According to the Law of the People¡¯s Republic of China on Anti-Money Laundering and the Rules for Anti-Money Laundering by Financial Institutions, the Bank has established and improved its internal control system of AML/CFT including KYC or Customer Due Diligence. Now the Bank shows you as following:
Slogan for China Eximbank
¡®Compliance on AML/CFT is My Responsibility¡¯
1
Background information
A
Legal name of institution: The Export-Import Bank of China (China Exim bank)
If no,what about your institution? The Bank is solely owned by the central government of China (i.e. a state policy financial institution).
B
Are you listed on any stock exchange?
If so, which?
If no, please attach a list of the beneficial owners# of the bank (including their nominees, if their shares are held by nominees) who own, control or have power to vote for 20 percent or more of any class of voting securities or other voting interests; or of the 10 largest shareholders if no owner has more than 20%.
#A beneficial owner is defined as a natural person who ultimately owns or controls a customer or the person on whose behalf a transaction is being conducted and includes the person who exercises ultimate effective control over a body corporate or unincorporated.
C
Are there any Politically Exposed Persons# among your institution¡¯s ownership structure and executive management?
If yes, please provide details.
#Politically Exposed Persons--PEPs are individuals who are or have been entrusted with prominent public functions, for example Heads of State of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, important political party officials, or their family members or close associates. The definition is not intended to cover middle ranking or more junior individuals in the foregoing categories (of TATF Forty Recommendations)
D
Name, title and contract number of the senior executives on the ML/FT risk management:
Name
Title
Telephone number
Email Address
Tengsanbo
General manger
0086-10-84198200
tengsanbo@eximbank.gov.cn
Dingwenyan
Director
0086-10-84198202
dingwenyan@eximbank.gov.cn
3
Business Activities
A
Principal types of financial products and services: Providing export credit and import credit;
Providing loans for overseas construction contracts and overseas investment projects;
Providing Chinese Government Concessionary loans;
Offering international guarantee;
Providing export and import factoring;
Onlending loans extended by foreign governments and financial institutions;
Handling international and domestic settlement and corporate deposit under loan facilities provided by the Bank;
Raising funds in domestic and overseas capital markets and money markets;
Conducting international inter-bank loans, organizing or participating in international and domestic syndicated loans;
Renminbi inter-bank borrowing and lending and bond repurchases;
Foreign exchange trading and approved foreign exchange dealings on commission;
Creditworthiness investigation, consultation, evaluation and witness services that are relevant to the Bank¡¯s business;
Other business approved or entrusted.
Does your institution provide services to off-shore banks, inter-net banks and banks located in high-risk area?
D
Registration/License number:1000001001644
4
Regulatory Status
A
Primary regulatory body and the jurisdiction of licensing authority: Anti-Money Laundering Bureau of the People¡¯s Bank of China
Anti-Money Laundering Monitoring and Analysis Center of China
China Banking Regulatory Commission (CBRC)
B
Regulatory authority responsible for Anti-Money Laundering supervision of institution: Anti-Money Laundering Bureau of the People¡¯s Republic of China
Anti-Money Laundering Monitoring and Analysis Center of China
C
Name of external auditors: Anti-Money Laundering Bureau of the People¡¯s Bank of China
China Banking Regulatory Commission (CBRC)
5
Non Shell Bank Arrangements
A
Does your institution conduct with a shell bank#?
B
Kindly provide confirmation that no business will be conducted with a shell bank. #Shell Bank means a bank incorporated in a jurisdiction which it has no physical presence and which is unaffiliated with a regulated financial group (cf. FATF Forty Recommendations).
To establish and improve its internal control system of AML/CFT including KYC or Customer Due Diligence according to the Law of the People¡¯s Republic of China on Anti-money Laundering, the Rules for Anti-Money Laundering by Financial Institutions and its Bank¡¯s Administrative Rules on AML/CFT.
To set up recently a special institution (AML Office) to take charge of the effective implementation of its internal control system of AML/CFT.
Not to provide service to or have trade with any client, especially the financial institution without physical presence and out of the regulated financial group, who cannot clarify his identity or establish any anonymous or pseudonymous account.
C
Name of external auditors: Anti-Money Laundering Bureau of the People¡¯s Bank of China
China Banking Regulatory Commission (CBRC)
6
Laws and Regulations
A
Is your institution subject to laws and regulations against money laundering and terrorist financing?
B
The major laws or regulations enacted against money laundering and terrorist financing in your country. The Laws of the People¡¯s Republic of China on Anti-Money laundering
The Rules for Anti-Money Laundering by Financial Institutions
The Administrative Rules for the Reporting of Large-value and Suspicious Payment Transactions
The Administrative Rules for Bank Account Management
The Administrative Rules for Domestic Foreign Currency Accounts
The Administrative Rules for Overseas Foreign Currency Accounts
C
International standards and guidelines relevant to the Bank FATF Recommendations (40 +9 )
Basel
OFAC
7
AML/CFT Controls
Does your AML/CFT Controls apply to your domestic and foreign branches and subsidiaries?
Know Your Customers (KYC)
A
Please describe your institution¡¯s KYC policies and procedures. To require the client to show its authentic and effective identity certificate or any other identity certification document and make relevant verification and registration, establishing any business relationship with a client or provide such one-off financial services as remittance, conversion and bill payment beyond the prescribed amount.
