Two departments: Promoting the integrated local and foreign currency fund pool business of multinational companies throughout the country

The Zhitong Finance App learned that on December 26, the People's Bank of China and the State Administration of Foreign Exchange jointly issued the “Notice Concerning Matters Relating to Multinational Companies' Local and Foreign Currency Integrated Fund Pool Business” to promote multinational companies' local and foreign currency integrated fund pool business nationwide. The contents of the “Notice” include: First, establishing a policy framework for integrated local and foreign currency fund pools. Integrate local and foreign currency fund pool business into unified management, and encourage enterprises to carry out fund pool business in local currency. At the same time, it is clear that each local branch office of the State Administration of Foreign Exchange will handle the filing and registration of capital pool business for enterprises, etc., to reduce the “foot costs” of enterprises.

The second is to facilitate the cross-border collection and transfer of funds by multinational companies. Set a centralized amount of foreign debt and overseas loans linked to the equity of the owners of the member companies in the capital pool to support multinational companies to allocate and use funds independently and efficiently within the quota. The third is to improve the supervision and management of the fund pool business during and after the fact. Clarify the rules for handling capital pool operations of multinational companies and cooperative banks, and require local branches of the People's Bank of China and branch offices of the State Administration of Foreign Exchange to strengthen statistical monitoring, carry out off-site inspections and on-site inspections, and effectively prevent the risk of cross-border capital flows.

In the next step, the People's Bank of China and the State Administration of Foreign Exchange will continuously optimize the cross-border fund management policies of multinational companies, raise the level of facilitation of cross-border trade and investment and financing, and help the high-quality development of the real economy of financial services.

The original text is as follows:

People's Bank of China State Administration of Foreign Exchange

Notice on matters relating to multinational companies' local and foreign currency integrated fund pool business

The Shanghai headquarters of the People's Bank of China, branches of each province, autonomous region, municipality directly under the Central Government and planned separate city branches of the State Administration of Foreign Exchange, China Development Bank, various policy banks, state-owned commercial banks, postal savings banks of China, and various joint stock commercial banks:

In order to further facilitate the collection and use of capital by multinational corporate groups, deepen high-level financial openness, and support the high-quality development of the real economy, the People's Bank of China and the State Administration of Foreign Exchange decided to promote the integrated domestic and foreign currency fund pool business of multinational companies throughout the country on the basis of summing up the pilot experience in some regions in the early stages. The relevant matters are hereby notified as follows.

1. The multinational corporation referred to in this notice refers to an enterprise consortium composed of domestic and foreign parent companies, subsidiaries, participating companies, and other member enterprises or institutions using capital links as links. Multinational companies' local and foreign currency integrated fund pool business (hereinafter referred to as fund pool business) refers to multinational companies centrally operating and managing domestic and foreign currency funds according to their own operating and management needs, and carrying out operations such as fund collection and surplus transfer, centralized payment of current account funds, and net settlement of margin differences.

Financial institutions, local government financing platform companies, and real estate companies are not allowed to participate in capital pooling operations, with the exception of finance companies acting as hosts.

2. Member companies refer to domestic and foreign companies and their branches that participate in capital pool business, have direct or indirect shareholding relationships within multinational companies, or are controlled by the same parent company as the host enterprise. A multinational company designates a domestic member enterprise with independent legal personality as the host company, which is responsible for carrying out the main business filing, implementation, data reporting, and situation feedback.

3. Multinational companies that carry out capital pooling business must meet the following conditions:

(1) Have real business needs.

(2) It has a perfect cross-border fund management structure and internal control system.

(3) Establish a corresponding electronic internal management system.

(4) The total balance of payments of all domestic member enterprises in the previous year was not less than the equivalent of 7 billion yuan, the total revenue of all domestic member enterprises in the previous year was not less than 10 billion yuan, and the total revenue of all overseas member enterprises in the previous year was not less than the equivalent of 2 billion yuan.

(5) There have been no major cross-border payment business violations in the past two years. Enterprises established less than two years ago have not committed major cross-border payment business violations since the date of establishment.

(6) Where the host enterprise and other member enterprises are on the trade foreign exchange balance list, the classification results for trade in goods shall be Class A.

(7) The total number of domestic and foreign member enterprises shall not be less than three.

(8) If an overseas member enterprise is established for domestic enterprise investment, it shall comply with the country's regulations relating to overseas investment.

(9) Domestic member companies have not been included in the key supervision list for cross-border RMB business.

