Since the Outline of the Plan for Social Credit System Construction (2014-2020) (Guofa No. 21 [2014], the “Outline”) was promulgated in June 2014, the State Administration of Foreign Exchange (SAFE) has conscientiously implemented the strategic plan of the CPC Central Committee and the State Council on the construction of the social credit system and vigorously pressed ahead with the credit system construction in the foreign exchange area, based on the situations of foreign exchange administration, so as to promote the healthy and orderly operation of the foreign exchange market.

The major work is highlighted as follows: First, improving the work mechanism. The Plan Promotion Team was established, with administrator of the SAFE as head, and deputy administrator of the SAFE as deputy head, to take full charge of the organization, advancement and coordination regarding the credit system construction in the foreign exchange area. Second, strengthening top-down design. The Opinions on Credit System Construction in Foreign Exchange Area was introduced, expressly setting forth the general ideas and major tasks of the credit system construction in the foreign exchange area, and defining the top priorities and divisions of responsibilities for 2015, in a bid to lay a solid foundation for pressing ahead with the credit system construction in the foreign exchange area in an orderly manner. Third, conducting more promotion and education activities. The SAFE has actively carried out activities such as the “Promotion Month for Running Businesses with Integrity”, and published a byline story entitled Actively Pressing Ahead with Credit System Construction in Foreign Exchange Area to make a profound interpretation of the credit system construction in the foreign exchange area. Fourth, stepping up efforts to disclose violations of foreign exchange laws and regulations. The SAFE discloses violations of foreign exchange laws and regulations via inquires on a quarterly basis, and actively cooperates with relevant departments to integrate foreign exchange violations into the basic database of the People’s Bank of China on financial credit information and the comprehensive credit database of China E-Port Committee for importers and exporters. Fifth, investigating into and rigorously rectifying violations of foreign exchange regulations. In 2014, the SAFE investigated into and rectified 1903 foreign exchange cases, imposing administrative penalties of RMB 450 million; and cooperated with public security authorities to detect 32 foreign exchange illegal cases such as underground banks, involving RMB 222.4 billion.

Next, the SAFE will continue to conscientiously implement of the plans of the CPC Central Committee and the State Council, further press ahead with the credit system construction in the foreign exchange area by strengthening top-down design, improving institutional arrangements, standardizing credit information records and use and improving classified management, so as to create a sound foreign exchange credit environment highlighting “incentivizing the creditable and punishing the discredited". (The end)

Relevant links:

1. The Circular of the State Administration of Foreign Exchange on Issuing the Opinions on Credit System Construction in Foreign Exchange Area (Huifa No. 16 [2015], see Appendix 1)

2. Actively Pressing Ahead with Credit System Construction in Foreign Exchange Area (See Appendix 2)