On September 29, the State Administration of Foreign Exchange notified 10 cases of foreign exchange violations in order to further improve the compliance level of banks' foreign exchange business and strengthen warning education.

A total of 52.156 million yuan was fined and confiscated in 10 cases.

　　This time, 10 typical cases of bank violations were publicly notified, involving cross-border guarantees, foreign exchange payments for overseas direct investment, trade in goods, and trade in services handled by 10 banks.

The reporter noticed that the 10 cases reported were all cases of illegal handling of capital outflows.

　　The person in charge of the relevant departments of the State Administration of Foreign Exchange pointed out that the violations of the bank mainly focus on the failure of due diligence, the provision of cross-border guarantees in violation of regulations, and the illegal handling of foreign exchange funds receipt and payment, foreign exchange settlement and sales and other businesses.

　　Judging from the reported punishment results, the subject of punishment covers policy banks, large state-owned commercial banks, joint-stock commercial banks, city commercial banks and foreign-funded banks, and the amount of fines ranges from hundreds of thousands to tens of millions of yuan.

Check out the case report:

　　Case 1: In March 2017, Hainan Branch of China Development Bank failed to fulfill its audit responsibilities and handled domestic guarantee overseas loan business in violation of regulations.

According to relevant regulations, the bank was warned and fined 42.6616 million yuan.

　　Case 2: From November 2017 to January 2019, the Shenzhen Futian Sub-branch of Agricultural Bank of China failed to fulfill its audit responsibilities and handled the foreign exchange payment business for trade financing in violation of regulations.

According to the relevant regulations, the bank was ordered to make corrections and fined 648,900 yuan.

　　Case 3: From January 2018 to April 2019, Yunnan Branch of Industrial and Commercial Bank of China failed to fulfill its audit responsibilities and handled foreign exchange payment for overseas direct investment in violation of regulations.

According to the relevant regulations, the bank was ordered to make corrections and fined 1.2317 million yuan.

　　Case 4: From April to June 2018, the Tianjin Hexi Sub-branch of China Construction Bank failed to fulfill its audit responsibilities and handled the offshore transfer of foreign exchange payment business in violation of regulations.

According to the relevant regulations, the bank was ordered to make corrections and fined 1.8361 million yuan.

　　Case 5: From April to November 2018, the Chengdu Branch of HSBC Bank (China) Co., Ltd. failed to fulfill its audit responsibilities and handled the domestic guarantee overseas loan business in violation of regulations.

According to relevant regulations, the bank was warned and fined 2.9748 million yuan.

　　Case 6: From September 2018 to January 2019, the Nanjing Xuanwu Sub-branch of the Bank of Communications failed to fulfill its audit responsibilities and handled the sea freight expenses for service trade in violation of regulations.

According to the relevant regulations, the bank was ordered to make corrections and fined 565,100 yuan.

　　Case 7: In March 2019, the Shanghai Branch of Bohai Bank failed to fulfill its audit responsibilities and handled the profit remittance business in violation of regulations.

According to the relevant regulations, the bank was ordered to make corrections and fined 568,500 yuan.

　　Case 8: From March to November 2019, Bank of China Yiwu Branch failed to fulfill its audit responsibilities and handled foreign exchange sales for trade in goods in violation of regulations.

According to the relevant regulations, the bank was ordered to make corrections and fined 849,400 yuan.

　　Case 9: In April 2019, Hua Xia Bank Suzhou Kunshan Sub-branch did not fulfill its audit responsibilities and handled profit remittance business in violation of regulations.

According to the relevant regulations, the bank was ordered to make corrections and fined 400,200 yuan.

　　Case 10: In January 2020, Bank of Inner Mongolia Erlianhot Branch failed to fulfill its audit responsibilities and handled the prepayment business in violation of regulations.

According to the relevant regulations, the bank was ordered to make corrections and fined 419,700 yuan.

Foreign Exchange Bureau: will strengthen foreign exchange supervision and inspection

　　Strictly and quickly investigate and deal with false and deceptive transactions

　　According to the "Regulations of the People's Republic of China on Foreign Exchange Administration" and relevant foreign exchange management regulations, financial institutions shall follow the principle of "knowing customers, understanding business, and due diligence" when handling foreign exchange settlement and sales and foreign exchange receipts and payments, verifying the background of customers and understanding the purpose of transactions The authenticity of transaction documents and the consistency with foreign exchange receipts and payments shall be reasonably reviewed, and problem transactions shall be reported in a timely manner.

　　The person in charge of the relevant departments of the State Administration of Foreign Exchange pointed out that in 2021, the foreign exchange inspection department will impose fines of 178 million yuan on banks for various foreign exchange violations in accordance with the law.

Bank violations mainly focus on failing to perform due diligence, providing cross-border guarantees in violation of regulations, and handling foreign exchange fund receipts and payments, foreign exchange settlement and sales in violation of regulations.

　　The reporter noticed that in the past two months, the foreign exchange bureau has notified a total of 20 cases of foreign exchange violations against banks and individuals.

　　The aforementioned person in charge stated that the SAFE will conscientiously implement the decisions and arrangements of the CPC Central Committee and the State Council, strengthen foreign exchange supervision and inspection while improving the level of trade and investment facilitation, and effectively maintain national economic and financial security.

Specifically:

　　First, pay close attention to changes in cross-border capital flows, increase off-site monitoring and inspection of key entities, channels and businesses, and investigate and deal with false and deceptive transactions strictly and quickly.

　　The second is to "reverse the case" in cases of foreign exchange violations such as underground banks and cross-border gambling, and resolutely investigate and punish financial institutions that provide cross-border channels or services for illegal financial activities with a "zero tolerance" attitude.

　　The third is to guide banks to further implement foreign exchange facilitation policies while preventing risks, create a favorable business environment, and allow more law-abiding market players to truly enjoy better services.