In order to send a SWIFT payment to CHINA it is highly recommended to meet the following recommendations:
Information provided by the Beneficiary: Remitter should obtain all required bank information from the Beneficiary (e.g. SWIFT BIC, account number, and beneficiary bank address). For additional information, please refer to www.pbc.gov.cn.
Payment Restrictions: This is a restricted currency. Restricted currency payments must include all required information, or they will be canceled. The beneficiary must have been activated in RCPMIS, the central bank reporting system, by its local bank before conducting any CNY cross-border transactions for the first time. For corporations, payments can be made for merchandise, service trade, other current account items (e.g., operating expenses), and approved capital activities.
Account Restrictions: Non-resident companies require approval from the People's Bank of China (PBOC) to open a CNY settlement account in China.
Additional Documentation: Supporting documents are not required for outgoing payments if the payment bank allows document simplification. Local regulatory reporting applies to all cross-border payments. If requested, the beneficiary must provide the local bank with supporting documentation to validate the underlying transaction and receive credit into the account.
Currency & Clearing Information: The official ISO currency code for payments is CNY. It is used as the official code to denominate payments and accounts. CNH is the informal currency term used in the off-shore markets and denotes the foreign exchange rate for the renminbi traded in off-shore markets. Hong Kong is the largest renminbi off-shore market due to its early participation in the renminbi international trade settlement scheme and the development of a domestic RMB clearing system (CHATS) where the Bank of China (Hong Kong) is the settlement institution.
Payment Restrictions: Since the liberalization of the currency, the renminbi can be used globally as a trade settlement currency in off-shore jurisdictions (outside mainland China). Payments involving FX for CNY rate (the on-shore renminbi rate) are subject to restrictions. Only merchandise trades with China to be settled within three months are eligible to contract the CNY rate. Receipt of cross-border CNY remittance to personal accounts in China is not supported. Foreign currency accounts in China are purpose-based. Current accounts are for normal pay/receive activities, and capital accounts are reserved for capital injection. Supporting documentation may be requested from the beneficiary to substantiate an FX trade. FX from renminbi to another foreign currency must be supported by documentation detailing the nature/purpose of the exchange. Foreign currency receipts of any amount are subject to explanation on nature/purpose of payment.
Ordering Customer (F50): Must include account number, full name (no initials), and address of the ordering customer. Use of initials can delay receipt of funds by the beneficiary.
Beneficiary Customer (F59): Include account number, full name (no initials), address, and as best practice, telephone number of the beneficiary customer. Use of initials or beneficiary name mismatches may delay receipt of funds by the beneficiary. The provided beneficiary name should be exactly the same as the information registered in China’s central bank information system (RCPMIS).
Beneficiary Bank (F57): Include the SWIFT BIC and full name and address of the beneficiary bank. Failing to provide beneficiary bank name and address could result in payment mid-routing and delays. If SWIFT BIC is not available or the ordering customer is sending local currency within China, include the full name and address of the beneficiary bank. SWIFT BIC is 8 or 11 alphanumeric characters: xxxxCNxx or xxxxCNxxxxx.
Sender to Receiver Information (F72): A purpose of payment code is mandatory and must be included on its own line in F72 for cross-border China-bound CNY payments. The purpose of payment code should be formatted as /ACC/PURPOSE/XXX or /ACC/XXX, where XXX is the 3 letter code (e.g., /CAP/, /GDS/, /SRV/, /CAC/, /FTF/). The purpose description (optional) can be added in line 2 or in F70. J.P. Morgan will reject without prior notice any China-bound cross-border payment instructions missing purpose of payment codes.
For the following financial institutions in CHINA you can find a list of their correspondent banks with the currencies and nostro accounts. Also you will find an instructions how to track the payments and other useful information which will help you to send/receive a SWIFT funds transfer or investigate a status of existing payment.
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