Article 2 The People's Bank of China (hereinafter referred to as the People's Bank) and its branches, and the State Administration of Foreign Exchange (hereinafter referred to as the SAFE) and its branches are the supervision and administration organs of the foreign exchange settlement and sale business of designated foreign exchange banks. The market access and exit of foreign exchange settlement and sale business shall be examined and approved by the People's Bank of China jointly with the foreign exchange bureau, and the daily supervision of foreign exchange settlement and sale business, the verification and adjustment of turnover position of foreign exchange settlement and sale, and off-site inspection shall be implemented by the foreign exchange bureau jointly with the People's Bank of China. The foreign exchange bureau has the right to veto the application for settlement and sale of foreign exchange by financial institutions and suspend or cancel the qualification of illegal designated foreign exchange banks for settlement and sale of foreign exchange.
Article 3 The meanings of the following terms in these Interim Measures are:
(1) Designated foreign exchange banks refer to financial institutions approved by the People's Bank of China to engage in foreign exchange settlement and sale, including Chinese-funded financial institutions and foreign-funded financial institutions. Chinese-funded financial institutions refer to policy banks, wholly state-owned commercial banks, joint-stock commercial banks and their branches, urban and rural commercial banks and other approved financial institutions; Foreign-funded financial institutions refer to foreign banks, branches of foreign banks, joint venture banks and other approved financial institutions as mentioned in the Regulations of People's Republic of China (PRC) on the Administration of Foreign-funded Financial Institutions.
(2) The foreign exchange settlement and sale business for customers refers to the exchange business between RMB and freely convertible currencies handled by designated foreign exchange banks for customers.
(3) Self-settlement and sale of foreign exchange refers to the exchange between RMB and freely convertible currencies generated by designated foreign exchange banks due to their own business needs.
(4) The turnover position of foreign exchange settlement and sale refers to the funds held by the designated foreign exchange banks with the approval of the foreign exchange bureau and used exclusively for the turnover of foreign exchange settlement and sale, including the specific amount and the specified floating range.
Article 4 Financial institutions engaged in foreign exchange settlement and sale business must obtain the qualification of designated foreign exchange banks with the approval of the People's Bank of China; Non-designated foreign exchange banks may not engage in foreign exchange settlement and sale.
Article 5 Designated foreign exchange banks shall abide by these Interim Measures and other provisions on the management of foreign exchange settlement and sale business when handling foreign exchange settlement and sale business with customers and their own foreign exchange settlement and sale business, and conduct management and statistics respectively.
Article 6 Designated foreign exchange banks shall abide by the provisions on the management of turnover positions of foreign exchange settlement and sale, and make up the positions of foreign exchange settlement and sale exceeding the limit through the inter-bank market in time. Without the approval of the foreign exchange bureau, it is not allowed to hedge the demand for foreign exchange settlement and sale of its own capital and financial projects.
Article 7 Designated foreign exchange banks shall set up independent accounts for settlement and sale of foreign exchange. Under the account of foreign exchange settlement and sale, we should distinguish foreign exchange settlement and sale with customers, foreign exchange settlement and sale with ourselves, foreign exchange settlement and sale positions in the system and foreign exchange settlement and sale positions in the market, and account for them separately.
Article 8 Designated foreign exchange banks shall establish a retention system for settlement and sale of foreign exchange documents, and keep relevant documents according to their settlement and sale business with customers and their own settlement and sale business, with a retention period of not less than 5 years.
Article 9 Designated foreign exchange banks shall timely and accurately submit the data of foreign exchange settlement, sale and turnover position as well as other relevant statements and materials as stipulated by the foreign exchange bureau.
Article 10 Designated foreign exchange banks shall implement a filing system for large-value foreign exchange settlement and sale transactions.
Article 11 The foreign exchange bureau shall implement the systems of examination, questionnaire and so on. The person in charge of the foreign exchange settlement and sale business of the designated foreign exchange bank (department manager or competent president).