PBC and SAFE Seek Comments on Administrative Provisions on the Centralized Operation of Cross-border Funds in Domestic and Foreign Currencies by Multinational Corporations

The People's Bank of China (PBC) and the State Administration of Foreign Exchange (SAFE) have jointly drafted the Circular on Issuing the Administrative Provisions on the Centralized Operation of Cross-border Funds in Domestic and Foreign Currencies by Multinational Corporations (Draft for Comment) (the "Draft"), which is now open for public consultation until August 24, 2025.

The Draft proposes to expand nationwide the relatively mature low-version cash pooling policy previously piloted in certain regions. Key highlights include: (1) establishing an integrated cash pooling policy framework for both domestic and foreign currencies; (2) clarifying regulatory requirements for cross-border fund flows; and (3) simplifying business handling procedures while strengthening ongoing and ex-post supervision. Specifically, the Draft stipulates that the low-version cash pooling policy will unify the management of domestic and foreign currency cross-border cash pooling business. The access thresholds are designed with consideration for alignment with existing foreign exchange and RMB cash pools, facilitating enterprises' transition from existing cash pools to the low-version cash pools. Subsequently, all newly established cash pooling business in all regions, as well as existing foreign currency cash pools, will be managed in accordance with the provisions of the low-version cash pooling policy.



(Source: http://www.pbc.gov.cn/tiaofasi/144941/144979/3941920/5791563/index.html)

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