Order of the State Council of the People's Republic of China
No. 532

    The "Regulations on Foreign Exchange Management of the People's Republic of China" have been revised and passed at the 20th executive meeting of the State Council on August 1, 2008. The revised "Regulations on Foreign Exchange Management of the People's Republic of China" are hereby promulgated and shall come into effect from the date of promulgation.

Regulations on Foreign Exchange Management of the People's Republic of China
On January 29, 1996, Order No. 193 of the State Council of the People's Republic of China was issued. According to 1997
Decision of the State Council on Amending the Foreign Exchange Administration Regulations of the People's Republic of China on January 14th
Revised and approved at the 20th Executive Meeting of the State Council on August 1, 2008

general provisions

Article 1  In order to strengthen foreign exchange management, promote international balance of payments, and promote healthy development of the national economy, this regulation is formulated.
Article 2 The foreign exchange management departments of the State Council and their branches (hereinafter referred to as foreign exchange management agencies) shall fulfill their foreign exchange management responsibilities in accordance with the law and be responsible for the implementation of this Regulation.
Article 3 The foreign exchange referred to in these regulations refers to the following payment methods and assets expressed in foreign currency that can be used for international settlement:
（1） Foreign currency cash, including banknotes and coins;
（2） Foreign currency payment vouchers or payment tools, including bills, bank deposit vouchers, bank cards, etc;
（3） Foreign currency securities, including bonds, stocks, etc;
（4） Special Drawing Rights;
（5） Other foreign exchange assets.

Article 4 This regulation applies to the foreign exchange receipts and payments or foreign exchange business activities of domestic institutions and individuals, as well as the foreign exchange receipts and payments or foreign exchange business activities of overseas institutions and individuals within the territory.
Article 5 The state does not impose restrictions on regular international payments and transfers.
Article 6 The country implements a system of reporting international balance of payments statistics.
The foreign exchange management department of the State Council shall conduct statistics and monitoring of international balance of payments, and regularly publish the status of international balance of payments.
Article 7  Financial institutions engaged in foreign exchange business shall open foreign exchange accounts for customers in accordance with the regulations of the State Council's foreign exchange management department, and handle foreign exchange business through foreign exchange accounts.
Financial institutions engaged in foreign exchange business shall, in accordance with the law, report to the foreign exchange management authorities the foreign exchange receipts and payments and account changes of their clients.
Article 8 Foreign currency circulation is prohibited within the territory of the People's Republic of China, and foreign currency pricing and settlement are not allowed, except as otherwise stipulated by the state.
Article 9 The foreign exchange income of domestic institutions and individuals can be transferred back to China or deposited overseas; The conditions and deadlines for returning to China or storing abroad shall be stipulated by the foreign exchange management department of the State Council based on the international balance of payments and the needs of foreign exchange management.
Article 10 The foreign exchange management department of the State Council lawfully holds, manages, and operates national foreign exchange reserves, following the principles of safety, liquidity, and appreciation.
Article 11 When there is or may be a serious imbalance in the balance of payments, or a serious crisis in the national economy, the state may take necessary measures to safeguard and control the balance of payments.

Chapter 2 Foreign Exchange Management of Current Account

Article 12 Foreign exchange receipts and payments under current account should have a genuine and legal trading basis. Financial institutions engaged in foreign exchange settlement and sales shall conduct reasonable reviews of the authenticity of transaction documents and their consistency with foreign exchange receipts and payments in accordance with the regulations of the State Council's foreign exchange management department.
The foreign exchange management authority has the right to supervise and inspect the matters specified in the preceding paragraph.
Article 13 Foreign exchange income under current account can be retained or sold to financial institutions engaged in foreign exchange settlement and sales in accordance with relevant national regulations.
Article 14 Foreign exchange expenditures under the current account shall be paid in accordance with the management regulations of the State Council's foreign exchange management department on foreign exchange payments and purchases, and shall be paid in self owned foreign exchange or purchased from financial institutions engaged in foreign exchange settlement and sales business with valid documents.
Article 15 The limit for carrying and declaring foreign currency cash entering and leaving the country shall be stipulated by the foreign exchange management department of the State Council.

