Interim Measures for the Administration of Foreign Currency Exchange Agencies

Article 1 In order to regulate the foreign exchange business of foreign exchange agencies and maintain market order, these Measures are formulated in accordance with the Law of the People's Republic of China on the People's Bank of China, the Regulations of People's Republic of China (PRC) on Foreign Exchange Control, the Regulations on the Administration of Settlement, Sale and Payment of Foreign Exchange and the Interim Measures for the Administration of Settlement and Sale of Foreign Exchange by Designated Foreign Exchange Banks. Article 2 The term "foreign currency exchange agency" as mentioned in these Measures refers to the domestic enterprise legal person agency (hereinafter referred to as the exchange agency) that has signed an agreement with domestic commercial banks and their branches (hereinafter referred to as banks) with foreign currency exchange (or foreign exchange settlement and sale) business qualifications and is authorized by banks to handle foreign currency exchange business. Article 3 The foreign currency exchange business handled by foreign currency exchange institutions is limited to freely convertible cash and traveler's checks.

Foreign currency exchange agencies handle foreign currency exchange business only for domestic residents and non-resident individuals to unilaterally convert foreign currency and foreign currency traveler's checks into RMB.

Non-resident individuals need to go to the authorized bank of the foreign currency exchange institution to convert RMB obtained from the foreign currency exchange institution into foreign currency, and the amount of conversion shall not exceed the original amount of foreign currency converted. The redemption period is 6 months from the date of redemption.

Individual residents are not allowed to handle redemption business. Article 4 The State Administration of Foreign Exchange and its branches shall supervise and manage the foreign currency exchange business of foreign currency exchange institutions authorized by banks according to law. Article 5 The head office of a bank shall formulate a unified management system and risk control system for entrusted foreign currency exchange business within the system.

Authorized banks shall formulate management regulations and operational procedures according to the management system and risk control system of the Head Office, including: foreign currency exchange quotation management of foreign currency exchange institutions, settlement management of foreign currency exchange business, collection, use, cancellation and verification of foreign currency exchange memo, risk control and responsibility sharing of exchange losses, dispute handling management, currency management of exchange business, RMB and foreign currency inventory limit management, exchange personnel management, etc. Article 6 When a bank entrusts a foreign exchange agency to handle foreign exchange business, it must sign a written agreement with the agency to entrust foreign exchange business, clearly define the rights and obligations of both parties and the principle of dispute settlement, and file it with the local branch of the State Administration of Foreign Exchange. The written agreement shall include the main contents such as the management regulations and operating procedures stipulated in Article 5 of these Measures. Before filing and confirmation, the exchange institution shall not handle foreign currency exchange business. Article 7 An authorized bank shall submit the following materials for filing procedures:

(1) Unified foreign exchange management system and risk control system entrusted by the head office;

(2) An application for authorizing a foreign exchange agency to handle foreign currency exchange business;

(3) Basic information of the exchange;

(4) Provisions on the administration of foreign currency exchange business;

(5) Signed written agreement on authorization of foreign currency exchange business;

(six) foreign currency exchange agency settlement memo and business seal sample;

(7) Other materials required by the State Administration of Foreign Exchange and its branches.

The local branch of the State Administration of Foreign Exchange shall, within 30 days from the date of receiving the above materials, give a confirmation or non-confirmation reply. If it is not confirmed, the reasons for not confirming shall be explained in the reply. If an authorized bank receives an unconfirmed reply from the local branch of the State Administration of Foreign Exchange, it shall not file a filing application with the same content again within 6 months from the date of receiving the reply. Article 8 The business premises of foreign currency exchange agencies shall, in principle, be located in densely populated ports, airports, stations, docks, tourist attractions, border port areas, major business districts, foreign-related hotels, etc. Article 9 A foreign currency exchange agency operating foreign currency exchange business shall meet the following conditions:

(1) Having the qualification of a domestic enterprise as a legal person;

(2) Having a fixed business place;

(3) Not less than 2 staff members who have been trained and qualified by authorized banks to engage in foreign currency exchange business;

(4) Having equipment or corresponding facilities that can accurately and timely receive foreign exchange quotations;

(5) Other conditions required by the authorized bank. Article 10 Foreign exchange agencies can only sign agreements with banks in the same city to handle foreign currency exchange business, and may not sign agreements with many banks or banks in different places to handle foreign currency exchange business.

The exchange institution may negotiate with the signing bank to establish a number of foreign currency exchange business places. Article 11 Where a bank terminates the entrustment of a foreign exchange agency to handle the foreign exchange business agreement, it shall file with the local branch of the State Administration of Foreign Exchange within 10 days after the termination of the agreement. Article 12 Foreign currency exchange institutions shall operate by listing. When handling foreign currency exchange business, the nameplate of "XX Bank (name of authorized bank) foreign currency exchange institution" must be hung in a prominent position in its business place. The nameplate style shall be stipulated by the authorized bank. Article 13 Foreign currency exchange institutions shall handle foreign currency exchange business in accordance with the regulations on the administration of foreign exchange quotations formulated by authorized banks, and publish the foreign exchange quotations in a prominent position in their business premises. Article 14 The foreign currency exchange business of foreign currency exchange institutions shall be accounted for separately. Article 15 Foreign currency exchange agencies must use foreign currency exchange memo when handling foreign currency exchange business, and may not replace foreign currency exchange memo with other documents. Foreign currency exchange memo is provided and managed by authorized banks.

The foreign currency exchange memo shall record the following contents, including but not limited to the following contents: customer name, customer nationality, certificate type and number, exchange date, foreign currency, foreign currency and RMB amount, foreign exchange quotation, etc.

The foreign currency exchange memo retained by the foreign currency exchange institution shall be signed by the customer and sealed by the handling personnel for confirmation. The foreign currency exchange memo used by the foreign currency exchange agency shall be in triplicate, one for the customer, one for the authorized bank and one for the foreign currency exchange agency for the account. Authorized banks and foreign currency exchange institutions shall keep the foreign currency exchange memo for 5 years for future reference.

When handling foreign currency exchange business for domestic residents, foreign currency exchange institutions should add the words "no exchange business" on the foreign currency exchange memo.