, 2 points shall be deducted each
(Decree No. 2 [2014] of the People’s Bank
handling the foreign exchange settlement and
time.
of China)
sales and other relevant businesses;
2. Where the banks are not equipped with the basic
3. Circular of the State Administration of
2. When handling RMB and foreign exchange
conditions as required to handle foreign exchange
Foreign Exchange on Printing and
derivative business (including joint handling of
settlement and sales and other relevant businesses; if
Distributing Detailed Rules for the
such business) , whether the banks carry out
found, 1 point shall be deducted each time.
Implementation of Measures for
examination of the clients’ trading background
3.Where the banks fail to conduct the examination in
Administering Foreign Exchange Settlement
in terms of authenticity and compliance;
terms of authenticity while handling RMB and
and Sales by Banks (Huifa No. 53 [2014])
3. Where the banks suspend the operation of
foreign exchange derivative business (including joint
4. Interim Measures for the Administration
foreign exchange settlement and sales business
handling of such business) for clients; if found, 1
of Foreign Currency Exchange Agencies
or make any changes to the information, such as
point shall be deducted each time;
(Decree No.6 [2003] of the People’s Bank
changing the name of the institution or the
4. Where the banks suspend operating the foreign
of China)
business address thereof during the operation of
exchange settlement and sales business or have the
5. Circular of the State Administration of
the foreign exchange settlement and sales
institution name and business address thereof
Foreign Exchange on Relevant Issues
business, whether the suspension or change is
changed during the operation of the foreign exchange
Concerning Improving Foreign Exchange
filed with the foreign exchange authorities
settlement and sales business, but do not handle the
Administration for Foreign Currency
within the prescribed time.
filing procedures in a timely manner; if found, 0.2
Exchange Agencies (Huifa No. 48 [2007])
4. Whether the banks handle the foreign
point shall be deducted each time.
6. Circular of the State Administration of
exchange collection, payment, and settlement
5. Where the banks fail to handle the foreign
Foreign Exchange on Relevant Issues
and sales for self-purpose in accordance with the
exchange collection, payment, and settlement and
Concerning Further Improving the
regulations.
sales for self-purpose thereof in accordance with the
Franchised Individual Domestic and Foreign
5. Whether the banks handle the domestic
regulations; if found, 1 point shall be deducted each
Currency Exchange Business (Huifa No. 24
acquisition business for foreign currency cards
time.
[2008])
in accordance with the regulations.
6. Where the banks fail to handle the domestic
8. Circular of the State Administration of
6. Whether the banks handle the filing for the
acquisition business for foreign currency cards in
Foreign Exchange on Regulating
foreign currency exchange agencies in
accordance with the regulations; if found, 0.5 point
Administration of Foreign Currency Cards
accordance with the regulations, and whether
shall be deducted each time.
of Banks (Huifa No. 53 [2010])
indicator
relevant
businesses
11
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
administration of authorized foreign currency
7. Where the banks fail to handle the filing for
9. Circular of the State Administration of
exchange agencies is put in place.
foreign currency exchange agencies in accordance
Foreign Exchange on Relevant Issues
7. Whether the banks handle relevant businesses
with the regulations; if found, 0.5 point shall be
Concerning the Management of Domestic
involving domestic foreign exchange accounts
deducted each time.
Foreign Exchange Accounts of Overseas
for overseas institutions in accordance with the
8. Where the banks fail to fulfill their responsibility
Institutions (Huifa No. 29 [2009])
regulations;
for managing the foreign currency exchange
10. Circular of the State Administration of
8. Whether the banks launch account opening
agencies; if found, 0.5 point shall be deducted each
Foreign Exchange on Issues Concerning the
attestation agent service for overseas branches in
time.
Joint Handling of Forward Settlement and
accordance with the regulations.
9. Where the banks fail to conduct business related to
Sales of Foreign Exchange (Huifa No. 62
the domestic foreign exchange accounts of overseas
[2010])
institutions in accordance with the regulations; if
11. Reply of the State Administration of
found, 0.5 point shall be deducted each time.
Foreign Exchange to the Request of the
10. Where the banks fail to launch the account
Bank of Communications to Launch
opening attestation agent service for overseas
Account Opening Attestation Agent
branches in accordance with the regulations; if found,
Services for Overseas Branches (Huifu No.
0.5 point shall be deducted each time.
208 [2010])
The score for this item can be deducted until zero.
1. Whether the banks open reserve accounts for
For items 1, and 2, 1 point shall be deducted for each
Circular of the State Administration of
payment institutions which are not listed in the
deal, and for item 3, 0.2 point shall be deducted for
Foreign Exchange on the Implementation of
directory, and transactions have occurred;
each deal. The score for this item can be deducted
the Pilot Program of Cross-border Foreign
2. Whether the transfer of funds in foreign
until zero.
Exchange Payment Business through
Compliance of
cross-border
foreign
exchange
Current
1
exchange reserve accounts and foreign exchange
Payment Institutions (Huifa No.7 [2015])
payment
account (12
point
settlement and sales exceed the prescribed scope
transactions
of receipts and payments;
points)
through
3. Whether the banks handle cash deposit and
payment
withdrawal for payment institutions through
institutions
foreign exchange reserve accounts.
4
Compliance of
points
foreign
1. Whether foreign exchange receipts and
For items 1- 7, 0.1 point shall be deducted for each
1. Circular of the State Administration of
payments for trade are handled for enterprises
deal, and for item 8, 0.04 point shall be deducted for
Foreign Exchange Concerning Printing and
12
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
exchange
not listed in the directory;
each deal. The score for this item can be deducted
Distributing the Provisions for Foreign
receipts and
2. With respect to foreign exchange receipts for
until zero.
Exchange Administration of Trade in Goods
payments for
exports (including trade finance loans) and
(Huifa No. 38 [2012])
trade in goods
foreign exchange payments for imports
2. Circular of the State Administration of
(including opening letters of credit), whether the
Foreign Exchange on Relevant Issues
authenticity of instruments relevant to export
Concerning Improving Foreign Exchange
and import transactions for trade and consistency
Administration under the Current Account
with foreign exchange receipts and payments for
in Areas under Customs’ Special
trade are reasonably examined according to the
Supervision (Huifa No. 22 [2013])
classification of enterprises in the directory;
3. Circular of the State Administration of
3. Whether enterprises’ foreign exchange
Foreign Exchange on Relevant Issues
receipts from trade are entered into
Concerning Improving the Foreign
to-be-inspected accounts of revenue from
Exchange Administration on the Banks'
exports in accordance with the regulations, and
Trade Financing Business (Huifa No. 44
receipts and payments through the
[2013])
to-be-inspected accounts are within the
prescribed scope;
4. Whether settlement of foreign cash into RMB
is compliant and instruments are reviewed in
accordance with the regulations;
5. With respect to foreign exchange payment,
opening letters of credit, trade finance loans for
export, or foreign exchange settlement or
transfer-out of funds in the to-be-inspected
accounts for enterprises of Type B, whether
electronic data is examined and the quota of
foreign exchange receipts and payments is
deducted accordingly;
6. With respect to foreign exchange receipts and
13
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
payments for trade which shall be registered
with foreign exchange authorities in accordance
with the regulations, whether the transactions are
handled upon the registration forms issued by
foreign exchange authorities and the utilization
of the registration forms is duly indicated;
7. Whether the examination on the authenticity
and compliance of trade finance is performed in
accordance with the regulations in order to
prevent enterprises from obtaining bank loans
with fabricated trade background;
8. Whether the indications are made in
accordance with the regulations and whole sets
of original or duplicate copies of relevant
instruments are kept.
1. Whether the banks review the relevant
For item 1, 0.1 point shall be deducted for violation
1. Circular of the State Administration of
instruments in accordance with the regulations.
in each deal, and for items 2 and 3, 0.04 point shall
Foreign Exchange on Relevant Issues
Examination of
2. Whether the banks make an indication on the
be deducted for violation in each deal. The score for
Concerning Foreign Exchange
the authenticity
relevant registration certificates or documents in
this item can be deducted until zero.
Administration of Duty-free Commodities
of the foreign
accordance with the regulations.
(Huifa No. 16 [2006])
exchange
3. Whether the banks keep the relevant
2. Circular of the State Administration of
3
business
instruments in accordance with the regulations.
Foreign Exchange on Relevant Issues
points
related to trade
Concerning Administration of Sales Agents
for Foreign Currency Travelers’ Cheque
in services,
current
(Huifa No. 15 [2004])
transfers and
3. Circular of the State Administration of
income
Foreign Exchange on Relevant Issues
Concerning Foreign Exchange
Administration of Donations by Domestic
14
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
Institutions (Huifa No. 63 [2009])
4. Circular of State Administration of
Foreign Exchange on Printing and
Distributing of the Regulations for Foreign
Exchange Administration on Trade in
Services (Huifa No. 30 [2013])
5. Announcement of the State
Administration of Taxation and State
Administration of Foreign Exchange on
Issues Concerning the Tax Record-filling for
External Payments under Service Trade and
Other Items (Announcement No. 40 [2013]
of the State Administration of Taxation and
the State Administration of Foreign
Exchange )
1. Whether the banks review the relevant
For items 1 and 2, 0.1 point shall be deducted for
1. Circular of the State Administration of
instruments in accordance with the regulations.
violation in each deal, and for items 3 and 4, 0.04
Foreign Exchange on Printing and Issuing
2. Whether the banks handle relevant foreign
point shall be deducted for violation in each deal. The
Guidelines for Foreign Exchange
exchange settlement and sales in accordance
score for this item can be deducted until zero.
Administration for Insurance Business
Compliance of
handling
foreign
1
exchange
point
receipts and
with the content approved by foreign exchange
(Huifa No. 6 [2015])
authorities.
2. Circular of State Administration of
3. Whether the banks keep relevant instruments
Foreign Exchange on Printing and
in accordance with the regulations.
Distributing of the Regulations for Foreign
4. Whether the banks record the receipts and
Exchange Administration on Trade in
payments through the foreign exchange funds
Services (Huifa No. 30 [2013])
payments for
insurance
companies
utilization account under custody
Banks'
1. Whether the banks verify the authenticity of
For items 1 and 2, 0.04 point shall be deducted for
1. Measures for the Administration of
various foreign exchange businesses such as
violation in each deal; for items 3, 4, 5, and 7, 0.3
Individual Foreign Exchange (Decree No. 3
individual foreign exchange receipts and
point shall be deducted for violation in each deal; for
[2006] of the People’s Bank of China)
1.5
compliance
points
with
15
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
regulations in
payments, foreign exchange settlement and
items 6, 8, 9, 10, and 11, 0.1 point shall be deducted
2. Circular of the State Administration of
handling of
sales, foreign exchange accounts and foreign
for violation in each deal;
Foreign Exchange on Printing and
individual
cash.
The score for this item can be deducted until zero.
Distributing the Detailed Rules on
foreign
2. Whether the banks keep relevant evidentiary
Implementation of the Measures for the
exchange
materials for further reference in accordance
Administration of Individual Foreign
businesses
with the regulations.
Exchange (Huifa No. 1 [2007])
3. Whether the banks launch e-banking for
3. Circular of the State Administration of
individual foreign exchange business without
Foreign Exchange and the General
authorization.
Administration of Customs on Printing and
4. Whether the banks launch individual foreign
Distributing the Interim Measures for
exchange business in cooperation with the
Administration of Carrying Foreign
remitting institutions, e-commerce platform and
Currency Cash into and out of China (Huifa
payment institution without authorization.
No. 102 [2003])
5. Whether the banks assist clients in illegally
4. Circular of the State Administration of
handling individual foreign exchange.