Chapter 3 Capital Account Foreign Exchange Management

Article 16 Overseas institutions and individuals who make direct investments in China shall register with the foreign exchange management authorities after obtaining approval from the relevant competent authorities.
Overseas institutions and individuals engaged in the issuance and trading of securities or derivative products within China shall comply with the national regulations on market access and register in accordance with the regulations of the State Council's foreign exchange management department.
Article 17 Domestic institutions and individuals who directly invest overseas or engage in the issuance and trading of overseas securities and derivative products shall register in accordance with the regulations of the State Council's foreign exchange management department. If it is required by national regulations to obtain approval or filing from the relevant competent department in advance, the approval or filing procedures should be completed before foreign exchange registration.
Article 18 The state implements scale management on external debt. Borrowing foreign debt should be handled in accordance with relevant national regulations and registered with foreign exchange management agencies.
The foreign exchange management department of the State Council is responsible for the statistics and monitoring of foreign debt nationwide, and regularly publishes the situation of foreign debt.
Article 19 To provide external guarantees, an application shall be submitted to the foreign exchange management authority, which shall make a decision on approval or disapproval based on the applicant's assets and liabilities; If the state stipulates that its business scope needs to be approved by the relevant competent department, the approval procedures should be completed before submitting an application to the foreign exchange management authority. After signing the external guarantee contract, the applicant shall go to the foreign exchange management authority to handle the registration of external guarantee.
The provisions of the preceding paragraph shall not apply to providing external guarantees for the transfer of loans from foreign governments or international financial organizations approved by the State Council.
Article 20 Banking and financial institutions may directly provide commercial loans to overseas within their approved business scope. Other domestic institutions providing commercial loans overseas shall apply to the foreign exchange management authority, and the foreign exchange management authority shall make a decision on approval or disapproval based on the applicant's assets and liabilities; If the state stipulates that its business scope needs to be approved by the relevant competent department, the approval procedures should be completed before submitting an application to the foreign exchange management authority.
Providing commercial loans overseas shall be registered in accordance with the regulations of the State Council's foreign exchange management department.
Article 21 The retention or sale of foreign exchange income from capital accounts to financial institutions engaged in foreign exchange settlement and sale business shall be approved by the foreign exchange management authority, except for those that do not require approval according to national regulations.
Article 22 Capital account foreign exchange expenditures shall be paid in accordance with the management regulations of the State Council's foreign exchange management department on foreign exchange payments and purchases, and shall be paid in self owned foreign exchange or purchased from financial institutions engaged in foreign exchange settlement and sales business with valid documents. If it is required by the state to obtain approval from the foreign exchange management authority, the approval procedures shall be completed before the foreign exchange payment.
Foreign invested enterprises that have been terminated in accordance with the law may, after liquidation and taxation in accordance with relevant national regulations, purchase foreign exchange and remit the RMB owned by the foreign investor to financial institutions engaged in foreign exchange settlement and sales.
Article 23 The foreign exchange and settlement funds of capital accounts shall be used for the purposes approved by the relevant competent authorities and foreign exchange management agencies. The foreign exchange management authority has the right to supervise and inspect the use of foreign exchange and settlement funds in capital accounts, as well as changes in accounts.

Chapter 4 Management of Foreign Exchange Business of Financial Institutions

Article 24 Financial institutions operating or terminating foreign exchange settlement and sales business shall obtain approval from foreign exchange management authorities; The operation or termination of other foreign exchange businesses shall be approved by the foreign exchange management authority or financial regulatory authority in accordance with the division of responsibilities.
Article 25 The foreign exchange management authorities shall implement comprehensive position management for the foreign exchange business of financial institutions, and the specific measures shall be formulated by the foreign exchange management department of the State Council.
Article 26 Financial institutions that need to convert their capital, profits, and assets between RMB and foreign currencies due to a mismatch between domestic and foreign currencies shall obtain approval from foreign exchange management authorities.

Chapter 5: Renminbi Exchange Rate and Foreign Exchange Market Management

Article 27 The RMB exchange rate adopts a managed floating exchange rate system based on market supply and demand.
Article 28 Financial institutions engaged in foreign exchange settlement and sales, as well as other institutions that meet the conditions stipulated by the State Council's foreign exchange management department, may conduct foreign exchange transactions in the interbank foreign exchange market in accordance with the regulations of the State Council's foreign exchange management department.
Article 29 Foreign exchange market transactions should follow the principles of openness, fairness, impartiality, and good faith.
Article 30 The currencies and forms of foreign exchange market transactions are regulated by the foreign exchange management department of the State Council.
Article 31 The foreign exchange management department of the State Council supervises and manages the national foreign exchange market in accordance with the law.
Article 32The foreign exchange management department of the State Council may regulate the foreign exchange market in accordance with changes in the foreign exchange market and the requirements of monetary policy in accordance with the law.

