Authorized banks are those banks authorized under Circular 59 by SAFE to settle capital funds accounts without advance approval by SAFE. The bank may be a foreign bank. To obtain SAFE authorization, a bank must (1) be qualified for converting foreign exchange; (2) in the past three years, not have violated the rules for foreign exchange conversion under the capital account; (3) have proper internal controls on FIE capital account limits and the management of capital funds; and (4) have an efficient reporting system for unusual occurrences in business operations.