Foreign Exchange on Printing and
6. Whether the banks access the system in
Distributing the Operational Rules on
accordance with the regulations and handle
Carrying Foreign Currency Cash into and
foreign exchange settlement and sales for
out of China (Huifa No. 21 [2004])
individuals through the system in accordance
5. Circular of the General Affairs
with the business procedures.
Department of the State Administration of
7. Whether the banks handle foreign exchange
Foreign Exchange on Regulating Operations
settlement and sales for individuals through the
of Foreign Exchange Settlement and Sales
bank codes with business authority.
for Individuals by Banks (Huizongfa No. 90
8. Whether the banks conduct off-line operations
[2007])
without approval.
6. Circular of the General Affairs
9. Whether foreign exchange settlement and
Department of the State Administration of
sales for individuals which are compliant with
Foreign Exchange on Promulgating the
characteristics of split-up (including foreign
Emergency Plan for the Management
exchange settlement and sales for individuals
Information System for Foreign Exchange
16
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
through e-banking) are duly undertaken;
Settlement and Sales for Individuals
10. Whether Watch List management is
(Huizongfa No. 49 [2008])
performed in accordance with the regulations.
7. Circular of the State Administration of
Foreign Exchange on Further Perfecting
Administration of Foreign Exchange
Settlement and Sales for Individuals (Huifa
No. 56 [2009])
8. Circular of the State Administration of
Foreign Exchange on Printing and
Distributing the Interim Measures for
Administration of Foreign Exchange
Settlement and Sales for Individuals through
E-banking (Huifa No. 10 [2011])
9. Circular of the State Administration of
Foreign Exchange on Trial Implementation
of the “Watch List” Management of
Individual Splitting Foreign Exchange
Settlement and Sales by Banks Engaging in
E-Channeled-based Foreign Exchange
Settlement and Sales for Individuals (Huifa
No. 41 [2011])
Banks'
1. Whether the banks open, change, or close
Where the banks fail to conduct business related to
1. Circular of the State Administration of
compliance
foreign exchange accounts under the current
the foreign exchange accounts in accordance with the
Foreign Exchange on Retaining Foreign
account and foreign exchange accounts of
regulations; if found, 0.04 point shall be deducted
Exchange Income under the Current
insurance institutions in accordance with the
each time
Account by Domestic Institutions at their
regulations.
The score for this item can be deducted until zero.
own Discretion (Huifa No. 49 [2007])
with
1.5
regulations in
points
handling of
foreign
2. Whether an account is cross-used or used in
2. Circular of the General Affairs
exchange
excess of the scope for usage.
Department of the State Administration of
accounts
3. Whether the banks handle the foreign
Foreign Exchange on Relevant Issues
17
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
exchange accounts as prescribed and submit the
Concerning Administration of the Foreign
relevant data in accordance with the regulations.
Exchange Account under the Current
Account of Foreign Embassies and
Consulates Stationed in China (Huizongfa
No. 114 [2007])
3. Circular of the General Affairs
Department of the State Administration of
Foreign Exchange on Distributing the
Operational Rules on Foreign Exchange
Accounts under the Current Account and
Individual Foreign Exchange Purchases by
Domestic Residents (Huizongfa No. 32
[2006])
4. Circular of the State Administration of
Foreign Exchange on Adjustments of
Foreign Exchange Administration Policies
under the Current Account (Huifa No. 19
[2006])
5. Circular of the General Affairs
Department of the State Administration of
Foreign Exchange on Distributing the
Operational Rules on Foreign Exchange
Accounts under the Current Account and
Individual Foreign Exchange Purchases by
Domestic Residents (Huizongfa No. 32
[2006])
6. Circular of the General Affairs
Department of the State Administration of
Foreign Exchange on Conducting
18
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
Integration and Promotion of Application
Portal of Management Information System
for Foreign Exchange Accounts (Huizongfa
No. 87 [2013])
7. Circular of the State Administration of
Foreign Exchange on Printing and
Distributing the Measures for Foreign
Exchange Administration in Areas under
Customs’ Special Supervision (Huifa No. 15
[2013])
8. Circular of the State Administration of
Foreign Exchange on Relevant Issues
Concerning Improving Foreign Exchange
Administration under the Current Account
in Areas under Customs’ Special
Supervision (Huifa No. 22 [2013])
9. Circular of the State Administration of
Foreign Exchange on Printing and Issuing
Guidelines for Foreign Exchange
Administration for Insurance Business
(Huifa No. 6 [2015])
1. Whether account opening, account nature, the
1. Where a bank opens an account without
1. Regulations of the People's Republic of
Compliance of
scope of receipt and payment, and the time of
authorization, 0.5 point shall be deducted for each
China on Foreign Exchange Administration
foreign
service conform with those registered with the
deal; where the opening of an account does not
(Decree No. 532 of the State Council)
foreign exchange authorities (banks) or approved
conform with the requirements, 0.2 point shall be
2. Regulations for the Administration of
by the foreign exchange authorities.
deducted for each deal; where the cancellation of an
Settlement, Sales, and Payments of Foreign
2. Receipt and payment in the capital account
account is inconsistent with the requirements, 0.1
Exchange (Yinfa No. 210 [1996])
under direct investment:
point shall be deducted for each deal.
3. Regulations for the Administration of
(1) With respect to capital, domestic asset
2. With respect to capital, domestic asset realization
Domestic Foreign Exchange Accounts
Capital
4
exchange
points
business under
account (8
points)
direct
investment
19
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
realization accounts, preliminary expense
accounts, preliminary expense accounts, security
(Yinfa No. 46 [1997])
accounts, security deposits, reinvestment
deposit accounts, etc., where the foreign exchange
4. Opinions of the Ministry of Construction
accounts, overseas asset realization accounts,
settlement under direct investment is not made in
and Five Other Ministries and Commissions
etc., whether the foreign exchange settlement
accordance with the regulations, 1 point is deducted
on Standardizing the Admission and
under direct investment is consistent with
for each deal; when funds are not entered into
Management of Foreign Investment for the
relevant administration requirements; (2)
accounts within the quota registered with foreign
Real Estate Market (Jianzhufang No. 171
Whether foreign exchange funds are recorded in
exchange authorities, 0.5 point is deducted for each
[2006])
the accounts in accordance with quota
deal; with respect to liquidation, transfer of shares,
5. Measures for the Administration of
management requirements;
advance recovery of investment, etc., where the
Individual Foreign Exchange (Decree No. 3
(3) With respect to liquidation, transfer of
foreign exchange purchases and payments under
[2006]) of the People's Bank of China and
shares, advance recovery of investment, etc.,
direct investment are inconsistent with the
Their Detailed Rules on Implementation
whether the foreign exchange purchases and
information registered with or approved by foreign
(Huifa No. 1 [2007])
payments under direct investment are consistent
exchange authorities, 0.5 point is deducted for each
6. Circular of the State Administration of
with the information registered with foreign
deal;
Foreign Exchange on Issues Concerning
exchange authorities;
3. In case of erroneous remittances of overseas
Foreign Exchange Administration of
3. Overseas investments:
investments, 0.2 point shall be deducted for each
Overseas Lending Granted by Domestic
whether funds for overseas investment and
deal; with respect of overseas investments, 0.5 point
Enterprises (Huifa No. 24 [2009]).
preliminary expenses are remitted overseas
is deducted for each deal not duly registered, and 0.2
7. Regulations for Foreign Exchange
according to the foreign exchange registration
point is deducted for each deal not made according to
Administration of Overseas Direct
requirements for overseas investments and
the registration requirements;
Investments by Domestic Institutions (Huifa
information registered with foreign exchange
4. Where the banks fail to handle the outward and
No. 30 [2009])
authorities (banks); whether the unused funds for
inward remittances of funds under overseas lending
8. Provisions for the Centralized Operations
preliminary expenses are repatriated according
based on the registered information, 0.5 point shall be
and Administration of Foreign Exchange
to the foreign exchange registration requirements
deducted for each deal.
Funds of Internal Members of Domestic
for overseas investments and information
The score for this item can be deducted until zero.
Enterprises (Huifa No. 49 [2009])
registered with foreign exchange authorities
5. With respect to foreign exchange registration under
9. Circular of the General Affairs
(banks); whether overseas asset realization
direct investment, 1 point is deducted for each deal
Department of the State Administration of
accounts are duly opened for proceeds
erroneously registered, until zero.
Foreign Exchange on Relevant Issues
repatriated from overseas capital decrease,
Concerning Regulating the Operations of
20
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
transfer of shares and liquidation, and recorded
Cross-border RMB Businesses under the
according to the information registered with
Capital Account (Huizongfa No. 38 [2011])
foreign exchange authorities (banks);
10. Circular of the State Administration of
4. Overseas loans: whether the funds under
Foreign Exchange on Further Improving and
overseas loans are remitted outward and inward
Adjusting the Policies for Foreign Exchange
according to the information registered with
Administration of Direct Investments (Huifa
foreign exchange authorities;
No. 59 [2012])
5. Whether the registration of foreign exchange
11. Circular of the State Administration of
under direct investment is compliant with the
Foreign Exchange on Further Simplifying
requirements of foreign exchange authorities.
and Improving the Policies for Foreign
Exchange Administration of Direct
Investments (Huifa No. 13 [2015])
12. Circular of the State Administration of
Foreign Exchange Concerning Reform of
the Administrative Mode for Foreign
Exchange Settlement of Capital of
Foreign-Invested Enterprises (Huifa No. 19
[2015])
1. Opening and change of special accounts for
1. When an account is opened at another place
1. Regulations of the People's Republic of
external debt: whether the opening of a special
without approval, 0.5 point is deducted for each deal;
China on Foreign Exchange Administration
account for external debt in another place and
when an account is opened incompliant with
(Decree No. 532 of the State Council)
opening and closing of an account for external
requirements, 0.1 point is deducted for each deal;
2. Regulations for the Administration of
debt are consistent with relevant requirements;
when an account is closed incompliant with
Settlement, Sales, and Payment of Foreign
2. Receipts and payments through accounts for
requirements, 0.1 point is deducted for each deal;
Exchange (Yinfa No. 210 [1996])
external debt: whether each deal of external debt
2. 0.1 point is deducted for mixed utilization of
3. Regulations for the Administration of
contract registered corresponds to an external
various accounts of enterprises for external debt; 0.1
Domestic Foreign Exchange Accounts
debt account, whether funds under external debt
point is deducted for each deal erroneously or
(Yinfa No. 416 [1997])
have been deposited in the corresponding
excessively entered into accounts; 0.2 point is
4. Interim Regulations on Statistics and
accounts for external debt, whether excessive
deducted for utilization of funds under external debt
Monitoring of the External Debt (1987) and
Compliance of
2
external debt
points
and external
guarantee
21
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
funds have been entered, whether funds under
for purposes not prescribed in the contracts; 0.2 point
Detailed Rules on their Implementation
external debt are used (including foreign
is deducted for repayment of RMB debts after the
(Huizhengfazi No. 6 [1997])
exchange settlement of external debt and direct
foreign exchange settlement of funds under external
5. Measures for the Management of
external payments) for the purposes prescribed
debt; 0.5 point is deducted for pledging external debt
Registration of External Debt (Yinfa No. 19
in the contracts, whether the provision that the
for RMB loans in violation of regulations;
[2013])
funds in the special accounts for external debt
3. Where the banks, when accepting overseas
6. Circular of the State Administration of
should not be used for RMB pledge loans to
guarantees under domestic loans, handle the foreign
Foreign Exchange on Releasing the
corporate borrowers is implemented;
exchange settlement of funds for performance of
Regulations for Foreign Exchange
3. Management of overseas guarantees under
guarantees without authorization, 0.2 point is
Administration on Cross-border Guarantee
domestic loans: whether the banks handle the
deducted for each deal; 0.5 point is deducted for each
(Huifa No. 29 [2014])
contingent liabilities registration for the
deal of external repayments of principal along with
acceptance of overseas guarantees under
interest without authorization for the guaranteed
domestic loans on time; whether the banks
parties;
handle the foreign exchange settlement of funds
4. External financing guarantees provided by
for performance of guarantees without
domestic banks: Where ineligible guarantee is
authorization; whether external repayments of
provided, 0.2 point shall be deducted for each deal.
principal along with interest are made for the
The score for this item can be deducted until zero.
guaranteed parties without authorization after the
guarantees are performed but the external debt
registration is not handled;
4. External financing guarantees provided by
domestic banks: whether ineligible guarantee is
provided.