Chapter 6 Supervision and Management

Article 33 The foreign exchange management authorities shall perform their duties in accordance with the law and have the right to take the following measures:
（1） Conduct on-site inspections of financial institutions engaged in foreign exchange business;
（2） Enter the place where suspected foreign exchange violations occurred to investigate and collect evidence;
（3） Inquire with institutions and individuals involved in foreign exchange transactions or foreign exchange business activities, and request them to provide explanations on matters directly related to the investigated foreign exchange violations;
（4） Search and copy transaction documents and other materials directly related to the investigated foreign exchange violations;
（5） Retrieve and copy the financial accounting information and related documents of the parties involved in the investigated foreign exchange illegal activities, as well as directly related units and individuals. Documents and materials that may be transferred, concealed, or damaged can be sealed;
（6） With the approval of the head of the foreign exchange management department of the State Council or the provincial foreign exchange management authority, inquire about the accounts of the parties and directly related units and individuals involved in the investigated foreign exchange violations, except for personal savings deposit accounts;
（7） For those who have evidence to prove that illegal funds or other assets involved in the case have been or may be transferred or concealed, or important evidence has been concealed, forged, or destroyed, they may apply to the people's court for freezing or sealing.
Relevant units and individuals shall cooperate with the supervision and inspection of foreign exchange management authorities, truthfully explain the relevant situation and provide relevant documents and materials, and shall not refuse, obstruct or conceal.

Article 34 The foreign exchange management authority shall conduct supervision, inspection or investigation in accordance with the law, and the number of personnel conducting supervision, inspection or investigation shall not be less than 2, and they shall present their credentials. If the number of personnel involved in supervision, inspection, or investigation is less than 2 or if they have not presented their identification, the unit or individual subject to supervision, inspection, or investigation has the right to refuse.
Article 35 Domestic institutions engaged in foreign exchange operations shall submit financial accounting reports, statistical statements, and other materials in accordance with the regulations of the State Council's foreign exchange management department.
Article 36 Financial institutions engaged in foreign exchange business shall promptly report to the foreign exchange management authorities if they discover that their clients have engaged in illegal foreign exchange activities.
Article 37 The foreign exchange management department of the State Council may obtain necessary information from relevant departments and institutions of the State Council to fulfill its foreign exchange management responsibilities, and the relevant departments and institutions of the State Council shall provide it.
The foreign exchange management department of the State Council shall report the situation of foreign exchange management to relevant departments and institutions of the State Council.
Article 38 Any organization or individual has the right to report illegal foreign exchange activities.
The foreign exchange management authorities shall keep the informant confidential and reward the informant or the units and individuals who have contributed to the investigation and punishment of foreign exchange violations in accordance with regulations.