When the goods trade classification results of the host enterprise are downgraded to Class B or C, the branch office of the State Administration of Foreign Exchange where the host enterprise is located notifies the multinational company to change the host company; when the goods trade classification results of other member companies are downgraded to Class B or C, the host enterprise shall terminate its business and change the member enterprise in accordance with Section 6 of this Notice.

If the host company is a finance company, it shall also comply with the regulations of the industry management department.

4. Multinational companies shall select domestic banks within the provincial region where the host enterprise is located that meet the following conditions as cooperative banks (hereinafter referred to as cooperative banks) to handle fund pooling operations:

(1) Has international settlement capabilities and foreign exchange settlement business qualifications, and has carried out bank foreign exchange business compliance and prudential management assessments of Class B (inclusive) or above in the past two years.

(2) There have been no major offenses in carrying out cross-border payment and foreign exchange settlement business in the past two years.

(3) There are complete internal anti-money laundering control systems and measures, and there are no major flaws in fulfilling anti-money laundering obligations.

(4) Other prudential supervision conditions stipulated by the People's Bank of China and the State Administration of Foreign Exchange.

Cooperative banks that do not meet the above requirements in continuing operations can only handle registered business for customers that have already carried out fund pool business, and must not add new business categories or new fund pool customers to original fund pool customers.

5. To carry out capital pooling business, multinational companies should apply for filing registration with the branch office of the State Administration of Foreign Exchange (hereinafter collectively referred to as the provincial branch office of the State Administration of Foreign Exchange) of the host enterprise's province, autonomous region, municipality directly under the Central Government and planned separate city. Application materials may be submitted by the host enterprise or a cooperative bank commissioned by the host enterprise to the branch office of the State Administration of Foreign Exchange where the host enterprise is located. Application materials include:

(1) Basic materials.

1. The application includes the basic situation of the multinational company and host enterprise, the type of business to be carried out, the balance of payments in local and foreign currency of all domestic and foreign member companies for the previous year, the audited operating income situation of all domestic and foreign member companies, the cross-border payment business violation situation in the past two years, the list of domestic and foreign member companies, the shareholding structure and classification of goods trading enterprises, the compliance status of domestic enterprises investing in the establishment of overseas member enterprises, the status of banks to be selected, the cross-border fund management structure, internal control management and system construction status, etc.

2. A letter of authorization from a multinational company to carry out capital pooling business for the host company.

3. Fund pool business agreements signed by the host company with other member companies or proof issued by a multinational company that clearly states the rights and obligations of each party and that all parties agree to.

4. The “Multinational Corporations' Local and Foreign Currency Integrated Fund Pool Business Processing Confirmation” signed by the host company and the partner bank (see Annex 1).

5. A copy of the business license of the host company and other domestic member companies.

6. Registration documents for overseas member companies. If the registration documents are not in Chinese, a Chinese translation must also be provided.

7. If the host company is a finance company, it must provide a financial business license and business scope approval documents.

8. Authorization letter from the host company to entrust the partner bank to handle the filing and registration (if any).

The material in item 2 above shall be stamped with the official seal of the multinational company (if any), the material in item 3 shall be stamped with the official seal of the host enterprise and other member companies or multinational companies (if any), and the rest of the materials shall be stamped with the official seal of the host enterprise.

(2) Special materials.

1. Those applying for centralized management of foreign debt amounts: The list in the application form indicates the names of domestic member enterprises participating in the concentration of foreign debt amounts, the place of registration, the audited shareholders' equity status of each domestic member enterprise for the previous year, the amount of foreign debt to be concentrated, and a copy of the previous year's balance sheet of the member enterprise contributing to the foreign debt amount is provided.

2. Those applying for centralized management of overseas loan amounts: The list in the application form indicates the names of domestic member enterprises participating in the concentration of overseas loan amounts, the unified social credit code, the place of registration, the audited shareholders' rights status of each domestic member enterprise for the previous year, the proposed centralized overseas loan amount, and a copy of the previous year's balance sheet of the member enterprise contributing to the overseas loan amount.

3. Those applying for centralized payment of current account funds and net margin settlement: The list in the application form indicates the name, unified social credit code, and place of registration of domestic member enterprises participating in the centralized payment of current account funds and net margin settlement.

All of the above special materials shall be stamped with the official seal of the host company.

(3) If the basic materials and special materials mentioned above are unclear, inaccurate, etc., and the content needs to be verified, the provincial branch office of the State Administration of Foreign Exchange may request the completion of the application materials or written explanations.

