Regulatory Alerts2025-06-26
Added · Updated
Currency Conversion Arrangement Involving Onshore RMB (CNY) under RMB Cross-border Trade Settlement Scheme
The Hong Kong Monetary Authority issued this circular to supersede previous guidance and align local requirements with People's Bank of China regulations for offshore banks conducting CNY conversions under the RMB cross-border trade settlement scheme. The HKMA mandates that banks ensure conversions arise from genuine trade needs by implementing robust know-your-customer procedures, maintaining balanced positions, and keeping detailed records for regulatory inspection. This update streamlines operational expectations to facilitate RMB trade settlement business while ensuring strict compliance with Mainland authorities' rules on cross-border fund flows.
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