Mitsubishi UFJ Bank simplifies remittance process from China to overseas

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International Business News  –  Mitsubishi UFJ Bank has received approval from relevant authorities to simplify the process of remittances from China to overseas companies. The target is enterprises headquartered in the “Lingang New Area” in Shanghai, and in the future, there is no need to submit documents to prove the purpose of funds when remittances overseas. As the first batch, ITOCHU’s subsidiaries have begun to apply the simplified process.

In order to stabilize the RMB exchange rate and strictly manage the flow of funds at home and abroad, companies need to submit certificates explaining the purpose of funds when sending money overseas. It is necessary to provide the bank with transaction contracts and payment notices, etc, and the practical burden of enterprises is relatively heavy.

The approval obtained by Mitsubishi UFJ Bank this time is only for companies headquartered in the “Lingang New Area” in Shanghai to cancel the above certificate. The Lingang New Area is part of the “China (Shanghai) Pilot Free Trade Zone”, which is a special zone for regulatory reform. The approval shows an intention to attract powerful companies through preferential treatment.

China is easing restrictions on remittances abroad in stages. Mitsubishi UFJ Bank has been approved to simplify the overseas remittance process in 2021, but previously, in principle, it had to check the certificate of the enterprise every 6 months to check whether there was any illegal remittance.