Compliance of
foreign
2
exchange
points
business for
portfolio
investment
1. The opening of a foreign exchange capital
1.The opening of a foreign exchange capital account,
1. Administrative Rules on the Foreign
account, the receipts and payments through the
the receipts and payments through the said account,
Exchange Business of Non-bank Financial
said account, and the foreign exchange
and the foreign exchange settlement and sales of
Institutions (January 1, 1993, State
settlement and sales of non-bank financial
non-bank financial institutions (excluding insurance
Administration of Foreign Exchange)
institutions (excluding insurance companies)
companies): where account opening is inconsistent
2. Circular of the State Administration of
(1) Whether the basic information is duly
with the requirements, 0.1 point shall be deducted for
Foreign Exchange on Relevant Issues
22
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
registered, filed or approved in accordance with
each deal; where the change or cancellation of an
Concerning Foreign Exchange
requirements of non-bank financial institutions
account is inconsistent with the requirements, 0.1
Administration of Fund Management
on foreign exchange business. Whether relevant
point shall be deducted for each wrong deal; as for
Companies with Foreign Shares (Huifa No.
foreign exchange accounts are opened with
foreign exchange settlement and sales, 0.2 point shall
44 [2003])
domestic banks;
be deducted for each wrong deal; as for entry in an
3. Regulations for the Administration of
(2). Whether the nature of the accounts and the
account, 0.1 point shall be deducted for each wrong
Domestic Foreign Exchange Accounts
scope of the receipts and payments conforms
deal.
(Yinfa No. 46 [1997])
with the regulations of the foreign exchange
2.The account opening, foreign exchange receipts and
4. Circular of the State Administration of
authorities.
payments, as well as the foreign exchange settlement
Foreign Exchange on Relevant Issues
(3) Whether the banks handle foreign exchange
and sales under the capital account for resident
Concerning Foreign Exchange
settlement of relevant funds and foreign
individuals: where account opening is inconsistent
Administration of Automotive Finance
exchange purchases against relevant documents
with the requirements, 0.1 point shall be deducted for
Companies (Huifa No. 72 [2004])
duly registered, filed or approved.
each deal; where the change or cancellation of an
5. Circular of the State Administration of
2. The account opening, and foreign exchange
account is inconsistent with the requirements, 0.1
Foreign Exchange on Printing and
receipts and payments, as well as the foreign
point shall be deducted for each wrong deal; as for
Distributing the Detailed Rules on
exchange settlement and sales under the capital
foreign exchange settlement and sales, 0.2 point shall
Implementation of the Measures for the
account for resident individuals
be deducted for each wrong deal; as for entry in an
Administration of Individual Foreign
(1) for domestic individual participating in
account, 0.1 point shall be deducted for each wrong
Exchange (Huifa No. 1 [2007])
equity incentive plans of overseas listed
deal.
6. Reply of the State Administration of
companies, whether the relevant foreign
The score for this item can be deducted until zero.
Foreign Exchange on Issues Concerning
exchange receipts and payments are duly
Foreign Exchange Settlement of Income
registered; whether the opening of domestic
from B-Share Investments by Domestic
accounts, foreign exchange purchases and
Individual Investors (Huifu No. 283 [2007])
outward remittance of funds are duly registered;
7. Circular of the State Administration of
whether the foreign exchange settlement and
Foreign Exchange on Relevant Issues
transfer of funds are made in accordance with
Concerning Foreign Exchange
the regulations;
Administration of Involvement of Domestic
(2). Whether the nature of the accounts and the
Individuals in Equity Incentive Plans of
scope of the receipts and payments conforms
Overseas Listed Companies (Huifa No. 7
23
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
with the regulations of the foreign exchange
[2012])
authorities;
(3). Whether the foreign exchange settlement of
income from B-shares conforms with the
regulations of the foreign exchange authorities.
Compliance of
Whether the organization codes and
1. Where the banks fail to handle relevant business in
Detailed Rules of the State Administration
application of
identification codes for financial institutions are
accordance with the regulations; if found, 0.1 point
of Foreign Exchange on Implementation of
organization
applied for and changed in accordance with
shall be deducted each time.
Management of Standardization of the
regulations
2. Where superior banks perform loosened
Information System Codes (Huizongfa No.
supervision or guidance on establishment or
131 [2011])
Technology
1
codes and
point
identification
Management
(1 point)
codes for
cancellation of its subordinates, 0.1 point is deducted
financial
each time.
institutions
The score for this item can be deducted until zero.
1. Whether the information on master accounts
1. Where the information on master accounts for
1. Article 23, 25 and 31 of the Circular of
for domestic and international foreign exchange
domestic and international foreign exchange funds
the State Administration of Foreign
funds are reported in accordance with the
are not duly reported, if found, 0.2 point is deducted
Exchange on the Issuance of the Regulations
regulations;
each time;
on the Centralized Operation and
2. Whether the balance-of-payments declaration
2. Where declaration of the balance of payments
Management of the Foreign Exchange
with respect to the centralized receipts and
statistics is not duly made, if found, 0.2 point is
Funds of MNCs (Interim) (Huifa No. 23
payments and net settlements under the current
deducted each time;
[2014])
accounts through a master account for domestic
3. Where the data on funds transfer between master
2. Circular of the State Administration of
foreign exchange funds is made in accordance
accounts for domestic foreign exchange funds and
Foreign Exchange on Doing Well the Work
with the regulations;
those for international foreign exchange funds are not
Related to Adjustments in the Domestic
3. Whether the data on funds transfer between
duly reported, if found, 0.2 point is deducted each
Banks’ Foreign-related Receipt and
master accounts for domestic foreign exchange
time.
Payment Vouchers and Preparation of the
funds and those for international foreign
The score for this item can be deducted until zero.
Relevant Information for Submission (Huifa
Accuracy,
timeliness and
completeness
of data in
master
Data
Integrated
Quality (40
Business (2
points)
points)
accounts for
1
domestic and
point
international
foreign
exchange funds
of
multinational
exchange funds are reported in accordance with
No. 49 [2011])
the regulations.
3. Circular of the State Administration of
companies
Foreign Exchange on Starting Use of
24
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
Relevant Vouchers of Domestic Banks for
Foreign-related Receipts and Payments and
Clarifying the Relevant Requirement for
Data Submission (Huifa No. 42 [2012])
4. Circular of the State Administration of
Foreign Exchange on Issuing the Standards
Version 1.0 for Collecting Data on Foreign
Exchange Transactions by Financial
Institutions (Huifa No. 18 [2014])
1
point
1. Whether the foreign exchange settlement and
1. Where the information on foreign exchange
1. Article 22 of the Circular of the State
payment data are submitted to relevant business
settlement and payments are not duly reported to
Administration of Foreign Exchange on the
information system in accordance with the
relevant business information system, if found, 0.2
Issuance of the Regulations on the
regulations;
point is deducted each time;
Centralized Operation and Management of
Accuracy,
2. Whether the information on the opening and
2. Where the information on the opening and closing,
the Foreign Exchange Funds of MNCs
timeliness and
closing, receipts, payments and balance of the
receipts, payments and balance of the accounts is not
(Interim) (Huifa No. 23 [2014])
completeness
accounts is reported in accordance with the
duly reported, if found, 0.2 point is deducted each
2. Circular of the State Administration of
of data on
regulations;
time;
Foreign Exchange on Issuing the Standards
special
3. Whether the information on the receipts and
3. Where the information on the receipts and
Version 1.0 for Collecting Data on Foreign
accounts for
payments between the accounts and other
payments between the accounts and other domestic
Exchange Transactions by Financial
RMB deposits
domestic RMB accounts is reported in
RMB accounts is not duly reported, if found, 0.2
Institutions (Huifa No. 18 [2014])
of
accordance with the regulations.
point is deducted each time.
3. Circular of the State Administration of
The score for this item can be deducted until zero.
Foreign Exchange on Doing Well the Work
multinational
companies
Related to Adjustments in the Domestic
Banks’ Foreign-related Receipt and
Payment Vouchers and Preparation of the
Relevant Information for Submission (Huifa
No. 49 [2011])
Balance of
13
The accuracy,
Whether the banks report the information in the
(I) Accuracy (9 points)
1. Regulations of the People's Republic of
payments (19
points
timeliness, and
indirect declaration of the balance of payments
1. Assessment items
China on Foreign Exchange Administration
25
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
points)
integrity of the
statistics in a timely, accurate, and integrated
(1) Misstatement, understatement, or mismatch of the
(Decree No. 532 of the State Council)
manner.
basic information and declaration information on the
2. Measures for Declaration of Balance of
declaration form for the balance of payments
Payments Statistics (Decree No. 642 of the
declaration of
statistics, including transaction code, transaction
State Council)
the balance of
postscript, currency and amount of receipts/payments
3. Circular of the State Administration of
payments
(including the amounts of spot exchange, and forex
Foreign Exchange on Printing and
statistics
settlement/purchases), name of payee/payer, ID
Distributing the Detailed Rules for the
number, account number of the receipts/payments,
Implementation of the Declaration of
name of the counterpart payee/payer, and name and
Balance of Payments Statistics through
code of the resident country (region) , date of
Banks
declaration, and method of settlement.
4. Circular of the General Affairs
(2) Misstatement, understatement, or mismatch of
Department of State Administration of
elements on the basic information form about the
Foreign Exchange on Printing and
organization, including organizational code, name of
Distributing the Operational Rules on the
organization, type of ownership, attribute of the
Online Balance of Payments Declaration
industry, resident country (region), whether it is in a
System (Huizongfa No. 122 [2010])
special economic zone, home country of foreign
5. Circular of the General Affairs
investor, domicile/place of business, and competent
Department of the State Administration of
foreign exchange authority.
Foreign Exchange on Adjusting the Content
2. Scoring standards:
of the Relevant Vouchers of Domestic
(1) By setting the average error rate of all banks
Banks for Foreign-related Receipts and
within the jurisdiction at 80 points, the banks with a
Payments (Huizongfa No. 50 [2010])
zero error rate as 100 points, and the banks with the
6. Circular of the State Administration of
highest error rate as 60 points, formulas are
Foreign Exchange on Printing and
developed as follows:
Distributing the Rules on Inspection of the
Error range 1 (error rate < average error rate) = 20/
Indirect Declaration of the Balance of
(average error rate - lowest error rate).
Payments Statistics (Huifa No. 1 [2011])
Error range 2 (error rate > average error rate) = 20/
7. Circular of the State Administration of
(highest error rate - average error rate).
Foreign Exchange on Printing and
data in the
indirect
26
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
If error rate < the average error rate, the score of the
Distributing the Circular on Specifying and
banks= 80 + (the average error rate - the error rate of
Adjusting Matters Regarding the
the banks)× error range 1
Declaration of Balance-of-Payments
If error rate > average error rate, the score of the
Statistics (Huifa No. 34 [2011])
banks = 80 + (average error rate - error rate of the
banks) × error range 2
Deducted points of the banks under this item = (100score of the banks)/100×9 (no deduction shall be
deducted for the banks with zero error rate, and 3.6
points deducted for the banks with the highest error
rate).
Final score of the banks under this item = 9 deducted points of the banks under this item (see the
explanation for details).
