China Implements New Guidelines for Bank Forex Risk Management

According to PANews, China's State Administration of Foreign Exchange has announced the implementation of the "Trial Measures for the Management of Bank Forex Risk Trading Reports." Effective immediately, this document serves as a supplementary guideline to the "Trial Measures for the Management of Bank Forex Business," aiming to enhance banks' foreign exchange risk management. The measures focus on early identification, warning, and handling of high-risk transactions, including those related to suspected false trade, underground banks, and illegal cross-border financial activities involving virtual currencies. Key aspects of the guidelines include defining the responsibilities for reporting bank forex risk transactions and requiring the establishment of monitoring systems to submit reports. The scope of information to be reported encompasses activities suspected of illegal cross-border capital flows. The guidelines also specify the content of reports, such as basic information and proposed measures to address the risks. Additionally, they emphasize strengthening internal management measures, including internal control systems and confidentiality management of materials.