Foreign Exchange Management and the Construction of a Social Credit System

Author: Compiled by the State Administration of Foreign Exchange
Publisher:
Publishing Date: 2006-02-01
Features: In recent years, as the regulatory authority of the foreign exchange market, the State Administration of Foreign Exchange (SAFE) has actively implemented the guidance of the Party Central Committee and the State Council on the construction of a social credit system. It has diligently worked on building a credit system for the foreign exchange market. SAFE has formulated the "Five-Year Plan for Building a Credit System in the Foreign Exchange Market," conducted pilot programs such as "Disclosure of Foreign Exchange Violations (Negative Information)" and "Compliance Rating Evaluation for Designated Foreign Exchange Banks." It has also integrated credit system construction with routine regulatory work by implementing credit management measures such as the "Honored Export Verification Enterprise System" and the "Anti-Money Laundering Blacklist and Whitelist System," enabling differentiated supervision of various foreign exchange-related entities. At the same time, SAFE has continuously strengthened efforts to combat illegal acts such as capital flight, fraudulent foreign exchange transactions, and other violations of credit principles. It has severely investigated major and high-profile cases, fully leveraging the deterrent effect of credit penalties to promote the awareness of compliance among foreign exchange market participants and further maintain the order of the foreign exchange market economy. This book includes both an overview of the national social credit system and a general introduction to the credit system in the foreign exchange market. It offers suggestions for the development of China's social credit system and compares international credit management practices. The publication of this book not only provides guidance for the credit system construction in foreign exchange by various branches but also benefits society in understanding the development of the foreign exchange credit system.