CoinVoice has recently learned that, according to 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 foreign exchange activities, and maintain the order of the foreign exchange market, the State Administration of Foreign Exchange has formulated the (Measures for the Management of Foreign Exchange Risk Trading Reports by Banks (Trial)) (hereinafter referred to as the (measures)) based on the (Measures for the Management of Foreign Exchange Business by Banks (Trial)) (hereinafter referred to as the (business measures)) and relevant laws and regulations.
According to the (measures), if a bank discovers or has reasonable grounds to suspect that its domestic and foreign institutions and individual clients (hereinafter referred to as transaction entities) are engaged in foreign exchange risk trading activities, it should 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, fraudulent export tax refunds, illegal cross-border financial activities involving 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 should promptly submit foreign exchange risk trading reports to the State Administration of Foreign Exchange through their headquarters or institutions designated by their headquarters.