(2) Based on the scoring, if the amount of a single
transaction under trade in goods is found exceeding
USD30 million (inclusive) and the amount of
transactions under other items is found surpassing
USD10 million (inclusive) in the inspection, and the
error falls under the category of an incorrect
transaction code (calculated based on the conversion
rate at the time of the declaration), 0.01 point shall be
deducted for each deal.
(3) The branches of the provinces (municipalities)
that have any subordinate offices shall calculate the
final scores of all banks within their respective
jurisdiction after calculating the weighted average of
the declared amounts of the balance of payments
statistics of all banks within the jurisdiction of the
27
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
indicator
subordinate offices.
(4) The SAFE may adjust the set average error rate score
of all banks within its jurisdiction based on the real
situation.
(II) Timeliness (2 points)
1. Where the banks fail to transmit the basic
information in accordance with relevant regulations,
leading to an average annual overdue rate higher than
zero, 0.01 point shall be deducted for each additional
permillage point; if the additional rate is less than one
permillage point, the point deducted shall be
calculated based on the additional permillage point
rounded to two decimal places.
Overdue rate of basic information = number of pieces
of overdue basic information during the period of
assessment/total number of pieces of basic
information during the period of assessment.
Average annual overdue rate = the sum of the actual
overdue rates on a monthly or quarterly basis/times of
actual assessment.
2. Where the annual average overdue rate for the
number of pieces of declaration information is greater
than zero, 0.01 point shall be additionally deducted
for each additional permillage point; if the additional
rate is less than one permillage point, the point
deducted shall be calculated based on the additional
permillage point rounded to two decimal places. The
score for this item can be deducted until zero.
The overdue rate of declaration information = the
28
Main reference documents and basis
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
indicator
number of pieces of overdue declaration information
during the period of assessment/total number of
pieces of declaration information during the period of
assessment.
Annual average overdue rate = the sum of the actual
overdue rates on a monthly or quarterly basis/times of
actual assessment.
The overdue period of basic/declaration information
refers to, in accordance with the Operating Rules on
the Declaration of Balance of Payments Statistics
through Financial Institutions, the original entry date
of banks' basic/declaration information in the system
of the SAFE - date of declaration form> prescribed
days. Currently the overdue period is 2 and 7 days
respectively.
(III) Completeness (2 points)
1. Where the banks wrongly delete the declaration
form, 0.001 point shall be deducted for each wrong
deletion.
2. Where the banks are found during inspection
failing to submit the basic information or declaration
information in accordance with the regulations, or
submitting information that exceeds the scope of
indirect declaration of the balance of payments
statistics, 0.01 point shall be deducted for each deal.
3. Where the indirect declaration system of the
balance of payments statistics fails to back up the
data in accordance with the regulations, 0.3 point
shall be deducted each time; where data are lost and
29
Main reference documents and basis
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
indicator
cannot be recovered due to the banks’ failure to back
up in accordance with the regulations (force majeure
excluded), 1 point shall be deducted each time. The
score for this item can be deducted until zero.
(IV) Other
Where a bank finds an error and voluntarily makes
modification before the issuance of the inspection
results by a foreign exchange authority, no points
shall be deducted.
Notes:
The connotation of the scoring formula for the
indirect declaration of the balance of payments
statistics: By adopting a functional distribution for
calculation, the formula sets an average value (80
points), a highest value (100 points), and a lowest
value (60 points). The error range refers to the score
assigned to the error rate per unit within 20 points.
The scores of the banks are obtained by summing up
the average score and the deviation scores of the
banks (that is, the points of the banks obtained or
deducted in 20 points), and finally the scores of the
banks is converted to the deducted points to calculate
the final standard score. The average error rate (%) =
total number of errors within the jurisdiction/total
number of declaration forms within the jurisdiction ×
100 (obtained by the collection system of the indirect
declaration of the balance of payments statistics).
E.g.1: The error rate of a bank is 0.4%, the average
error rate of all banks within the jurisdiction is 0.5%,
30
Main reference documents and basis
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
and the lowest error rate within the jurisdiction is
0.1%.
Error range 1=20/ (0.5-0.1) =50, score of the
bank=80+ (0.5-0.4) ×50=85, deducted points of the
bank= (100-85)/100×9=1.35, and final score of the
bank = 9-1.35=7.65.
E.g.2: The error rate of a bank is 0.7%, the average
error rate of all banks within the jurisdiction is 0.5%,
and the highest error rate within the jurisdiction is
0.9%.
Error range 2=20/ (0.9-0.5) =50, score of the
bank=80+ (0.5-0.7) ×50=70, deducted points of the
bank= (100-70)/100×9=2.7, and final score of the
bank = 9-2.7=6.3.
1. Whether there is a failure to submit complete
1. Where the data in the statistical statement on the
1. Circular of the State Administration of
statistical reports on foreign exchange settlement
foreign exchange settlement and sales are not
Foreign Exchange on Printing and
and sales:
correctly classified in accordance with the item
Distributing the Statistical System on
The accuracy,
(1) missing reports on newly admitted
setting, if found, 0.05 point shall be deducted each
Foreign Exchange Settlement and Sales of
timeliness, and
institutions;
time.
Banks (Huifa No.42 [2006])
(2) missing reports on the sub-items, such as
2. Where erroneous statistics or omissions in the
2. Circular of the General Affairs
missing reports on the foreign exchange
reporting of the foreign exchange settlement and
Department of the State Administration of
settlement and sales of capital on behalf of
sales are found in the ex post inspection, 0.05 to 0.1
Foreign Exchange on Relevant Issues
clients and for self-purposes;
point shall be deducted each time.
Concerning Including RMB Purchase and
(3) the data in the foreign exchange settlement
3. Where the banks fail to transmit the integrated data
Sales in the Foreign Exchange Settlement
and sales statement are inconsistent with the
on foreign settlement and sales to the foreign
and Sales Statistics (Huizongfa No. 99
statistical data in the financial statements of the
exchange authorities via the network within the
[2010])
banks.
prescribed time, 0.1 point shall be deducted for every
3. Circular of the State Administration of
2. Whether the banks report the statistical data
half-day delayed.
Foreign Exchange on Further Strengthening
on foreign exchange settlement and sales to the
4. For cases where the foreign exchange authority
the Verification of Balance of Payments
completeness
of the statistical
6
data on the
points
banks’ foreign
exchange
settlement and
sales
31
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
foreign exchange authorities within the
makes special inquiries, 0.5 point shall be deducted
(Huifa No. 47 [2011])
prescribed time (the time requirement in the
for failure to provide feedback each time, 0.05 point
4. Circular of the State Administration of
document is the time requirement of the SAFE
shall be deducted for each half-day delayed if the
Foreign Exchange on Relevant Issues
for the branches, and all branches may, on this
feedback is not provided in a timely manner, and 0.2
Concerning Further Regulating
basis, make detailed rules of the banks within
point shall be deducted for each time there is
Administration on the Statistics of Banks'
their respective jurisdictions on the data
inaccurate feedback.
Foreign Exchange Settlement and Sales
reporting).
5. When the transaction data on forwards (including
(Huifa No. 54 [2008])
3. Whether the statistical data on foreign
joint handling of forward settlement and sales of
5. Circular of the General Affairs
exchange settlement and sales are accurate,
foreign exchange), swaps (including currency swap),
Department of the State Administration of
mainly including currencies, amounts,
options (including option portfolio) are not reported
Foreign Exchange on Adjusting the
transaction subjects, and classification of the
timely, accurately and completely, if found, 0.1 point
Relevant Indicators on Statistical Statements
statistical items.
is deducted each time.
of Banks' Foreign Exchange Settlement and
4. Whether the transaction data on forwards
The score for this item can be deducted until zero.
Sales (Huizongfa No. 65 [2014])
(including joint handling of forward settlement
and sale of foreign exchange), swaps (including
currency swap), options (including option
portfolio) are timely and accurately reported to
foreign exchange authorities.
The accuracy,
With respect to pilot operations of cross-border
If found, 0.2 point shall be deducted for violation in
Circular of the State Administration of
timeliness, and
foreign exchange payments through payment
each deal.
Foreign Exchange on the Implementation of
institutions, whether the information on the
The score for this item can be deducted until zero.
the Pilot Program of Cross-border Foreign
completeness
of the statistical
Current
foreign exchange settlement and sales as well as
Exchange Payment Business through
data on the
foreign exchange accounts are not reported
Payment Institutions (Huifa No.7 [2015])
pilot operations
completely, accurately (including currency,
of cross-border
transaction amount, transaction subjects,
1
account (6
point
points)
foreign
statistics and classification) and timely
exchange
payment
through
32
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
payment
institutions
With respect to foreign-related receipts and
Where a late report, erroneous report, or missing
1. Circular of the State Administration of
payments and domestic receipts and payments
report is found, 0.05 point shall be deducted for each
Foreign Exchange Concerning Printing and
(including RMB) under the trade in goods of
item each time; as for reports that hide the truth, 0.2
Distributing the Provisions for Foreign
enterprises, whether the special information for
point shall be deducted for each time. The score for
Exchange Administration of Trade in Goods
verification on receipts and payments under
this item can be deducted until zero.
(Huifa No. 38 [2012])
trade in goods is reported on a timely, accurate
Branches of the SAFE may make discretionary
2. Circular of the State Administration of
and complete basis.
adjustment on the weights according to the deals of
Foreign Exchange on Doing Well the Work
receipts and payments under trade through banks
Related to Adjustments in the Domestic
within their jurisdictions.
Banks’ Foreign-related Receipt and
The accuracy
and timeliness
of the data
declared on the
verification of
2
foreign
points
exchange
receipts from
and payments
Payment Vouchers and Preparation of the
for trade in
Relevant Information for Submission (Huifa
goods
No. 49 [2011])
1. Whether the banks record foreign exchange
For item 1 and item 2, 0.04 point shall be deducted
1. Measures for the Administration of
settlement and sales for individuals under the
for each deal. Where a late report, erroneous report,
Individual Foreign Exchange (Decree No. 3
current and capital accounts into the system item
or missing report is found in item 3 and item 4, 0.2
[2006] of the People’s Bank of China)
by item in accordance with the regulations.
point shall be deducted for each time. For item 5, if
2. Circular of the State Administration of
2. Whether the data entered are accurate and
found, 0.2 point shall be deducted for each deal; in
Foreign Exchange on Printing and Distributing
complete, and if any error occurs, whether the
case that significant error in the data on cash deposits
the Detailed Rules on Implementation of the
banks carry out a modification, cancellation, or
and withdrawals is caused by banking systems, if
Measures for the Administration of Individual
supplementary entry in accordance with the
found, 0.5 point is deducted each time.
Foreign Exchange (Huifa No. 1 [2007])
regulations in a timely and accurate manner.
The score for this item can be deducted until zero.
3. Circular of the General Affairs Department
The accuracy
and timeliness
of the data
entered and
2
submitted by
points
the banks on
individual
3. Whether the information on abnormal and
of the State Administration of Foreign
suspicious transactions by individuals and the
Exchange on Regulating Operations of Foreign
“Watch List” of split-up foreign exchange
Exchange Settlement and Sales for Individuals
settlement and sales are reported in accordance
by Banks (Huizongfa No. 90 [2007])
with the regulations;
4. Circular of the General Affairs Department
4. Whether the feedback on abnormal and
of the State Administration of Foreign
foreign
exchange
administration
33
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
suspicious transactions by individuals are
Exchange on Promulgating the Emergency
provided in accordance with the regulations;
Plan for the Management Information System
5. Whether the data on cash deposits and
for Foreign Exchange Settlement and Sales for
withdrawals in individual accounts are not
Individuals (Huizongfa No. 49 [2008])
reported completely, accurately (including
5. Circular of the State Administration of
currency, transaction amount, transaction
Foreign Exchange and the General
subject, statistics and classification) and timely.
