The People's Bank of China ("PBC") has recently released the announcement [2018] No.7 to specify the access and regulatory policies for foreign-invested payment institutions.
The announcement contains provisions as below. First, where an overseas institution intends to offer electronic payment services to subjects within the territory of China for their domestic and cross-border transactions, it shall establish a foreign-invested enterprise within the territory of China and obtain the payment business license under conditions and procedures set forth in the Administrative Measures for Payment Services of Non-financial Institutions. Second, a foreign-funded payment institution shall have in place a business system that is safe and standardized enough and is able to process payment business independently and a disaster recovery system, within the territory of China. Third, the personal information and financial information collected and generated by a foreign-invested payment institution within the territory of China shall be stored, processed and analyzed within China's territory. Fourth, the corporate governance, routine operations, risk management, capital disposal, deposit of provisions, and emergency response arrangements of a foreign-invested payment institution shall comply with regulatory requirements of the PBC on non-banking payment institutions.