Aug 09 (Nikkei) - Top Japanese lender MUFG Bank has won approval from Chinese authorities to conduct fund transfers out of the country for select clients in a way that reduces scrutiny by Beijing and slashes paperwork.
The clearance applies to MUFG Bank clients based in Shanghai's Lingang economic development zone. A group company under Japanese trading house Itochu has begun using the service.
These clients are exempted from China's requirement that companies sending funds across the border submit paperwork detailing information such as the purpose of the transfer. Authorities scrutinize movement of money to prevent capital outflow and to stabilize the value of the yuan.
The requirement creates a heavy workload for companies, which must provide banks with documents such as business contracts and invoices.
Lingang is part of Shanghai's pilot free trade zone, which offers incentives to draw major companies. ...continue reading
