Regulations Governing Anti-Money Laundering and Countering Terrorism Financing of Financial Technology Innovative Experimentation Article 7

An applicant shall establish specific policies and procedures for cross-border wire transfers through a foreign bank or an authorized remittance service provider (referred to as the “entrusted institution” hereunder), including:1.Gather sufficient publicly available information to fully understand the nature of the entrusted institution’s businesses and to determine its reputation and quality of management, including whether it has complied with the AML/CFT regulations and whether it has been investigated or received any administrative action in connection with ML/TF;2.Assess whether the entrusted institution has adequate and effective AML/CFT controls;3.Obtain approval from senior management before establishing business relationships with the entrusted institution;4.Document the respective AML/CFT responsibilities of each party;5.For an entrusted institution that is unable to provide the aforementioned information upon the request of the applicant, the applicant shall suspend or terminate business relationship.6.Provisions of the preceding five subparagraphs also apply when the entrusted institution is a foreign branch (or subsidiary or parent company) of the applicant.