Meaning
Banking compliance procedures for outbound financial transactions from China require the assembly of a complete package of supporting documents to prove the legitimacy and authenticity of the underlying trade or investment activity. This file, known as a remitting bank review dossier, must contain original commercial invoices and regulatory approval certificates. It is compiled by the corporate applicant and represents the primary evidentiary base that the bank must inspect before executing any foreign exchange transfer, effectively preventing unauthorized capital flight.
Document Structure
The components of the file depend heavily on the specific transaction category being processed. For capital transactions, the remitting bank review dossier must include the board resolution and the audited asset valuation report. For trade transactions, it must feature customs declarations and shipping documents that match the remittance amount.
Verification Process
Compliance officers at the bank inspect every document in the file to detect any signs of fraud or double-remittance. During the compile and check phases of the remitting bank review dossier, bank employees match the numbers on the tax certificates with the official databases of the state taxation administration. This systematic check helps ensure that no funds are moved using fabricated or expired documents.
Record Retention
Banks must store these compiled files for a minimum statutory period of five years to allow for subsequent regulatory audits. This preservation of the remitting bank review dossier provides a clear audit trail for the State Administration of Foreign Exchange during routine or targeted bank inspections. It ensures that the bank can prove its diligence if any transaction is later investigated.