To make verification and registration of the identity certificates or any other identity certification documents of the agent and the principal, if a client entrusts an agent to handle the transaction on its/his behalf.
To make verification and registration of the identity certificate or any our other identity certification document of the beneficiary as well, if the contractual beneficiary is not the client himself, establishing a business relationship of international guarantee or international trade financing with client.
Not to provide any service to or have trade with any client who cannot clarify his identity or establish any anonymous or pseudonymous account.
To check out the client's identity again for any doubt about the authenticity or effectiveness or completeness of any client's identity documents.
To pay more attention to higher risk customers or activities.
To guarantee that the third party has adopted the measures on KYC as required by the applicable Law, if a third party identifies the identity of our clients.
To bear the liabilities for its failure to perform the obligation of clarifying the client's identity, if any third party fails to adopt the measures as prescribed by the present Law.
B
Does your institution open/maintain accounts for customers which are not identified (anonymous accounts)?
C
Does your institution ensure that its credit/financial institution customers have adequate AML/CFT and KYC procedures in place?
Why so? To follow the policies and procedures on Financial Customer Due Diligence in a timely manner, especially prior to setting up the relationship with a new counterparty.
D
Does your institution allow third parties to directly or indirectly use your accounts with any bank?
If yes, please indicate: The names and addresses of third parties;
Whether your institution has formally identified these third parties
How your institution performs the ongoing monitoring of the activities of these third parties.
Record Keeping
A
Has your institution established a preservation system for its clients' identity materials and transactional records?
If not, when do you propose to do?
B
Does your institution update and keep any client's identity material that changes in a timely manner, during the existence of business relationship?
C
How many years does your institution keep the relevant documents and records of identification and transaction? At least 5 years
Monitoring and Reporting
A
Does your institution have a monitoring and reporting IT system on the large-sum and suspicious activities/transactions?At least 5 years
B
Please describe your policies and procedures on recognizing and reporting suspicious activities/transactions.
8
To be alert to unusual or suspicious transactions or other activities that appear not to make good business or investment sense, or activities that appear to be inconsistent with the counterparty or customer¡¯s expected activity, including activities that may be indicative of criminal conduct, terrorism or corruption.
To establish and follow the policies and procedures requiring the relevant employees to refer promptly any suspicious activity to AML Office of Internal Control & Compliance Department by the Bank¡¯s IT system on AML/CFT.
To set up and follow the policies and procedures requiring AML Officer of Internal Control & Compliance Department to report the suspicious transactions to Anti-Money Laundering Monitoring and Analysis Center of China by the Bank¡¯s IT system on AML/CFT.
To build and follow the policies and procedures requiring the Leadership Group of Head Office on AML/CFT to assess and determine whether a transaction suspected of ML/TF should be filed with the regulators and the public security institution.
9
To co-operate fully with law enforcement authorities in investigations concerning possible ML/TF within the confines of applicable laws.
10
To be alert not to provide any information to any person suspected of illegal activity regarding suspicion or inquiry on his/her account or transaction or any indication of being reported to the regulators.
C
Does your institution search your customer account database for terrorist names?
If yes, please indicate what list of names is used.
D
Does your institution filter your international telegraphic transfers (e.g. international wire transfers) for terrorist names?
If yes, please indicate what list of names is used.
Awareness raising and training
A
Does your institution have an employee-training program for prevention of money laundering and terrorist financing requiring all the staff to undertake training?
If so, ?how frequently? Twice a year
B
Content and trainee: To make all management and staff aware of what is expected of them to prevent money laundering or terrorist financing and to advise them of the consequences for them and for the Bank, if they fall short of that expectation.
To provide initial and annual update training for all appropriate personnel, including all personnel who set up and manage customer account opening or transactions, correspondent relationships, and/or are involved in trade finance activity.
To sign a memorandum confirming that all management and staff have read and understood the Bank¡¯s AML/KYC policies and procedures.
Independent Auditing
A
Does your institution have the policies and procedures for independent auditing or testing the adequacy of your AML/CFT compliance?
B
If so, who do? And how frequently? By Auditing Department of Head Office quarterly.
Independent Auditing
A
Has your institution been sanctioned or penalized for failing to comply with relevant domestic AML/CFT laws or regulations or with AML/CFT laws or regulations of any other country in the past five years?
B
Punishment on out-of-compliance on AML/ CFT: To be treated as a disciplinary issue, failing to abide by the policies and procedures set by the Bank to prevent money laundering and terrorist financing.
To be viewed as gross misconduct for any deliberate breach. This could lead to termination of employment and could also result in criminal prosecution and imprisonment for the member of management and staff concerned.
To be fined by 500, 000 Yuan up to 5, 000, 000 Yuan for the financial institution, and by 50, 000 Yuan up to 500, 000 Yuan upon its person concerned according to the Law of the People¡¯s Republic of China on Anti-Money Laundering.
8
Certification
Questionnaire completed by(duly authorized AML officer of institution)
Name: Dingwenyan
Location: AML Office of Internal Control & Compliance Department
Title: Director
Signature:
Date: 2008-3-26
Brief
Introduction
