According to ChainCatcher news, as shown on the website of the State Administration of Foreign Exchange of China, in order to better coordinate development and security, ensure the facilitation of cross-border trade and investment, prevent and curb illegal activities related to foreign exchange, and maintain the order of the foreign exchange market, the State Administration of Foreign Exchange has formulated the (Measures for the Administration of Foreign Exchange Risk Trading Reports of Banks (Trial)) (hereinafter referred to as the (measures)) based on the (Administrative Measures for Banks' Foreign Exchange Business (Trial)) (hereinafter referred to as the (business measures)) and related laws and regulations.
According to the (measures), if the bank discovers or has reasonable grounds to suspect that its domestic and foreign institutional and individual clients (hereinafter collectively referred to as transaction subjects) are engaged in foreign exchange risk trading activities, it shall monitor foreign exchange risk trading information and submit a foreign exchange risk trading report.
Foreign exchange risk trading activities refer to those involving suspected false trade, false investment and financing, underground banks, cross-border gambling, fraudulently obtaining export tax rebates, illegal cross-border financial activities of virtual currencies, and other suspected illegal cross-border capital flow activities; foreign exchange risk trading information refers to information related to foreign exchange risk trading activities. Banks shall timely submit foreign exchange risk trading reports to the State Administration of Foreign Exchange through their headquarters or designated institutions.