General

The People's Bank of China recently issued relevant notices to further play the role of cross-border RMB settlement business in serving the real economy and promoting trade and investment facilitation, and support banks and payment institutions to better serve the development of new forms of foreign trade.

It is understood that the "Notice on Supporting Cross-border RMB Settlement in New Formats of Foreign Trade" issued by the People's Bank of China has increased support for new formats of foreign trade, and improved relevant policies for cross-border RMB business in new formats of foreign trade such as cross-border e-commerce. The circular expands the scope of cross-border business of payment institutions from trade in goods and services to current items, clarifies the business development and filing requirements for banks, payment institutions and other relevant business entities, as well as business authenticity review, anti-money laundering, and anti-terrorist financing. , anti-tax evasion and data reporting requirements, compact the business development responsibilities of banks and payment institutions, and prevent and control business risks.

According to a relevant person from the People's Bank of China, the notice will be implemented from July 21, 2022. The People's Bank of China will steadily promote the implementation of relevant policies, provide good supporting financial services for market players of new foreign trade formats, support and guide the healthy and sustainable innovation and development of new formats and models of foreign trade, and help stabilize the macroeconomic market.