The provincial branch office of the State Administration of Foreign Exchange, together with the local branch of the People's Bank of China, reviewed the application materials, completed the filing procedure, and issued a notice of registration (see Annex 2).

The host company shall open a domestic capital master account and actually carry out fund pool business within one year after issuing the notice of registration; otherwise, the filing notice expires one year after the filing notice is issued.

6. If the following changes occur during the capital pool business of a multinational company, the host enterprise shall apply to the provincial branch office of the State Administration of Foreign Exchange for registration of the change within 30 days from the date of the change. The application materials may be submitted by the host enterprise or a cooperative bank commissioned by the host enterprise to the branch office of the State Administration of Foreign Exchange where the host enterprise is located. Application materials include:

(1) Changes in partner banks:

1. Change the partner bank application, including the status of the partner bank to be selected, the processing method of the original account balance, etc.

2. Original account balance statement with an official banking seal (no need to provide additional partner banks).

3. The “Multinational Corporations' Local and Foreign Currency Integrated Fund Pool Business Processing Confirmation” signed by the host company and the partner bank after the change.

(2) Where there is a change in the host enterprise, type of business, foreign debt, foreign loan amount, etc., please refer to Article 5 of this Notice to submit materials relating to the changes.

The provincial branch office of the State Administration of Foreign Exchange shall, in accordance with relevant regulations, work with the local People's Bank of China branch to review the change application materials, complete the change filing procedure, and issue a change filing notice.

If a member company changes that do not involve foreign debt or foreign loan amounts, the host company shall report to the partner bank within 30 days from the date of the change, and also submit a copy of the filing notice, a statement of the relevant circumstances of the enterprise involved in the change, and supporting documents relating to the changed matters (such as the changed business license, etc.). Cooperating banks complete change procedures in the banking version of the “Digital Outsourcing” platform and the relevant modules of the RMB Cross-border Payment Information Management System (RCPMIS) according to the host company's application.

7. Where a multinational company intends to stop handling the fund pool business, the host enterprise shall apply to the provincial branch office of the State Administration of Foreign Exchange for cancellation registration after processing the relevant claims and debts and closing the main domestic capital account. The application materials may be submitted by the host enterprise or a cooperative bank commissioned by the host enterprise to the branch office of the State Administration of Foreign Exchange where the host enterprise is located. Application materials include:

(1) The application includes circumstances relating to the concentration of foreign debt amounts and overseas loan amounts for fund pooling operations, foreign-related payments and foreign exchange transactions, and the closure of domestic capital master accounts.

(2) The original filing notice.

The provincial branch office of the State Administration of Foreign Exchange shall, in accordance with relevant regulations, work with the local People's Bank of China branch to review the cancellation application materials, complete the cancellation filing procedure, and withdraw the original filing notice.

8. Multinational companies shall comply with the following requirements when carrying out foreign debt concentration business:

(1) The foreign debt risk weighted balance of a multinational corporation at any point in time shall not exceed its concentrated foreign debt amount.

Foreign debt concentration amount of multinational companies = (the host company's audited shareholders' equity for the previous year+Sigma's domestic member companies' audited shareholders' equity for the previous year* concentration ratio) * cross-border financing leverage ratio* macroprudential adjustment parameters.

Multinational companies' external debt risk weighted balance = sigma foreign currency external debt balance+sigma foreign currency external debt balance* exchange rate risk conversion factor.

In the initial period, the leverage ratio for cross-border financing was 2, the macroprudential adjustment parameter was 1.75, and the exchange rate risk conversion factor was 0.5.

The finance company, as the host enterprise, shall not participate in the concentration of foreign debt amounts.

(2) Domestic member enterprises may decide on their own partial concentrated foreign debt amounts and adjust them at most once a year. For foreign debt amounts that have not been concentrated, member companies can handle foreign debt business through their own external debt accounts in accordance with relevant regulations.

(3) Within the centralized amount of external debt, if the host enterprise borrows foreign debt itself as the actual borrower, or uses a member enterprise as the actual borrower to borrow foreign debt on its behalf, it shall be processed through the host enterprise's domestic capital master account.

In principle, the currencies for foreign-related payments under the foreign debt concentration business shall be consistent, and cross-currency arbitrage between RMB and foreign currencies shall not be carried out.