Administration of Customs on Printing and
Distributing the Interim Measures for
Administration of Carrying Foreign Currency
Cash into and out of China (Huifa No. 102
[2003])
6. Circular of the State Administration of
Foreign Exchange on Printing and Distributing
the Operational Rules on Carrying Foreign
Currency Cash into and out of China (Huifa
No. 21 [2004])
7. Circular of the State Administration of
Foreign Exchange on Further Perfecting
Administration of Foreign Exchange
Settlement and Sales for Individuals (Huifa No.
56 [2009])
8. Circular of the State Administration of
Foreign Exchange on Printing and Distributing
the Interim Measures for Administration of
Foreign Exchange Settlement and Sales for
Individuals through E-banking (Huifa No. 10
[2011])
9. Circular of the State Administration of
Foreign Exchange on Trial Implementation of
34
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
the “Watch List” Management of Individual
Splitting Foreign Exchange Settlement and
Sales by Banks Engaging in
E-Channeled-based Foreign Exchange
Settlement and Sales for Individuals (Huifa No.
41 [2011])
10. Circular of the General Affairs Department
of the State Administration of Foreign
Exchange on the Data Reporting of Overseas
Financial Assets/liabilities and Transactions,
Individual Foreign Cash Deposit/Withdrawal,
and External Debt Owned by Banks
(Huizongfa No. 95 [2014])
Whether various reports on insurance businesses
Where a late report, erroneous report, or missing
1. Circular of the State Administration of
are provided in accordance with the regulations
report is found, 0.2 point shall be deducted for each
Foreign Exchange on Relevant Issues
The accuracy
item and each time. The score for this item can be
Concerning the Submission of Foreign
and timeliness
deducted until zero.
Exchange Regulatory Statements for
of the
Insurance Business (Huifa No. 27 [2003])
submitted
2. Circular of the State Administration of
1
statistical
Foreign Exchange on Printing and Issuing
point
statement on
Guidelines for Foreign Exchange
foreign
Administration for Insurance Business
exchange for
(Huifa No. 6 [2015])
insurance
3. Circular on Adjusting the Method for
business
Submission of the Foreign Exchange
Regulatory Statements for Insurance
Business (Huizongfa No. 64 [2014])
Capital
11
The accuracy
1. Data for clients: accuracy and timeliness of
1. In case of delayed and erroneous reporting, 0.1
1. Circular of the State Administration of
account (11
points
and timeliness
the information on registration, account opening
point is deducted for each deal; for missing and
Foreign Exchange on Doing Well the Work
35
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
Remarks
indicator
points)
of the banks’
and closing, receipts, payments and balance of
concealed reporting, 0.2 point shall be deducted for
Related to Adjustments in the Domestic
submission of
the accounts, foreign exchange settlement and
each deal;
Banks’ Foreign-related Receipt and
the data under
sales in the accounts, cross-border receipts and
2. Branches of the SAFE may make discretionary
Payment Vouchers and Preparation of the
payments as well as domestic transfer as
adjustment on the weights according to the volume
Relevant Information for Submission (Huifa
reported on behalf of clients by banks;
and number of transactions under the capital account
No. 49 [2011])
2. Own data: accuracy and timeliness of data on
made by banks within their jurisdictions and the
2. Circular of the State Administration of
banks’ own capital account
volume of capital account transactions of their own.
Foreign Exchange on Promotion of the
The score for this item can be deducted until zero.
Capital Account Information System (Huifa
the capital
account
No. 17 [2013])
Accuracy of
logical
1. Whether the information on account opening
In the whole jurisdiction, 1 point is deducted for the
Circular of the State Administration of
is absent;
bank with the highest error rate, while 0 point for the
Foreign Exchange on Conducting
2. Whether the receipts, payments and balance
bank with the lowest error rate;
Integration and Promotion of Application
are balanced;
Point to be deducted for other banks = 1*(error
Portal of the Management Information
3. The balance of an account to be closed is not
rate/the highest error rate);
System for Foreign Exchange Accounts
zero.
Error rate = (absence of information on account
(Huizongfa No. 87 [2013])
Technology
2
relationship
points
between
Management
(2 points)
account data as
opening + receipts, payments and balance not
reported
balanced + balance of an account to be closed is not
zero) / total of accounts opened.
The score for this item can be deducted until zero.
(I) Clear responsibilities for internal control
1. The internal control system is well-developed and
Relevant laws and regulations on foreign
The
Banks shall set up internal control governance
the performance in implementation is satisfactory,
exchange administration
assessment
and organizational structure with rational
10≤final score≤15;
teams
division of responsibilities, explicit duties and
2. The internal control system is basically complete,
give scores in
clear-cut reporting lines based on violation risks
and the performance in implementation is average,
a
of foreign exchange business;
and no serious violation event occurs in the
manner after
implementation
1. Whether the senior management is
assessment period, 5≤final score＜10;
summarizing
status
responsible for formulating systematic
3. The internal control system is not complete, and
opinions from
institutions, process, methods, establishing and
relatively serious violation event occurs in the
the
refining internal organizational structure to
assessment period, 0≤the final score＜5.
Departments
Completeness
of internal
Internal Control System and
15
control system
Others (30 points)
points
and
36
shall
uniform
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
Remarks
indicator
ensure the effective fulfillment of various
of
responsibilities with respect to internal control of
Affairs,
violation risks from foreign exchange business;
Receipts
2. Whether a dedicated department has been
Payments,
designated as functional department on
Current
internal control for violations in foreign
Account,
exchange business to lead efforts in coordinated
Capital
planning of internal control system and
Account,
organizing implementation as well as inspection
Management
and assessment;
& Inspection
3. Whether the Internal Audit Department has
and
conducted audit on the adequacy and
Technology.
effectiveness of the bank’s internal control on
violation risks from foreign exchange business
and has reported problems identified in audit in a
timely manner and supervised the rectification;
4. Whether specific business departments are
responsible for participating in formulation of
foreign exchange business system and operating
procedures related with its own duties,
responsible for strictly implementing relevant
system and regulations, for organizing
self-inspection and reporting defects existing in
internal control and making rectification in a
timely manner.
(II) Complete, compliant and effective
internal control measures
Banks shall formulate complete, systematic and
compliant management system and business
37
General
&
Assessment
Item
Sub-item
Score
Criteria
Scoring method
indicator
process for each foreign exchange business and
conduct evaluation on a regular basis:
1. Whether the banks have adequately identified
and evaluated the violation risks confronted in
operation of each foreign exchange business,
adopted proper control measures and
implemented standardized and unified business
process to ensure the standardized operation;
2. Whether the banks have strengthened
systematic and automatic control on business
activities by effectively integrating internal
control process with business operation system
and management information system;
3. Whether the banks have rationally defined the
responsibilities and authorities for each
department and post related with foreign
exchange business, created standardized
descriptions of responsibilities, established
corresponding delegation system and clarified
relevant reporting lines;
4. Whether the banks have formulated relevant
systems to standardize behaviors of employees,
clarify prohibitive regulations for employees,
and established reporting, investigation and
punishment mechanism for abnormal behaviors
of employees;
5. Whether the banks have conducted evaluation
on potential violation risks while launching new
foreign exchange business and providing new
38
Main reference documents and basis
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
indicator
foreign exchange products and services, and
formulated relevant management measures;
6. Whether the banks have made adjustments to
administrative measures for internal control in a
timely manner based on development and
changes in foreign exchange situations and
regulatory rules.
(III) Effective guarantee from internal control
1. Whether the foreign exchange business
operation and management information system
can record operation and management
information in a timely and accurate manner to
ensure continuity and traceability;
2. Whether the banks have effective information
communication mechanism in place to ensure
that the senior management can keep informed
of violation risk profile of foreign exchange
business in a timely manner, and relevant
departments and employees can learn about
systems and information related with their duties
in time;
3. Whether the banks have reinforced trainings
on foreign exchange regulatory rules among
foreign exchange business staff;
4. Whether the banks have established and
refined the incentive and constraint mechanism
and the employee performance assessment
system, and whether the requirements for
management of foreign exchange violation risks
39
Main reference documents and basis
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
indicator
are fully reflected.
(IV) Timely self-evaluation of internal control
1. Whether the banks have conducted
self-evaluation on the construction,
implementation and operation results of internal
control system for violation risks from foreign
exchange business, and have submitted
evaluation reports to foreign exchange
authorities;
2. Whether the internal control assessment is
organized and implemented by independent
department and whether the written assessment
report is prepared;
3. The implementation shall be at least on an
annual basis, and where material changes in the
operational environment for foreign exchange
business or other events of substantial impact
occur, internal control assessment shall be
organized and conducted in a timely manner;
4. Whether the assessment report objectively
reflects the impact and probability of occurrence
of defects existing in internal control, and
defines relevant rectification measures and
plans.
(V) Adequate supervision of internal control
1. Whether the internal audit, internal control
departments and specific business departments
have coordinated with and supported each other
based on division of responsibilities, to build
40
Main reference documents and basis
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
indicator
supervision and inspection system covering
institutions at all levels, all foreign exchange
products and all foreign exchange business
processes;
2. Whether the reporting and information
feedback on internal control supervision are
smooth;
3. Whether staff of relevant departments timely
submit reports on internal control defects
identified according to specified reporting
routes;
4. Whether the banks have established
rectification mechanism in internal control for
foreign exchange business violations, designated
responsible department for rectification, and
standardized rectification process to ensure the
proper implementation of rectification measures.
Assistance with
foreign
1. Whether valuable opinions and suggestions
1. If the performance in implementation is excellent,
have been proposed on improving foreign
3.5≤the final score≤5;
exchange supervision;
2. If the performance in implementation is average,
2. Whether the banks have reported in a timely
1.5≤the final score＜3.5;
manner any client having foreign exchange
3. If the performance in implementation is poor,
irregularities.
0≤the final score＜1.5.
5
exchange
points
authorities in
3. Where a self-inspection is required for a
daily
special inspection by the foreign exchange
supervision
authorities, whether the banks can earnestly
conduct a self-inspection.
4. Whether the banks actively support other
ad-hoc work assigned by foreign exchange
41
Main reference documents and basis
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
Remarks
indicator
authorities.
Whether the banks actively support on-site
1. If the performance in implementation is excellent,
Cooperation in
inspection and verification work, including
3.5≤the final score≤5;
5
on-site
providing workplaces and data or materials
2. If the performance in implementation is average,
points
inspection and
required, and allowing access to business
1.5≤the final score＜3.5;
system.
3. If the performance in implementation is poor,
verification
0≤the final score＜1.5.
