To adapt to the development of the transfer of cross-border foreign currency banknotes by banks and to further improve management of the transfer of foreign currency banknotes, the State Administration of Foreign Exchange (SAFE) and the General Administration of Customs (GAC) jointly amended the management system for the transfer of cross-border foreign currency banknotes by banks and released the Circular of the SAFE and the GAC on the Issuance of Regulations on Managing Transfers of Cross-border Foreign Currency Banknotes by Banks (HuiFa [2014] No. 24, hereafter referred to as the Circular).

The highlights of the Circular are as follows: 1. Simplifying management processes and delegating administrative approval responsibilities to the SAFE branches. 2. Clarifying the processes for adding customs ports, with only the local SAFE branches and the customs’ authority directly under the GAC required to file with the SAFE and the GAC. 3. Allowing other qualified institutions to conduct transfers of cross-border foreign currency banknotes after obtaining approval. 4. Adjusting the name of the “License for the Transfer of Cross-border Foreign Currency Banknotes by Banks” to “Documents of Cross-border Transfers of Foreign Currency Banknotes.”

The Circular will come into force on May 1, 2014.