Chapter 7 Legal Liability

Article 39 For those who violate regulations by transferring domestic foreign exchange overseas, or using deceptive means to transfer domestic capital overseas to evade foreign exchange, the foreign exchange management authority shall order them to return the foreign exchange within a specified period of time and impose a fine of less than 30% of the amount of the evaded foreign exchange; For serious cases, a fine of no less than 30% and no more than the equivalent amount of the evaded foreign exchange shall be imposed; Those who commit crimes shall be held criminally responsible in accordance with the law.
Article 40 Those who violate regulations by using foreign exchange to receive and pay funds that should be received and paid in RMB, or by using false or invalid transaction documents to fraudulently purchase foreign exchange from financial institutions engaged in foreign exchange settlement and sales business, shall be ordered by the foreign exchange management authority to reverse the illegal foreign exchange funds and fined up to 30% of the illegal foreign exchange amount; For serious cases, a fine of no less than 30% and no more than the equivalent amount of illegal foreign exchange shall be imposed; Those who commit crimes shall be held criminally responsible in accordance with the law.
Article 41 Those who violate regulations by remitting foreign exchange into the country shall be ordered by the foreign exchange management authority to make corrections and fined up to 30% of the illegal amount; For serious cases, a fine of no less than 30% of the illegal amount and no more than its equivalent shall be imposed.
Those who engage in illegal foreign exchange settlement shall be ordered by the foreign exchange management authority to redeem the illegally settled funds and shall be fined up to 30% of the illegal amount.
Article 42 Those who violate regulations by carrying foreign exchange into or out of the country shall be given a warning by the foreign exchange management authority and may be fined up to 20% of the illegal amount. If laws and administrative regulations stipulate that customs shall impose penalties, such provisions shall apply.
Article 43 Those who violate foreign debt management by unauthorized borrowing, issuing bonds overseas, or providing external guarantees shall be given a warning and fined up to 30% of the illegal amount by the foreign exchange management authority.
Article 44 Those who violate regulations and change the purpose of foreign exchange or settlement funds without authorization shall be ordered to rectify by the foreign exchange management authority, have their illegal gains confiscated, and be fined up to 30% of the illegal amount; For serious cases, a fine of no less than 30% of the illegal amount and no more than its equivalent shall be imposed.
Those who violate regulations by illegally using foreign currency for pricing and settlement or transferring foreign exchange within the country shall be ordered to rectify by the foreign exchange management authority, given a warning, and may be fined up to 30% of the illegal amount.
Article 45 Those who engage in unauthorized buying and selling of foreign exchange, disguised buying and selling of foreign exchange, or illegal introduction of buying and selling of foreign exchange with large amounts shall be given a warning by the foreign exchange management authority, have their illegal gains confiscated, and be fined up to 30% of the illegal amount; If the circumstances are serious, a fine of not less than 30% of the illegal amount but not more than its equivalent shall be imposed; Those who commit crimes shall be held criminally responsible in accordance with the law.
Article 46 Those who engage in foreign exchange settlement and sale business without approval shall be ordered to rectify by the foreign exchange management authority. If there are illegal gains, they shall be confiscated. If the illegal gains are more than 500000 yuan, a fine of not less than one time and not more than five times the illegal gains shall be imposed; If there are no illegal gains or the illegal gains are less than 500000 yuan, a fine of not less than 500000 yuan but not more than 2 million yuan shall be imposed; If the circumstances are serious, the relevant competent department shall order the suspension of business for rectification or revoke the business license; Those who commit crimes shall be held criminally responsible in accordance with the law.
Those who engage in foreign exchange business other than foreign exchange settlement and sale without approval shall be punished by the foreign exchange management authority or financial regulatory authority in accordance with the provisions of the preceding paragraph.
Article 47 If a financial institution falls under any of the following circumstances, the foreign exchange management authority shall order it to rectify within a specified time limit, confiscate its illegal gains, and impose a fine of not less than 200000 yuan but not more than 1 million yuan; If the circumstances are serious or if the correction is not made within the prescribed time, the foreign exchange management authority shall order the cessation of relevant business operations:
（1） Failure to conduct a reasonable review of the authenticity of transaction documents and their consistency with foreign exchange receipts and payments when handling current account fund receipts and payments;
（2） Violating regulations in handling capital account fund receipts and payments;
（3） Violating regulations to handle foreign exchange settlement and sale business;
（4） Violating the comprehensive position management of foreign exchange business;
（5） Violation of foreign exchange market trading management.
Article 48 In any of the following circumstances, the foreign exchange management authority shall order correction, give a warning, impose a fine of up to 300000 yuan on institutions, and impose a fine of up to 50000 yuan on individuals:
（1） Failure to declare international balance of payments statistics in accordance with regulations;
（2） Failure to submit financial accounting reports, statistical statements, and other materials in accordance with regulations;
（3） Failure to submit valid documents as required or submission of untrue documents;
（4） Violation of foreign exchange account management regulations;
（5） Violation of foreign exchange registration management regulations;
（6） Refusing or obstructing foreign exchange management agencies from conducting supervision, inspection or investigation in accordance with the law.
Article 49 Domestic institutions that violate foreign exchange management regulations shall, in addition to being punished in accordance with this Regulation, impose sanctions on the directly responsible supervisors and other directly responsible personnel; Give warnings and impose fines ranging from 50000 to 500000 yuan on directors, supervisors, senior management personnel, and other directly responsible personnel of financial institutions who bear direct responsibility; Those who commit crimes shall be held criminally responsible in accordance with the law.
Article 50 If the staff of foreign exchange management agencies engage in favoritism, abuse of power, or neglect of duty, which constitutes a crime, they shall be held criminally responsible in accordance with the law; If it does not constitute a crime, disciplinary action shall be taken in accordance with the law.
Article 51 If the parties concerned are dissatisfied with the specific administrative actions taken by the foreign exchange management authorities, they may apply for administrative reconsideration in accordance with the law; If the party is still dissatisfied with the administrative reconsideration decision, they may file an administrative lawsuit with the people's court in accordance with the law.

Chapter 8 Supplementary Provisions

Article 52 The meanings of the following terms in this regulation：
（1） Domestic institutions refer to state organs, enterprises, institutions, social organizations, troops, etc. within the territory of the People's Republic of China, except for foreign diplomatic and consular missions in China and representative offices of international organizations in China.
（2） Domestic individuals refer to Chinese citizens and foreigners who have resided continuously in the People's Republic of China for at least one year, with the exception of foreign diplomats in China and representatives of international organizations in China.
（3） Current account refers to transaction items in international balance of payments that involve goods, services, income, and current transfers.
（4） Capital account refers to the transaction items in the balance of payments that cause changes in the level of external assets and liabilities, including capital transfer, direct investment, securities investment, derivative products, and loans.

Article 53 Non financial institutions engaged in foreign exchange settlement and sale business shall be approved by the foreign exchange management department of the State Council, and specific management measures shall be formulated separately by the foreign exchange management department of the State Council.
Article 54 This regulation shall come into effect from the date of its promulgation.