Credit database to record illegal forex flow

State Administration of Foreign Exchange and the People's Bank of China co-signed an agreement to record illegal foreign exchange transactions to the financial credit information database of PBOC, State Administration of Foreign Exchange said on Wednesday.

Starting from January 1, 2015, corporate and institutional illegal foreign exchange transactions that constitute a substantial violation of law will be recorded quarterly into the credit system and displayed for five years.

Illegal trading in foreign exchange, including but not limited to obtaining foreign exchange under false pretenses, illegal arbitrage, fraudulently foreign exchange purchasing and settlement, changing the purpose of usage of foreign exchange without authorization, and foreign exchange state control evasion.

The agreement was signed to further implement the requirements on the Outline of Chinese Social Credit System Construction Plan (2014-2020) that issued by the State Council in June. The government aims to advance the credit information sharing between financial regulators, improve the disciplinary mechanism of illegal foreign exchange transactions, and promote business operations in accordance with the law.