Centralized Operation Solution to Cross-border RMB Funds of International Conglomerates
ICBC can assist international conglomerates with centralized operation of RMB funds, help them realize two-way interflows between domestic funds and the RMB funds of their overseas member enterprises by setting up a cross-border fund pool, centralize their global funds in Mainland China for uniform management, and fulfill Collective Collection/payment and netting settlement under current account. Set out below is the detailed solution:
i. Account opening International conglomerates open a dedicated RMB deposit account with one of ICBC’s domestic branches, specifically for the cross-border two-way RMB fund pooling service.
ii. Cross-border two-way RMB fund pool Within the limit ratified by local PBC offices, international conglomerates can realize free transfers between their domestic and overseas funds through their dedicated RMB deposit accounts. Through system settings, ICBC ensures that the net fund inflow from the accounts of their overseas member enterprises into their RMB deposit accounts stays within the upper limit at all times. In addition, the Bank will promptly submit statistics about the total cross-border RMB receipts and payments of all related enterprises in a cross-border two-way RMB fund pool to the declaration systems of the SAFE and the PBC.
iii. Collective payment/collection An international conglomerate may select a lead enterprise or another member enterprise to open an RMB settlement account specifically for collective payment/collection of cross-border RMB funds under current account. ICBC will, on a monthly basis, submit statistics about the total cross-border RMB receipts and payments of all enterprises under the collective payment/collection arrangement to the declaration systems of the SAFE and the PBC.
iv. Netting settlement An international conglomerate may select a lead enterprise or another member enterprise to open an RMB settlement account for centrally calculating the current-account receivable and payable funds of its domestic member enterprises, and consolidate the payment/collection transactions within a certain period into one transaction, whereas ICBC will promptly submit relevant data to the declaration systems of the SAFE and the PBC.
Notes: Information provided herein is only for your reference. Specific business is subject to announcements and rules released by local ICBC outlet.