The Department of General Affairs of the State Administration of Foreign Exchange ("SAFE") has recently issued the Content of and Scoring Criteria for Evaluation of Banking Foreign Exchange Business Compliance and Prudence (2020) (the "Content and Criteria") and simultaneously distributed a circular to clarify the work arrangements.
According to the circular, evaluation of banking foreign exchange business compliance and prudence for the 2020 evaluation year (from October 1, 2019 to September 30, 2020) should be conducted in accordance with the Content and Criteria. The Content and Criteria contains three parts which are general evaluation indicators and scoring criteria thereof (maximum score: 100 points), indicators for separate evaluation on head offices (maximum score: 35 points) and scoring criteria thereof, and evaluation of banking foreign exchange business prudence. It is made clear in the circular that the final evaluation score earned by the head office will be calculated based on this formula: the final evaluation score of the head office = (the score of the general evaluation×65% + the score of the separate evaluation on the head office) × (100 - the score of business prudence evaluation finalized for the current evaluation)% + the score of business prudence evaluation.