The People's Bank of China (“PBoC”) issued the Circular on Strengthening the Regulation of Cross-Border Financial Networks and Information Services (“Circular”) on 27 July 2018. The Circular focuses on regulating cross-border financial networks and information services rendered by oversea providers, such as the Society for Worldwide Interbank Financial Telecommunications (“SWIFT”).
Under the Circular, overseas providers should report various items of required information in writing, such as their certifications, qualifications, security protection methods and risk management mechanisms. When any urgent or abnormal matters occur, overseas providers must assist domestic users to solve these problems and report them to the PBoC on time. In addition, overseas providers are restricted from establishing any dedicated financial networks in China to provide financial information transmission services.
A domestic user who intends to choose a service rendered by an overseas provider should report it to the competent authorities in writing in advance, and take all the necessary technical measures. If any urgent or abnormal matters occur, they should report it to the competent authorities on time.
Please click here to read the full text (Chinese only) of the Circular.