5
Rectification of
points
violations
1. Whether the annual rectification report is
1. If the performance in implementation is excellent,
submitted in a timely manner;
3.5≤the final score≤5;
2. Whether the rectification measures against
2. If the performance in implementation is average,
violations are developed timely and
1.5≤the final score＜3.5;
implemented properly;
3. If the performance in implementation is poor,
3. Whether the follow-up rectification efforts are
0≤the final score＜1.5.
proactively communicated;
4. Whether the rectifications are effective, and
whether similar mistakes are made repeatedly
Risk-based Assessment Indicator
1. Whether the banks control their foreign
When the banks are faced with the pressure of
Regarding the
exchange loan-to-deposit ratio within the
cross-border capital inflow during the period of
risk-based
specified range during the assessment period.
assessment, where their foreign exchange
assessment
2. Cross-border capital flows are divided into
loan-to-deposit ratio falls within the specified range,
indicator, the
Foreign
three scenarios, i.e.: inflow, outflow and basic
no points shall be deducted; where the ratio is above
assessment
2
exchange
equilibrium, which shall be decided by foreign
the specified ratio, 0.1 point shall be deducted for
shall be
points
loan-to-deposit
exchange authorities at the end of assessment
each additional percentage point; if the additional
carried out by
period.
percentage is less than one percentage point, the point
the legal
3. Where there is inflow pressure during the
deducted shall be calculated based on the additional
person, and it
assessment period, such indicator shall be 2
percentage point rounded to two decimal places, with
will not be
points; where there is cross-border capital
2 points at maximum to be deducted.
included in
outflow pressure during the assessment period,
The maximum score for such indicator is 2 points,
the content of
Risk-based
Balance of
Assessment
payments (5
Indicator
points)
(10 points)
ratio
42
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
Remarks
indicator
Foreign
such indicator is not to be assessed, its score is
while the minimum score is 0 point. The foreign
the
transferred to the indicator of “Foreign
exchange loan-to-deposit ratio = foreign exchange
assessment
Exchange Settlement and Sales and Variation
loans/ (foreign exchange deposits + synthetic
for the banks'
Ratio of Positions”; where the cross-border
positions in the foreign exchange settlement and
branches. As
capital flow shows basic equilibrium, such
sales). Specifically, 1. Policy banks are not subject to
for banks that
indicator of banks shall be the full score.
this assessment indicator, and the average score on
have not
this assessment for nationwide commercial banks will
launched the
be adopted. 2. The specified ratio for foreign banks is
corresponding
110%, and for other kinds of banks 85%. 3. Foreign
businesses,
exchange loans and deposits shall be subject to the
the score for
average value of the balance at the end of the quarter
this
according to the Monthly Report on Foreign
assessment
Exchange Credit Receipts and Payments of China’s
item shall be
Financial Institutions issued by the People’s Bank of
the average of
China (PBOC); foreign exchange loans exclude
the other
on-lending of overseas financing. 4. The synthetic
banks in
positions in foreign exchange settlement and sales
China that
shall be subject to the daily average of the synthetic
have
positions in foreign exchange settlement and sales
launched such
calculated on an accrual basis.
businesses.
1. Whether the variation ratio of “spot and
1. When there is cross-border capital inflow pressure
forward foreign exchange settlement and sale
during the assessment period, if the variation ratio of
and synthetic positions” during an assessment
“spot and forward foreign exchange settlement and
period is above or below the national average
sales and synthetic positions” is less than the national
level.
average level at the same period, no point is
2. Cross-border capital flows are divided into
deducted; 0.05 point is deducted for every 1
three scenarios, i.e.: inflow, outflow and basic
percentage point above the national average level,
equilibrium, which shall be decided by foreign
until zero; when it is less than 1 percentage point, the
exchange authorities at the end of assessment
conversion is made by rounding up to two decimal
exchange
3
settlement and
points
sales and
variation ratio
of positions
43
Assessment
Item
Sub-item
Score
Criteria
Scoring method
indicator
period.
places.
3. Where there is cross-border capital inflow
2. When there is cross-border capital outflow
pressure during the assessment period, such
pressure during the assessment period, if the variation
indicator shall be 3 points; where there is
ratio of “spot and forward foreign exchange
cross-border capital outflow pressure during the
settlement and sales and synthetic positions” is above
assessment period, such indicator shall be 5
the national average level at the same period, no point
points; where the cross-border capital flow
is deducted; 0.05 point is deducted for every 1
shows basic equilibrium, such indicator of banks
percentage point below the national average level,
shall be the full score.
until zero; when it is less than 1 percentage point, the
conversion is made by rounding up to two decimal
places.
3. Variation ratio of spot and forward foreign
exchange settlement and sales and synthetic positions
= (spot and forward foreign exchange settlement and
sales and synthetic positions during the assessment
period - spot and forward foreign exchange
settlement and sales and synthetic positions during
the previous assessment period)/absolute value of
spot and forward foreign exchange settlement and
sales and synthetic positions during the previous
assessment period.
4. Spot and forward foreign exchange settlement and
sales and synthetic positions = banks’ difference of
foreign exchange settlement and sales + variation of
difference of banks’ undue forward settlement and
sales of foreign exchange - variation in synthetic
positions in banks’ foreign exchange settlement and
sales.
Specially, (1) The difference of foreign exchange
44
Main reference documents and basis
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
indicator
settlement and sales = The settlement of foreign
exchange – The sales of foreign exchange; (2) The
data on banks' settlement and sales of foreign
exchange include those of the banks themselves and
their clients, which are sourced from the banks'
monthly report on foreign exchange settlement and
sales; (3) Variation in difference of banks’ undue
forward settlement and sales of foreign exchange =
difference of banks’ undue forward settlement and
sales of foreign exchange at the end of assessment
period - difference of banks’ undue forward
settlement and sales of foreign exchange at the
beginning of assessment period; (4) Variation in
synthetic positions in banks’ foreign exchange
settlement and sales = balance of synthetic positions
in foreign exchange settlement and sales at the end of
assessment period - balance of synthetic positions in
foreign exchange settlement and sales at the
beginning of assessment period, as provided in the
daily reports on synthetic positions in banks’ foreign
exchange settlement and sales.
Performance
Capital
2
No points shall be deducted if the performance rate is
guarantees provided by the banks is controlled
0-3‰ (inclusive); where the performance rate is
within the range of reasonable standards.
above 3‰, 1 point shall be deducted for each
additional permillage point (rounded off to 1‰) until
rate of external
account (5
the score is zero.
points
points)
Whether the performance rate of the external
guarantees
Performance rate of external guarantees = Total
performed amount of external guarantees for the
year/Balance of the external guarantees at the end of
45
Main reference documents and basis
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
the year*100％
3
Trade
points
financing risk
1. Whether the banks control the proportion of
Where the proportion of usance letters of credit with
usance letters of credit with a term of less than
a term of less than 90 days and overseas agency
90 days and overseas agency payments within
payments are within the range of the national average
the average national range for similar banks
of similar banks, no points shall be deducted. Where
during the assessment period.
the proportion exceeds the national average, 0.1 point
2. Cross-border capital flows are divided into
shall be deducted for each additional percentage
three scenarios, i.e.: inflow, outflow and basic
point; where the additional rate is less than one
equilibrium, which shall be decided by foreign
percentage point, the points deducted shall be
exchange authorities in the year-end assessment.
calculated based on the additional percentage point
3. Where there is cross-border capital outflow
rounded off to two decimal places.
pressure or basic equilibrium during the
Proportion of usance letters of credit with a term of
assessment period, the banks shall get full score
less than 90 days and overseas agency payments =
on this indicator.
Balance of usance letters of credit with a term of less
than 90 days (inclusive) and overseas agency
payments/Balance of usance letters of credit and
overseas agency payments.
Notes: 1. The banks are grouped by Chinese-funded
and foreign-funded banks. 2. The average values for
all banks are calculated and released by the State
Administration of Foreign Exchange.
Separate assessment indicators for the head offices of the banks
Separate
Compliance of
1. Whether the banks timely and accurately
1. Where the limit is exceeded without the
1. Measures for Administering Foreign
assessment
administration
submit the statement on the synthetic positions
authorization of the foreign exchange authorities and
Exchange Settlement and Sales by Banks
on the synthetic
in foreign exchange settlement and sales to the
where the position is squared on the next working
(Decree No. 2 [2014] of the People’s Bank
positions in
foreign exchange authorities in accordance with
day, no points shall be deducted. In case of exceeding
of China)
the regulations (submitting the synthetic
the limit for 2 consecutive days, 0.5 point shall be
2. Circular of the State Administration of
indicators
Balance of
1.5
for the
payments (9.5
points
head
points)
foreign
offices of
exchange
positions in banks' foreign exchange settlement
deducted; in case of exceeding the limit for 3
Foreign Exchange on Printing and
the banks
settlement and
and sales of the previous day before 10 o’clock
consecutive days, 1 point shall be deducted; and for 4
Distributing Detailed Rules for the
46
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
sales
(25 points)
of each working day).
consecutive days or more, 1.5 points shall be
Implementation of the Measures for
2. Whether the banks keep their positions within
deducted.
Administering Foreign Exchange Settlement
the limits for the positions as verified by the
2. Where the banks fail to faithfully complete the
and Sales by Banks (Huifa No. 53 [2014])
foreign exchange authorities (realized by
statement when the limit is exceeded; if found, 1
3. Circular of the People's Bank of China on
checking the approval instrument for the limit of
point shall be deducted each time.
Issues Concerning the Administration of
the banks’ synthetic positions as verified by the
3. Where the banks fail to report the statement on the
Special RMB Account for Foreign
foreign exchange authorities and the Daily
synthetic positions in foreign exchange settlement
Exchange Settlement and Sales by Foreign
Statement on the Synthetic Positions in the
and sales, 0.5 point shall be deducted per day, 0.1
Banks (Yinfa No. 12 [2015])
Foreign Exchange Settlement and Sales of the
point each time for a late report, and 0.2 point for
Bank);
each error found;
The score for this item can be deducted until zero.
Late reports: the banks submit the statement after the
prescribed reporting time of the day but within the
working time of the day; Missing reports: the banks
fail to submit the data of the previous day on the
current day; Erroneous reports: the data reported by
the banks are verified by the SAFE offices as
erroneous.
1. Whether balancing the exchange rate exposure
1. Where the exchange rate exposure of precious
1. Article 24 and 26, Regulations of the
of precious metal is approved by or filed with
metal is balanced without filing with or approval by
People's Republic of China on Foreign
foreign exchange authorities, and whether the
foreign exchange authorities, if found, 1 point is
Exchange Administration (Decree No. 532
statistical statements on exchange rate exposure
deducted each time;
of the State Council)
of precious metal business are submitted to
2. Where the statistics on exchange rate exposure of
2. Measures for Administering Foreign
foreign exchange authorities in accordance with
precious metal business are underreported, if found,
Exchange Settlement and Sales by Banks
the regulations;
0.5 point is deducted each time, while 0.1 point is
(Decree No. 2 [2014] of the People’s Bank
2. Whether the conversion between domestic and
deducted for each day when the reporting is delayed;
of China)
foreign currencies of capital (or working capital)
3. Where the conversion between domestic and
3. Circular of the State Administration of
is approved by foreign exchange authorities, and
foreign currencies of capital (or working capital) is
Foreign Exchange on Printing and
whether their own expenses and costs are
not duly made, if found, 1 point is deducted each
Distributing Detailed Rules for the
Compliance of
handling
foreign
exchange
1
settlement and
point
sales for
self-purposes
and other
relevant
businesses
47
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
consistent with the principle of actual
time;
Implementation of the Measures for
requirements;
4. Where the banks fail to set the merchant category
Administering Foreign Exchange Settlement
3. Whether merchant category codes for
codes for the use of bank cards outside of China, if
and Sales by Banks (Huifa No. 53 [2014])
overseas use of bank cards are duly set, and
found, 1 point shall be deducted each time;
4. Circular of the State Administration of
whether the statistical statements on banks’
5. Where the statistics on banks' foreign currency
Foreign Exchange on Regulating
foreign currency cards are duly submitted to
cards are not duly reported, if found, 0.5 point is
Administration of Foreign Currency Cards
foreign exchange authorities.
deducted each time.
of Banks (Huifa No. 53 [2010])
The score for this item can be deducted until zero.
5. Circular of the State Administration of
Foreign Exchange on Relevant Issues
Concerning Foreign Exchange
Administration of the Exchange Rate
Exposure of the Precious Metal Business
Conducted by the Relevant Banks (Huifa
No. 8 [2012])
1. Whether the Declaration Form on Overseas
1. Where an error is found in the data on the
1. Measures for Declaration of Balance of
Assets and Liabilities and Profits & Losses of
declaration form, 0.2 point shall be deducted.
