The Measures require the residents of the People's Republic of China ("PRC residents") to report their overseas financial assets and liabilities as well as the cross -border transactions to the State Administration of Foreign Exchange ("SAFE").

Under the Measures, the concept of “PRC residents” includes:

  1. Individuals who have resided in the PRC for more than one year, excluding overseas students, persons residing  in  the  PRC  only  for  medical  treatment, foreign staffs of foreign countries' embassies or consulates and their family members.
  2. PRC citizens who have been away from the PRC for less than one year, or PRC citizens studying, receiving medical treatment or working for PRC embass ies or consulates in foreign countries.
  3. Enterprises incorporated in the PRC, including foreign-invested companies and foreign-invested financial institutions.
  4. A representative office or branch of a foreign enterprise, excluding the embassy or consulate of foreign countries.
  5. PRC governmental authorities.

In addition to the PRC residents as defined under the Measures, a non-resident who conducts economic transactions within the PRC territory is also subject to the reporting obligations.

The Measures do not clearly define the overseas financial assets and liabilities that shall be reported,  the cross-border transactions under the scope of the reporting obligations, or the reporting procedures. Detailed implementing rules are expected to be promulgated.

The Measures stipulate that SAFE and its employees must keep any information from the reporting obligations confidential from other governmental authorities, except as otherwise provided by law.

Date of issue: November 9, 2013; Effective date: January 1, 2014.