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24 August 2018
On 27 July 2018 the People's Bank of China (PBOC) issued a notice to strengthen the provision of cross-border financial network and information services. The notice took effect on its date of issuance.
For the purposes of the notice, 'cross-border financial network and information services' refers to cross-border financial information transmission services provided by overseas entities to domestic users through specialised financial networks and specific messaging standards.
The notice aims to maintain the security of cross-border financial network and information services and prevent systemic financial risks. It includes a number of compliance requirements concerning the provision and use of such services, including with regard to:
Under the notice, overseas providers of cross-border financial network and information services to domestic users should:
Overseas providers may authorise their domestic institutions to perform the above reporting obligations.
According to the notice, overseas providers cannot build a specialised financial network in China to provide cross-border financial network and information services.
With respect to using the cross-border financial network and information services of overseas providers, domestic users should:
The notice grants the Payment & Clearing Association of China authority to oversee industry self-discipline with regard to cross-border financial network and information services. It stipulates that both overseas providers and domestic users should join the association.
For further information on this topic please contact Wu Jiejiang at Jingtian & Gongcheng by telephone (+86 10 5809 1000) or email (email@example.com). The Jingtian & Gongcheng website can be accessed at www.jingtian.com.
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