(4) After the filing notice is issued, the branch office of the State Administration of Foreign Exchange where the host enterprise is located shall apply for a one-time foreign debt registration for the host enterprise in accordance with the registered foreign debt concentration amount in the relevant information system of the State Administration of Foreign Exchange.

9. Multinational companies carrying out overseas loan concentration business shall comply with the following requirements:

(1) The risk-weighted balance of overseas loans of multinational companies at any point in time shall not exceed the concentrated amount of their overseas loans.

Overseas loan concentration amount for multinational companies = (the host company's audited shareholders' equity for the previous year+the domestic member companies' audited previous year* concentration ratio) *overseas loan leverage ratio* macroprudential adjustment factor for overseas loans.

Multinational companies' overseas loan risk weighted balance = sigma foreign currency overseas loan balance+sigma foreign currency overseas loan balance* currency conversion factor.

In the initial period, the leverage ratio for overseas loans was 1, the macroprudential adjustment factor for overseas loans was 0.8, and the currency conversion factor was 0.5.

Finance companies, as host companies, shall not participate in the concentration of overseas loan amounts.

(2) Domestic member enterprises can determine the concentration ratio of overseas loan amounts on their own, and adjust them at most once a year. For overseas loan amounts that have not been concentrated, member companies can handle overseas loan services through their own special overseas loan accounts in accordance with relevant regulations.

(3) Within the centralized overseas loan amount, if the host enterprise uses itself as the actual lender to make overseas loans or uses a member enterprise as the actual lender to make overseas loans on its behalf, it shall process it through the host enterprise's domestic capital master account.

In principle, the currencies for foreign-related payments under the overseas loan amount concentration business shall be consistent, and cross-currency arbitrage between RMB and foreign currencies shall not be carried out.

Overseas loan funds must not be used in violation of relevant national laws and regulations, must not circumvent the administrative requirements of foreign direct investment, securities investment, etc. in disguise, and must not be directly or indirectly used for expenses outside the scope of the borrower's business.

(4) After the filing notice is issued, the branch office of the State Administration of Foreign Exchange where the host enterprise is located shall register a one-time overseas loan amount for the host enterprise in accordance with the registered centralized amount of overseas loans in the relevant information system of the State Administration of Foreign Exchange.

10. Multinational companies carrying out centralized payment of current account funds or net margin settlement business shall comply with the following requirements:

Centralized payment of current account funds means that the host enterprise centrally acts on behalf of domestic member enterprises to handle current account income and expenditure through a domestic capital master account.

Net current account margin settlement refers to a method of operation where the host enterprise centrally accounts for funds receivable and payable under the current account of its domestic and foreign member companies and consolidates payment transactions within a certain period of time into a single transaction. In principle, the net rolling margin is settled no less than once every natural month.

Multinational companies can handle centralized payment of current account funds or net margin settlement services through host companies according to business needs. After the filing notice is issued, the branch office of the State Administration of Foreign Exchange where the host enterprise is located shall register the host enterprise's current account fund concentration and margin settlement income and expenditure business in the relevant information system of the State Administration of Foreign Exchange.

According to regulations, domestic member enterprises shall handle business with the “Goods Trade Foreign Exchange Business Registration Form” in accordance with relevant regulations, and shall not participate in centralized payment of current account funds and net settlement of margin balances.

If a multinational company ceases to handle centralized payment of current account funds and net margin settlement services, the host company shall notify the partner bank within 30 days after the suspension, and report to the branch office of the State Administration of Foreign Exchange where it is located, either by itself or by entrusting the partner bank.

11. Cooperative banks can apply high-quality enterprise trade foreign exchange facilitation policies, high-level open cross-border trade pilot, and higher level trade and investment facilitation pilot measures (hereinafter referred to as facilitation policies) when handling centralized current account fund payments and net margin settlement services for multinational corporate capital pool hosts and other member enterprises that meet the following conditions:

(1) Cooperative banks shall be pilot banks that meet the requirements of corresponding facilitation policies.

(2) In principle, enterprises hosting multinational capital pools and other member enterprises are high-quality enterprises piloting corresponding facilitation policies, with the exception of those that host enterprises are finance companies or have no foreign trade-related income or expenditure themselves.

Multinational company host enterprises and other member enterprises shall abide by the relevant provisions of the facilitation policy when carrying out foreign exchange business with centralized payment of current account funds and net settlement of margin balances, and indicate “pilot trade facilitation” or “high-level facilitation pilot” in the notes to the foreign exchange data submission transaction.

