On Oct. 19, CHI GVT issued export control rules for dual-use items.
CHI GVT published Regulations on export control of dual-use items; aim to maintain national security, fulfill international obligations by controlling export of dual-use items.
Regulations
FIs are encouraged to set up internal compliance systems for dual-use item export control; must align operations with guidelines issued by Department of Commerce.
FIs must perform due diligence to ensure that their clients involved in export activities comply with export control regulations and possess the necessary licenses.
Financial services providers cannot support illegal export activities of dual-use items; they have a duty to report any suspected illegal activities to the authorities.
Failure to report suspected violations can result in fines or warnings; fines for non-compliance by financial institutions can range up to RMB 500k for severe breaches.
The regulations require FIs to consider global agreements and reciprocity principles when facilitating cross-border transactions related to dual-use items.
