Laws of the People's Republic of China

Circular of the People's Bank of China, Shanghai Head Office, concerning Surveying SWIFT and Other Methods of Settling Cross-border Capitals

Bank of Communications, all policy banks, state-owned commercial banks, Shanghai branches of all joint stock commercial banks, Shanghai Pudong Development Bank, Bank of Shanghai, Shanghai Rural Commercial Bank, all foreign-funded commercial banks in Shanghai:

For the purpose of further knowing the methods of settling cross-border capitals, master the methods of transmitting cross-border capital transaction messages and the amount of transactions, a special survey concerning the methods of settling cross-border capitals has been decided to implement, and some relevant matters are hereby notified to you as follows:

I.

Contents of Survey:

A summary of the application of SWIFT in each entity, mainly including:

1.

time of joining SWIFT;

2.

management structure of intra-bank SWIFT;

3.

use of the SWIFT software;

4.

information about the SWIFT message transmission system of the head office and of the branches, and whether the branch handles transactions through the head office's uniform external terminus of SWIFT or through its own independent external terminus of SWIFT;

5.

information on transmission of messages for settlement of other cross-border capitals; and

6.

scale of the SWIFT transactions, as well as the types and structure of the messages (see Attached Tables 1 and 2 for details).

II.

Arrangements and Requirements of the Survey:

1.

All entities shall implement detailed survey and analysis with respect to the aforesaid contents, and make written materials on the surveyed contents.

2.

For the purpose of making statistics on the methods of transmitting cross-border capital transaction messages and the scale of transaction, Questionnaire on Transmission of Cross-border Capital Transaction Messages (Attached Table 1) has been designed, as well as the Questionnaire on the Types and Structure of SWIFT Messages (Attached Table 2), and the Name List of Contact Persons of the SWIFT Management Department (Attached Table 3). All entities are required to carefully fill in the tables with the statistical information according to the instructions.

3.

The written survey materials and questionnaires shall be simultaneously reported to No. 2 Financial Service Department of the Head Office (Anti-money Laundering Division) in paper or electronic form by November 10, 2006.

4.

Submission Address: Suite 1410, No. 181, Lujiazui East Road.

Contact Person: Zhou Jing

Tel: 58845083

Fax: 58845037

E-mail: zhoujing@sh.pbc.gov.cn

Appendixes:

Questionnaire on Transmission of Cross-border Capital Transaction Messages (Attached Table 1)

Questionnaire on the Types and Structure of SWIFT Messages (Attached Table 2)

Name List of Contact Persons of the SWIFT Management Department (Attached Table 3)

People's Bank of China, Shanghai Head Office

October 26, 2006