FAQ for Indirect Participants Application

　　

1. What are the qualifications for indirect participants?

　　

Pursuant to the Article VIII of the Interim Rules for Cross-border RMB Payment System Business, indirect participants should meet all the following requirements:

　　

a) Applicants should be banking financial institutions that are legally incorporated at home or abroad.

　　

b) Applicants should be institutions either in corporate capacity or designated by a legal entity.

　　

c) Applicants should be capable of centralized processing of business in mainland China.

　　

d) Applicants should meet local requirements for RMB business.

　　

e) Applicants should possess a sound management system for business as well as system.

　　　

2. How many direct participants can one indirect participant establish business relationship with?

　　

To encourage direct participants to provide better services for indirect participants, CIPS business rules and system functions are designed favorably for establishment of business relationship between one indirect participant and multiple direct participants.

　　　

3. What documents should be submitted to the CIPS Operator for application of indirect participants?

　　

Pursuant to the Operating Guides on Cross-border RMB Payment System Business, the applicant shall entrust a designated direct participant to submit the following application materials:

　　

a) Participant Application Form and Participant Information Declaration and Update (See the attachments)

　

b) Relevant certification documents

　　

For applicants that are mainland Chinese banking institutions, copies of Business License and Financial License should be submitted. For institutions that are designated by legal entities to access CIPS should also provide originals of their legal entities’ power of attorney

　　

For applicants that are overseas legal entities, copies of relevant local registration files issued by local authoritative institutions, samples of authorized signatures, copies of identification of the authorized signatories should be submitted. For institutions that are designated by legal entities to access CIPS should provide originals of their legal entities’ letters of attorney along with samples of authorized signatures, copies of identification of the authorized signatories.

　　

All the copies provided should be stamped by the direct participants who submit the application materials on behalf of the indirect participants.

　　　

4. How long does it usually take to get response from the CIPS Operator?

　　

The CIPS Operator should complete review procedure and inform the direct participants in written form within 30 days after receiving application materials. The direct participants should notify the applicants in time.

　　　

5. When will be the official start for applicants to do business through CIPS after receiving response from the CIPS Operator?

　　

For qualified applicants, the CIPS Operator shall complete the newly-admitted indirect applicants’ system settings, including creating CIPS Code, setting up the commencement dates, etc.

　　

The newly-admitted indirect applicants will be automatically activated on designated dates.

　　

CIPS will broadcast the announcement to all direct participants before the commencement dates.

　　

　　

Attachments: PARTICIPANT APPLICATION FORM.docx

　　              PARTICIPANT INFORMATION DECLARATION AND UPDATE.docx