International Settlement

International Remittance

  1) Introduction:

  Taking advantage of the inter-bank transfer and clearing network, the bank forwards, at the entrustment of the remitter, money to the beneficiary with appropriate payment certificates.

  The remittance may be divided into inward remittance and outward remittance in terms of the direction of funds movement, or telegraphic transfer (T/T), mail transfer (M/T) and demand draft (D/D) in terms of the remitting manner.

  T/T is safe and quick, but costs more. M/T is relatively cheaper, but rather slow. D/D is more suitable to the payment-against-goods trade.

  2) Functions

  The Bank of Kunlun has advanced SWIFT system, and is able to transfer fund from branches to the head office in real-time. It is convenient for outward remittance.

  3) Target customer:

  Customers of Bank of Kunlun

  4) Procedures:

  Outward Remittance

  1. Customers submit the application for outward remittance and the declaration form of international balance. Trade captioned payments require customers to submit the importing payment declaration; non-trade and capital captioned payments require the non-trade (including capital) foreign payment declaration.

  2. The Bank pays to the handling bank the amount the same as the outward remittance, as well as the commission and communication fee. The Bank of Kunlun may remit money directly from spot exchange accounts or remit after the RMB purchase of foreign exchange. Foreign exchange transfer check is required for outward remittance to remit from spot exchange accounts. If the Bank remits after the RMB purchase of foreign exchange, customers need to go through the formalities.

  3. According to the relevant provision of the State Administration of Foreign Exchange, the customers must submit valid forms for various types of foreign exchange payments.

  4. The handling bank verifies the documents of foreign exchange payment and application for outward remittance.

  5. The handling bank sends the message of outward remittance abroad.

  6. If the remittance instructions are needed to amend, the Bank will process once the customers submit the application for change.

  7. Reexchange of telegraphic transferred outward remittance: remitting bank requests for reexchange by the remitter’s written application and remittance receipt. After receiving the confirmation from drawee bank and the remittance payment, the Bank will process reexchange.

  Inward Remittance

  1. Bank of Kunlun will pay the remittance to the payee after receiving and verifying the instruction telegraph, letter or draft and receiving position.

  2. Customers need to declare within 10 business days after receiving the foreign inward remittance. Institutional customers need to submit foreign income declaration sealed by the institutional finance stamp after receiving the notice of credit. Individual customers follow the same procedures if receiving the equivalent of USD 2,000 or above.

  3. Individual customers need to present payee’s valid ID when requesting the payment

  Note: It is important to choose a correct payment method for shortening the transaction period of remittance. Customers may get the information of our overseas account and the details of remittance methods from the Bank’s customer department to make the reasonable choice, cut off the transaction period and service fees.