Payments Statistics (Decree No. 642 of the
financial institutions is submitted in a timely,
2. Where the banks fail to submit or provide feedback
State Council)
The accuracy,
accurate, and complete manner;
on the declaration data within the prescribed time (as
2. Circular of the State Administration of
timeliness, and
2. Whether the statistical statements on the
against the date of receipt by the foreign exchange
Foreign Exchange on Distributing the
completeness
foreign exchange assets and liabilities of
authorities), 0.2 point shall be deducted for each
Detailed Rules on Implementation of the
of the statistical
Chinese-funded financial institutions are
delayed working day (the failure to submit on time
Measures for Declaration of the Balance of
submitted in a timely, accurate, and complete
due to force majeure will be duly considered).
Payments Statistics (Huifa No. 21 [2003])
manner;
3. Where the reported declaration form is incomplete
3. Circular of the State Administration of
3. Whether the Questionnaires on Banks' Trade
in terms of the statistical content or in terms of the
Foreign Exchange on the Submission of the
Financing Business are submitted in a timely,
number of forms, 0.2 point shall be deducted for each
Statistical Statement on Foreign Exchange
accurate, and complete manner;
missing item, and 0.6 point for each missing form.
Assets and Liabilities by Chinese-Funded
4. Whether the statistics for external financial
4. Where the data are not backed up in accordance
Financial Institutions (Huifa No. 6 [2009])
assets and liabilities and transactions are
with the regulations, 0.2 point shall be deducted for
4. Circular of the General Affairs
submitted in a timely, accurate, and complete
each time; where the data are lost and cannot be
Department of the State Administration of
7
data in the
points
direct
declaration by
financial
institutions
48
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
manner.
restored due to the banks’ failure to back up in
Foreign Exchange on Conducting Survey on
accordance with the regulations (force majeure
Banks' Trade Financing Business
excluded), 0.6 point shall be deducted each time;
(Huizongfa No. 114 [2011])
5. For institutions which actively support the work of
5. Circular of the General Affairs
foreign exchange authorities, propose rational
Department of the State Administration of
suggestions for system upgrade and summarize
Foreign Exchange on Strengthening
inspection rules, bonus points can be given where
Declaration of Overseas Assets and
appropriate.
Liabilities as well as the Profits and Losses
The score for this item can be deducted until zero.
by Financial Institutions and Upgrade of
Note: where the banks proactively find an error and
Reporting System (Huizongfa No. 145
make modifications before the issuance of the
[2012])
inspection results by the foreign exchange authorities,
6. Circular of the General Affairs
no points shall be deducted.
Department of the State Administration of
Foreign Exchange on the Supplementary
Submission of the Statistical Statement on
Foreign Exchange Assets and Liabilities by
Chinese-Funded Financial Institutions
(Huizongfa No. 3 [2012])
7. Circular of the State Administration of
Foreign Exchange on Printing and
Distributing the Statistics System of
External Financial Assets and Liabilities and
Foreign Transactions (Huifa No. 43 [2013])
8. Circular of the State Administration of
Foreign Exchange on Issuing the Standards
Version 1.0 for Collecting Data on Foreign
Exchange Transactions by Financial
Institutions(Huifa No. 18 [2014])
Capital
2
Implementation
Whether the banks keep the outstanding
The assessment is made according to the following
49
1. Measures for the Administration of
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
account (4.5
points)
points
of the
short-term external debt within the outstanding
two quotas:
Borrowing of International Commercial
short-term
short-term external debt quota as verified by the
1. Implementation for each month: where the
Loans by Domestic Institutions
foreign exchange authorities
outstanding short-term external debt of the banks at
(Huizhengfazi No. 6 [1997])
the end of each month exceeds the quota, 0.1 point
2. Interim Measures for the Administration
shall be deducted for each time. If the exceeding of
of the External Debt (Decree No. 28 of the
the quota is identified during an on-the-spot
State Development Planning Commission,
inspection, points shall be deducted in the same way
the Ministry of Finance, and the State
as for when exceeding the quota at the end of the
Administration of Foreign Exchange)
current month.
3. Circular of the State Administration of
2. Implementation for the whole year: whether the
Foreign Exchange on Relevant Issues
average monthly outstanding short-term external debt
Concerning Implementation of the Measures
exceeds the quota, points shall be deducted according
for the Administration of the External Debt
to the rate of exceeding the quota. Where the rate of
of Domestic Foreign Banks (Huifa No. 59
exceeding the quota is between 0-10% (inclusive),
[2004])
0.3 point shall be deducted; where the rate is between
4. Circular on Releasing the Annual
10% and 20% (inclusive), 0.6 point shall be
Outstanding Short-term External Debt
deducted; where the rate is between 20% and 50%
Quotas of Financial Institutions.
external debt
quota
(inclusive), 0.8 point shall be deducted; where the
rate is over 50%, 1 point shall be deducted. Where
the rate of exceeding the quota is over 50% and the
banks fail to explain the reason proactively and to
lower the outstanding short-term external debt in a
timely manner after the event, 1.5 points shall be
deducted. The score for this item can be deducted
until zero.
[the average monthly outstanding short-term external
debt =Σ outstanding short-term external debt at the
end of each month/12].
[Rate of exceeding quota = (the average monthly
50
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
outstanding short-term external debt - the short-term
external debt quota)/ the short-term external debt
quota*100%].
Error rate at the data interface on the opening
Where the error rate at the data interface exceeds 1%
1. Circular of the State Administration of
and closing, receipts, payments and balance of
for one month, 0.2 point is deducted each time.
Foreign Exchange on Doing Well the Work
the accounts, foreign exchange settlement and
The score for this item can be deducted until zero.
Related to Adjustments in the Domestic
sales within the accounts as well as banks’ own
Banks’ Foreign-related Receipt and
business under the capital account as reported by
Payment Vouchers and Preparation of the
banks.
Relevant Information for Submission (Huifa
No. 49 [2011])
0.5
Accuracy of
2. Circular of the State Administration of
point
data interface
Foreign Exchange on Pilot Program of the
Capital Account Information System and
Related Data Submission (Huifa No. 60
[2012])
3. Circular of the State Administration of
Foreign Exchange on Promotion of the
Capital Account Information System (Huifa
No. 17 [2013])
Domestic
1. Whether the banks handle the account
Point deductions will be made based on the accuracy
1. Measures for the Administration of
opening for the QFII in accordance with the
and timeliness of the relevant reported data. In case
Domestic Securities Investments of
regulations on the foreign exchange
of erroneous reporting, 0.1 point will be deducted for
Qualified Foreign Institutional Investors
administration and timely report the account
each deal, and in case of delayed reporting, 0.05 point
(Decree No.36 [2006] of the China
opening for the record.
will be deducted for each deal.
Securities Regulatory Commission, the
0.5
custody
point
services for
2. Whether the banks handle the inward
Point deductions will be made based on whether the
People’s Bank of China, and the State
QFII
remittance of principal that exceeds the
banks handle the opening and usage of accounts, the
Administration of Foreign Exchange)
investment quota approved by the foreign
inward and outward remittances of funds, as well as
2. Provisions on Foreign Exchange
exchange authorities or exceeds the period when
the funds exchange in accordance with the
Administration of Securities Investments in
the investment quota should be inward remitted
regulations; for each deal in breach of the regulations,
China by Qualified Foreign Institutional
51
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
or remit outward the principal within the lock-up
0.1 point will be deducted.
Investors (Announcement No. 1 [2009] of
period for the QFII.
Point deductions will be made based on whether the
the SAFE, amended based on the
3. Whether the banks timely and accurately
banks report any significant event in a timely manner
Announcement No. 2 [2012] of the SAFE)
submit to the foreign exchange authorities the
as required; for each late report, 0.1 point will be
statements required by the laws and regulations;
deducted.
4. Whether the banks timely report any
The score for this item can be deducted until zero.
significant events.
5. Whether the banks perform their duty in
supervising the investment operations of the
QFII, and identify and timely report illegal
investment instructions thereof, if any.
6. Whether the banks timely and accurately
register the business in light of the actual
business conditions.
1. Whether the banks report the account opening
Point deductions will be made based on the accuracy
1. Measures for the Pilot Program of
for the record for the RQFII in accordance with
and timeliness of the relevant reported data. In case
Domestic Securities Investments by
the regulations on the foreign exchange
of erroneous reporting, 0.1 point will be deducted for
Qualified RMB Foreign Institutional
administration.
each deal, and in case of delayed reporting, 0.05 point
Investors (Decree No.90 of the China
2. Whether the banks handle the inward
will be deducted for each deal.
Securities Regulatory Commission, the
remittance of principal that exceeds the
Point deductions will be made based on whether the
People’s Bank of China, and the State
investment quota approved by the foreign
banks handle the opening and usage of accounts, the
Administration of Foreign Exchange)
exchange authorities or exceeds the period when
inward and outward remittances of funds, as well as
2. Circular of the State Administration of
the investment quota should be inward remitted
the funds exchange in accordance with the
Foreign Exchange on Relevant Issues
or remit outward the principal within the lock-up
regulations; for each deal in breach of the regulations,
Concerning the Pilot Program of Domestic
period for the RQFII.
0.1 point will be deducted.
Securities Investments by Qualified RMB
3. Whether the banks timely and accurately
Point deductions will be made based on whether the
Foreign Institutional Investors (Huifa No. 9
submit to the foreign exchange authorities the
banks report any significant event in a timely manner
[2013])
statements required by the laws and regulations;
as required; for each late report, 0.1 point will be
4. Whether the banks timely report any
deducted;
Domestic
0.5
custody
point
services for
RQFII
52
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
indicator
significant events.
The score for this item can be deducted until zero.
5. Whether the banks timely and accurately
register the business in light of the actual
business conditions.
Domestic
0.5
custody
point
services for
QDII
1. Whether the banks handle the account
Point deductions will be made based on the accuracy
Provisions for the Administration of Foreign
opening and usage for the QDII in accordance
and timeliness of the relevant reported data. In case
Exchange in Overseas Securities
with the regulations on the foreign exchange
of erroneous reporting, 0.1 point will be deducted for
Investments by Qualified Domestic
administration.
each deal, and in case of delayed reporting, 0.05 point
Institutional Investors (Announcement No. 1
2. Whether the banks handle the inward and
will be deducted for each deal.
[2013] of the State Administration of
outward remittances of funds in accordance with
Point deductions will be made based on whether the
Foreign Exchange)
the regulations and report the relevant situations
banks handle the opening and usage of accounts, the
for the record.
inward and outward remittances of funds, as well as
3. Whether the banks submit statements of
the funds exchange in accordance with the
various kinds and report on significant events on
regulations; for each deal in breach of the regulations,
time.
0.1 point will be deducted.
4. Whether the banks timely and accurately
Point deductions will be made based on whether the
register the business in light of the actual
banks report any significant event in a timely manner
business conditions.
as required; for each late report, 0.1 point will be
deducted;
The score for this item can be deducted until zero.
1. When commercial banks provide overseas
Where the investment quota is exceeded, points will
Provisions for the Administration of Foreign
Banks’
wealth management services for clients, whether
be deducted based on the rate exceeding the quota
Exchange in Overseas Securities
overseas
the net outward remittance of funds (including
multiplied by 0.1; 0.05 point shall be deducted for
Investments by Qualified Domestic
each late report until the score is zero.
Institutional Investors (Announcement No. 1
0.5
wealth
RMB and foreign exchange) exceeds the
point
management
investment quota verified by the foreign
[2013] of the State Administration of
exchange authorities.
Foreign Exchange)
(QDII) services
for clients
2. Whether the banks timely and accurately
submit the relevant statements as required.
