China Tightens Trade-Document Scrutiny After Fake-Export Reports
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China’s foreign-exchange regulator told banks to improve checks of customer documents related to special trade zones amid speculation that the areas have been exploited to disguise capital inflows as exports.
Banks shouldn’t provide cross-border payment services to companies in the so-called bonded zones that aren’t pre-registered with the foreign-exchange authority, according to a notice issued yesterday by the State Administration of Foreign Exchange that takes effect June 1. If an exporter decides to deposit its revenue overseas, banks must know the size, duration and remittance arrangements, SAFE said.