Foreign Exchange Business

Corporate Foreign Exchange Demand Deposit

  Introduction

  The Corporate Foreign Exchange Demand Deposit refers to foreign exchange (“foreign exchange”) funds, denominated in a freely convertible currency, deposited in a corporate foreign exchange deposit account opened with BANK OF KUNLUN by entities incorporated in and beyond China or foreign institutions in China. The corporate foreign exchange deposit account may be a current or capital account.

  Function

  It facilitates foreign exchange payment and settlement; to safeguard funds of customers and generate interest income.

  Target Clients

  Corporate and institutional customers.

  Business Process

  1)  Open a foreign exchange current account

  a. Domestic entities meeting the following conditions may open a foreign exchange current account: Being authorized by or registered with competent authorities to launch foreign business or having foreign exchange proceeds under current accounts; Having foreign exchange proceeds from special sources and for prescribed purposes, such as donation, aid, and international postal remittance

  b. Domestic entities that apply to the State Administration of Foreign Exchange (SAFE) for opening a foreign exchange current account should provide the following documents:

  (1)  Account opening application

  (2) The original and a copy of the business license or registration certificate

  (3) The original and a copy of the permit of foreign business issued by the competent authorities, or the Certificate of Foreign Exchange Registration of Foreign-funded Enterprises, or documentary evidence of foreign exchange proceeds under current accounts (such as memo of foreign exchange sale)

  (4) The original and a copy of organizational code certificate

  (5) Others required by the SAFE

  Foreign institutions in China that apply to the State Administration of Foreign Exchange (SAFE) for opening a foreign exchange current account should provide the following documents:

  (1) Written approval of institution establishment issued by the competent authorities

  (2) Registration Certificate issued by the State Administration for Industry and Commerce

  Upon review and approval, the SAFE will issue the Approval for Opening of Foreign Exchange Current Account or the Foreign Exchange Account Registration Form for Foreign Institutions in China.

  c. Domestic operations of Chinese-funded entities open the account with BANK OF KUNLUN by presenting the Approval for Opening of Foreign Exchange Current Account and, ten days later, present the fourth copy of Approval for Opening of Foreign Exchange Current Account to the local office of the SAFE to obtain the Certificate of Foreign Exchange Account Use.

  Foreign-funded enterprises open the account with BANK OF KUNLUN by presenting the Approval for Opening of Foreign Exchange Current Account and the Certificate of Foreign Exchange Registration of Foreign-funded Enterprises.

  Foreign institutions in China open the account with BANK OF KUNLUN by presenting the Foreign Exchange Account Registration Form for Foreign Institutions in China.

  d. Domestic entities may open one foreign exchange current account with one bank in principle. Opening foreign exchange current accounts of the same nature but different currencies with one bank is not subject to additional approval by the SAFE.

  In regions where the foreign exchange account management information system is used, eligible domestic entities may apply to the SAFE for opening more than one foreign exchange current account, without any restriction on number of accounts and banks.

  2) Opening a foreign exchange capital account (except for B-share trading account)

  a. Domestic entities that apply to the SAFE for opening a foreign exchange capital account should provide the following documents:

  (1) Account opening application

  (2) For opening of loan accounts for disbursement and repayment respectively - the original of the loan contract and the foreign debt registration certificate or the Foreign Exchange Loan (On-lending) Registration Certificate; for opening of a special account for issuing foreign currency stocks - the prospectus approved by securities regulators and other related documents; for opening of a special account for assets realization - documents approved by the competent authorities, agreements and the plan for use of proceeds

  Foreign-funded enterprises apply for opening a capital account should provide the following documents:

  (1)  Account opening application

  (2) Certificate of Foreign Exchange Registration of Foreign-funded Enterprises and other related documents

  Foreign corporations or individuals that apply for opening a temporary special account should provide the following documents:

  (1) Account opening application

  (2) Remittance voucher or the letter of investment intent

  Upon review and approval, the SAFE issues the Notice of Account Opening.

  b. The applicant opens the account with BANK OF KUNLUN by presenting the Approval of the SAFE for Opening Foreign Exchange Account.

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