Technology
1
Compliance of
1. Whether the interface programs developed by
1. Where the interface programs developed by banks
53
Circular of the State Administration of
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
Main reference documents and basis
Remarks
indicator
Management
point
(1 point)
interface
banks are compliant with the requirements for
are not compliant with the requirements for
Foreign Exchange on the Standards Version
programs
acceptance check of interface program;
acceptance check of interface program, if found, 0.5
1.0 for Collecting Data by Financial
developed by
2. Whether the data interface documents
point is deducted each time;
Institutions (Huifa No. 18 [2014])
reported daily are compliant with the standards;
2. Where the data interface documents reported daily
3. Whether the interface development,
are not compliant with the standards, if found, 0.3
acceptance check and joint debugging are
point is deducted each time;
performed on a timely basis;
3. Where the interface development, acceptance
4. Whether the error in the data interface
check and joint debugging are not performed on a
program is corrected timely.
timely basis, if found, 0.3 point is deducted each
banks
time;
4. Where the error in the data interface program is not
corrected timely, if found, 0.5 point is deducted each
time.
The score for this item can be deducted until zero.
(I) Clear responsibilities for internal control
1. The internal control system is well-developed and
Relevant regulations and requirements for
Banks shall set up internal control governance
the performance in implementation is satisfactory,
foreign exchange administration
and organizational structure with rational
4≤final score≤6;
The
division of responsibilities, explicit duties and
2. The internal control system is basically complete,
shall
clear-cut reporting lines based on violation risks
and the performance in implementation is average,
conducted in
of foreign exchange business;
and no serious violation event occurs in the
a
1. Whether the Board of Directors is
assessment period, 2≤final score＜4;
manner after
responsible for establishing effective internal
3. The internal control system is not complete, and
the
control system to implement foreign exchange
relatively serious violation event occurs in the
assessment
administration regulations and ensures prudent
assessment period, 0≤the final score＜2.
teams collect
scoring
be
Completeness
Administration
of internal
of internal
6
control system
points
and
control and
others (10
implementation
points)
uniform
status
operations within the framework of existing
opinions from
foreign exchange administration regulations;
the
2. Whether the Board of Supervisors is
departments.
responsible for supervising the fulfillment of
internal control responsibilities on foreign
54
Assessment
Item
Sub-item
Score
Criteria
Scoring method
indicator
exchange business violations by the Board of
Directors and senior management;
3. Whether the senior management is
responsible for formulating systematic
institutions, process, methods, establishing and
refining internal organizational structure to
ensure the effective fulfillment of various
responsibilities with respect to internal control of
violation risks from foreign exchange business;
4. Whether a dedicated department has been
designated as functional department on
internal control for violations in foreign
exchange business to lead efforts in coordinated
planning of internal control system and
organizing implementation as well as inspection
and assessment;
5. Whether the Internal Audit Department has
conducted audit on the adequacy and
effectiveness of the bank’s internal control on
violation risks from foreign exchange business
and has reported problems identified in audit in a
timely manner and supervised the rectification;
6. Whether specific business departments are
responsible for participating in formulation of
foreign exchange business system and operating
procedures related with its own duties,
responsible for strictly implementing relevant
system and regulations, for organizing
self-inspection and reporting defects existing in
55
Main reference documents and basis
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
indicator
internal control and making rectification in a
timely manner.
(II) Complete, compliant and effective
internal control measures
Banks shall formulate complete, systematic and
compliant management system and business
process for each foreign exchange business and
conduct evaluation on a regular basis:
1. Whether the banks have adequately identified
and evaluated the violation risks confronted in
operation of each foreign exchange business,
adopted proper control measures and
implemented standardized and unified business
process to ensure the standardized operation;
2. Whether the banks have strengthened
systematic and automatic control on business
activities by effectively integrating internal
control process with business operation system
and management information system;
3. Whether the banks have rationally defined the
responsibilities and authorities for each
department and post related with foreign
exchange business, created standardized
descriptions of responsibilities, established
corresponding delegation system and clarified
relevant reporting lines;
4. Whether the banks have formulated relevant
systems to standardize behaviors of employees,
clarify prohibitive regulations for employees,
56
Main reference documents and basis
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
indicator
and established reporting, investigation and
punishment mechanism for abnormal behaviors
of employees;
5. Whether the banks have conducted evaluation
on potential violation risks while launching new
foreign exchange business and providing new
foreign exchange products and services, and
formulated relevant management measures;
6. Whether the banks have made adjustments to
administrative measures for internal control in a
timely manner based on development and
changes in foreign exchange situations and
regulatory rules.
(III) Effective guarantee from internal control
1. Whether the foreign exchange business
operation and management information system
can record operation and management
information in a timely and accurate manner to
ensure continuity and traceability;
2. Whether the banks have effective information
communication mechanism in place to ensure
that the senior management can keep informed
of violation risk profile of foreign exchange
business in a timely manner, and relevant
departments and employees can learn about
systems and information related with their duties
in time;
3. Whether the banks have reinforced trainings
on foreign exchange regulatory rules among
57
Main reference documents and basis
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
indicator
foreign exchange business staff;
4. Whether the banks have established and
refined the incentive and constraint mechanism
and the employee performance assessment
system, and whether the requirements for
management of foreign exchange violation risks
are fully reflected.
(IV) Timely self-evaluation of internal control
1. Whether the banks have conducted
self-evaluation on the construction,
implementation and operation results of internal
control system for violation risks from foreign
exchange business, and have submitted
evaluation reports to foreign exchange
authorities;
2. Whether the internal control assessment is
organized and implemented by independent
department and whether the written assessment
report is prepared;
3. The implementation shall be at least on an
annual basis, and where material changes in the
operational environment for foreign exchange
business or other events of substantial impact
occur, internal control assessment shall be
organized and conducted in a timely manner;
4. Whether the assessment report objectively
reflects the impact and probability of occurrence
of defects existing in internal control, and
defines relevant rectification measures and
58
Main reference documents and basis
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
indicator
plans.
(V) Adequate supervision of internal control
1. Whether the internal audit, internal control
departments and specific business departments
have coordinated with and supported each other
based on division of responsibilities, to build
supervision and inspection system covering
institutions at all levels, all foreign exchange
products and all foreign exchange business
processes;
2. Whether the reporting and information
feedback on internal control supervision are
smooth;
3. Whether staff of relevant departments timely
submit reports on internal control defects
identified according to specified reporting
routes;
4. Whether the banks have established
rectification mechanism in internal control for
foreign exchange business violations, designated
responsible department for rectification, and
standardized rectification process to ensure the
proper implementation of rectification measures.
Assistance with
foreign
2
exchange
points
authorities in
daily
supervision
1. Whether valuable opinions and suggestions
1. If the performance in implementation is excellent,
have been proposed on improving foreign
1.5≤the final score≤2;
exchange supervision;
2. If the performance in implementation is average,
2. Whether the banks have reported in a timely
0.5≤the final score＜1.5;
manner any client having foreign exchange
3. If the performance in implementation is poor,
irregularities.
0≤the final score＜0.5.
59
Main reference documents and basis
Remarks
Assessment
Item
Sub-item
Score
Criteria
Scoring method
indicator
3. Where a self-inspection is required for a
special inspection by the foreign exchange
authorities, whether the banks can earnestly
conduct a self-inspection.
4. Whether the banks actively support other
ad-hoc work assigned by foreign exchange
authorities.
Whether the banks actively support on-site
1. If the performance in implementation is excellent,
Cooperation in
inspection and verification work, including
0.8≤the final score≤1;
1
on-site
providing workplaces and data or materials
2. If the performance in implementation is average,
point
inspection and
required, and allowing business system access.
0.4≤the final score＜0.8;
verification
3. If the performance in implementation is poor,
0≤the final score＜0.4.
1
Rectification of
point
violations
1. Whether the annual rectification report is
1. If the performance in implementation is excellent,
submitted in a timely manner;
0.8≤the final score≤1;
2. Whether the rectification measures against
2. If the performance in implementation is average,
violations are developed timely and
0.4≤the final score＜0.8;
implemented properly;
3. If the performance in implementation is poor,
3. Whether the follow-up rectification efforts are
0≤the final score＜0.4.
proactively communicated;
4. Whether the rectifications are effective, and
whether similar mistakes are made repeatedly
60
Main reference documents and basis
Remarks
61
Schedule 2
Detailed List on the Assessment of Banks' Implementation of Regulations on Foreign Exchange
Administration
Reporting entity:
Category
Reporting date:
1. Business
compliance
(Summary)
1.1
Compliance
of handling
foreign
exchange
settlement
and sales
and other
relevant
businesses
1.2
Compliance
of the
administration
on the
synthetic
positions in
the foreign
exchange
settlement
and sales
……
2. Data
quality
(Summary)
2.1
Accuracy,
timeliness,
and
integrity of
the data for
the indirect
declaration
of the BOP
statistics
……
3. Internal
control
system and
others
(Summary)
4. Score of
risk-based
assessment
indicators
(Summary)
5.
Total
Assessment
rating
Additional
items
(Summary)
Bank
1
Bank
2
Bank
3
Bank
4
Bank
5
Bank
……
Operated by:
Tel:
Reviewed by:
Tel:
Note: 1. This form is the appendix to the report submitted by the assessment teams of the branches and foreign exchange administrative departments of the SAFE to
the assessment teams of the SAFE on the assessment of the banks within their jurisdiction. The score under each item on the form is the total of the single assessment
indicators of all the branches within the jurisdiction of the same bank. In particular, the scores for the assessment indicators under the item of business compliance (exclusive
of the separate assessment indicators for the head offices of the banks) shall be adjusted based on the amount of business at each bank as well as in accordance with the
requirements stated in paragraph 2 of Article 9 in these Measures. Items 1,2,3,4 are the subtotals based on the content of the assessment. If the separate assessment indicators
62
for the head offices of the banks are included in the subtotals, the scores shall be calculated according to the relevant formula in paragraph 3 of Article 9 in these Measures; 5.
Represents the total points for the preceding four items.
2. “Category” means the classification to which the banks belong: 1. policy banks, 2. national commercial banks, 3. foreign-funded banks, 4. others. Specifically, policy
banks refer to the China Development Bank, Export-Import Bank of China, and Agricultural Development Bank. National commercial banks refer to the Industrial and
Commercial Bank of China, China Construction Bank, Bank of China, Agricultural Bank of China, Bank of Communications, China Merchants Bank, China Minsheng
Banking Corp., Ltd., Shanghai Pudong Development Bank, China Citic Bank, China Everbright Bank, Hua Xia Bank, Industrial Bank, Guangdong Development Bank,
Shenzhen Development Bank, Evergrowing Bank, China Zheshang Bank, Postal Savings Bank of China, and Bohai Bank. Foreign-funded banks refer to wholly
foreign-funded banks, Sino-foreign equity joint banks, and branches of foreign banks. Others include but are not limited to city commercial banks, rural commercial banks,
and rural cooperative financial institutions. The person who completes this form needs only to fill in the number in each category.
Schedule 3
Summary Statement on the Assessment of Banks' Implementation of Regulations on Foreign
Exchange Administration
Reporting entity:
Reporting date:
No. of banks within
the jurisdiction
No. of
head
Average
offices
Item
(incl.
No. of
primary
first-tier
reporting
branches
score of
the bank
assessment
Name of
highest-scoring
bank
Name of
Score
lowest-scoring
bank
bank of
the
branches
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Score
No.
No.
No.
No.
No.
of
of
of
of
of
banks
rated
%
banks
rated
%
banks
rated
%
banks
rated
%
banks
rated
grade
grade
grade
grade
grade
A
B+
B
B-
C
%
of a
foreign
bank)
Summary of
banks
Of which,
policy banks
National
commercial
banks
Foreign-owned
banks
Others
Operated by:
Tel:
Reviewed by:
Tel :
Note: This form is the appendix to the report submitted by the assessment teams of the branches and foreign exchange administrative departments of the SAFE to the
assessment teams of the SAFE on the assessment of the banks within their jurisdiction.
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