12. The host enterprise shall open a domestic capital master account with the partner bank to handle the fund pool business. At the same time, according to business needs, you can select an overseas member company, open a domestic foreign exchange or RMB account (NRA account) with an overseas institution with a partner bank, and centrally operate and manage the funds of the overseas member enterprise.

Domestic capital master accounts can be multi-currency (including RMB) accounts. There is no limit on the number of accounts opened, but they should meet prudential supervision requirements; domestic capital master accounts allow day and overnight overdrafts; overdraft funds can only be used for external payments, and priority should be given to repayment of overdraft funds after receiving funds.

13. The domestic capital main account income and expenditure range is as follows:

(1) Income range.

1. Current account income of domestic member companies.

2. Transfer of funds from domestic member companies' RMB bank settlement accounts (except RMB foreign debt fund deposit accounts that do not participate in the concentration), current account accounts, capital fund accounts, and capital project settlement accounts.

3. Foreign debt incorporated within the centralized amount and principal and interest recovered from overseas loans.

4. Foreign exchange purchase deposit (funds obtained from foreign exchange purchases, overseas loans, or repayment of foreign debt under the current account).

5. Deposit principal and interest.

6. Funds transfer income from other domestic capital master accounts of the same host enterprise.

7. Other income as specified by the People's Bank of China and the State Administration of Foreign Exchange.

Unless otherwise stipulated, foreign exchange loans borrowed by domestic member enterprises of multinational companies from domestic depository financial institutions shall not enter the main domestic capital account, except for repayment of foreign debt, overseas loans, import remittance payments, etc.

(2) Scope of expenditure.

1. Current account expenses of domestic member companies.

2. Transfer to domestic member companies' RMB bank settlement accounts, current account accounts, capital fund accounts, and capital project settlement accounts.

3. Concentrate domestic and foreign loans and repayment of foreign debt principal and interest.

4. Remittance is used for domestic expenses that meet the requirements.

5. Deposit transfer.

6. Pay the deposit reserve.

7. Other domestic capital master account fund transfer expenses of the same host enterprise.

8. Other expenses specified by the People's Bank of China and the State Administration of Foreign Exchange.

14. Foreign debt funds borrowed by the host enterprise through the main domestic capital account do not violate relevant regulatory rules. If the member company makes its own payments, RMB foreign debt funds can be transferred from the domestic capital master account to the member companies' domestic RMB bank settlement account, and foreign currency foreign debt funds can be directly transferred from the domestic capital master account to the member enterprise's foreign debt account to handle related business.

15. The main domestic capital account can centrally handle foreign exchange settlement under current, direct investment, foreign debt, and overseas loans.

Foreign exchange funds collected by domestic member companies (including foreign exchange capital, capital project settlement account funds) under the host company's foreign direct investment account, as well as foreign currency foreign debt funds incorporated within the registered centralized amount and recovered foreign currency foreign loan principal and interest can go through settlement procedures in the domestic capital master account according to the desired settlement method or payment settlement method. RMB funds obtained from settlement may not enter the capital project-settlement account to be paid, and are still stored in the domestic capital master account.

16. When processing the payment and use of capital project income in the main account of domestic capital, the host enterprise can directly process it with the partner bank on the premise that the transaction involved is true and compliant, and there is no need to provide proof of authenticity to the partner bank one by one in advance.

17. The host enterprise can handle centralized local and foreign currency payment services between overseas member enterprises and overseas entities through a domestic capital master account. This business takes up the host company's registered foreign debt concentration amount (see Annex 3 for operating rules).

18. The opening of a domestic capital master account and the use of funds shall comply with the relevant regulations of the People's Bank of China and the State Administration of Foreign Exchange, and the domestic use of funds under capital collected in the main account of domestic capital shall comply with the administrative requirements relating to the negative list of capital project income use.

19. The host company carries out current account payments and foreign exchange settlement through the main domestic capital account, including centralized payments and net margin settlement, etc. Cooperating banks shall complete the relevant formalities in accordance with the principles of the exhibition business. Where the nature of the funds is unclear, the partner bank shall require the host company to provide relevant documents. Foreign payments for items such as trade in services are still required to submit a paper or electronic tax filing form in accordance with regulations.

In accordance with relevant regulations, the host company shall go to the branch office of the State Administration of Foreign Exchange where it is located to complete the registration procedure for business with the “Goods Trade and Foreign Exchange Business Registration Form”.

The host company and other domestic member enterprises shall promptly and accurately report on trade credit, trade finance, etc. through the “Digital Outsourcing” platform's Internet-based goods trade-related modules in accordance with the foreign exchange management regulations for trade in goods.

20. When integrating and repaying foreign debt funds through the main account of domestic capital, financing and recovering overseas loan funds, processing centralized payment of current account funds or net margin settlement, etc., the host enterprise shall make statistical reports on foreign-related payments and payments in strict accordance with relevant regulations and submit relevant account information.

When processing domestic transfers of businesses such as centralized payment of funds under current accounts or net margin settlement through a domestic capital master account, the host enterprise shall report actual domestic transfer payment data and restoration data in accordance with the relevant regulations on reinstatement declarations for foreign-related payments.

Where the host enterprise is a finance company or designated reporting entity, it shall also make statistical reports on external financial assets, liabilities and transactions.

21. Cooperative banks shall jointly develop management systems for capital pool operations with multinational companies, including but not limited to business models, operating procedures, internal control systems, organizational structures, system construction, risk prevention and control measures, data monitoring methods, and technical service guarantee plans, etc., and keep them for inspection.

Cooperative banks shall earnestly fulfill the data reporting obligations of the RMB Cross-border Payment Information Management System, and promptly, completely and accurately submit basic information on fund pool operations, domestic and foreign currency cross-border payments, accounts and balances to the RMB Cross-border Payment Information Management System.

Cooperating banks shall review business data submitted by enterprises and submit relevant account information, foreign-related payment statistics reports, domestic fund transfers, and foreign exchange settlement data in a timely, complete and accurate manner in accordance with regulations.

Cooperating banks and host companies shall each keep relevant documents and documents that fully prove the truth and legality of their transactions for five years for inspection.

Cooperative banks are required to establish monitoring and evaluation mechanisms, regularly evaluate fund pool operations, and assist in off-site monitoring. When handling fund pool business, authenticity and compliance reviews should be carried out in accordance with exhibition principles such as “understanding the customer,” “understanding the business,” and “due diligence,” and effectively fulfilling anti-money laundering obligations. Any abnormal situation is promptly reported to the local branch of the People's Bank of China and the branch office of the State Administration of Foreign Exchange.

22. Branches of the People's Bank of China and branches of the State Administration of Foreign Exchange should strengthen in-fact and ex post facto supervision of multinational companies' capital pool operations and effectively carry out management duties:

(1) Do a good job in guiding the business of banks and enterprises. Supervise banks to establish operating procedures and internal control systems to provide necessary technical service guarantees. If necessary, the host company may be requested to conduct a special audit of the compliance etc. of the fund pool business.

(2) Strengthen off-site monitoring and on-site inspection. Make full use of cross-border capital flow monitoring and analysis systems, capital project information systems, etc., to establish a list of multinational companies participating in the capital pool business, comprehensively analyze the foreign-related payments, foreign exchange settlement and account management situations related to the capital pool business, strengthen business monitoring and analysis, and carry out on-site inspections as appropriate.

(3) Conduct risk assessments on a regular or irregular basis. According to specific circumstances and evaluation results, multinational companies and partner banks with high business risks are interviewed, risk reminders are issued, or rectified within a limited period of time; cases are opened, investigated and punished for suspected violations.

23. Multinational companies and partner banks that carry out fund pool business in violation of this Notice, foreign exchange management, and cross-border RMB regulations shall be dealt with by the branch of the People's Bank of China and the branch office of the State Administration of Foreign Exchange where the host enterprise is located in accordance with the “People's Bank of China Law” and “Foreign Exchange Administration Regulations of the People's Republic of China” and other relevant laws and regulations.

24. In principle, multinational companies that carry out capital pooling business in accordance with this Notice shall not handle other cross-border capital pool services.

Where other cross-border fund pool services have been carried out and the fund pool business registration has been obtained in this notice, a one-year transition period shall be set. The clean-up of funds and accounts involved in other cross-border fund pool operations must be completed during the transition period. After the transition period is over, multinational companies will carry out capital pooling business in accordance with the provisions of this Notice.

25. This notice takes effect from the date it is issued.

The People's Bank of China plans to list branches in separate cities, provincial branches of the State Administration of Foreign Exchange in an appropriate manner to notify branches of the People's Bank of China and the State Administration of Foreign Exchange, urban commercial banks, foreign banks and other financial institutions within their jurisdiction to set up cross-border RMB business.

This article was edited from the official website of the People's Bank of China; Zhitong Finance Editor: Chen Xiaoyi.