EFN Account
EFN Account
An Efficient Fund Management Solution for Overseas Institutions at Bank of China
- Supports Multi-Currency Operations
- Can handle RMB and other major foreign currencies, facilitating cross-border trade settlements.
- Flexible Cross-Border Fund Transfers
- Supports fund allocation between overseas accounts and domestic same-name accounts.
- Exchange Rate Risk Management
- Offers a “pending order for foreign exchange settlement” function, allowing preset exchange rates for automatic execution to reduce exchange rate fluctuation risks.
- Compliance Assurance
- Strictly adheres to foreign exchange management policies, with banks providing authenticity review and compliance support.
- Suitable for Various Types of Enterprises
- Includes enterprises involved in the “Belt and Road” projects, Chinese-funded “going global” enterprises, offshore trading companies, etc.
- Dual-Person Review Mechanism Throughout
- Dual-Person Review Mechanism Throughout: Important operations require confirmation by two persons to ensure fund safety and avoid operational errors.
EFN Account REGISTRATION PROCEDURE
Select a suitable bank for account opening
First, select a bank that has branches in the Hainan Free Trade Port. These banks usually provide detailed account opening guidance and support services.
Prepare the required documents for account opening
Identity documents of the legal representative
Articles of association or other relevant documents
Other documents required by the bank
ubmit the account opening application online or offline
Online application: Log in to the official website of the selected bank, find the EF account opening page, fill in the relevant information, and upload the required documents.
Offline application: Visit a bank branch and submit paper application materials.
Bank review
The bank will review the submitted documents. If approved, the applicant will be notified of the successful account opening. The review time may vary depending on the bank but is usually completed within several business days.
Complete account opening
After approval, the bank will open an EFN account for the applicant and provide account information. The applicant can then start using the account for cross-border financial transactions.
Fund transfer
fund transfers for EF accounts are more convenient. Transfers between EF accounts and overseas accounts are considered “first-line transfers.” Banks can process them based on the enterprise’s payment instructions, streamlining the process and improving the efficiency of fund transfers.
BASIC DOCUMENTS REQUIRED
Documents required for registering a EFN Account
Entity Qualification and Identity Documentation
Original documents proving the legal establishment of the overseas entity (e.g., Certificate of Incorporation), Articles of Association, documentation for shareholders and Ultimate Beneficial Owners (UBOs), and original valid identity documents of the legal representative, authorized signatories, large-value transaction contacts, and handling personnel.
Authorization and Resolution Documents
Includes original board or management approval documents for account opening (must specify authorized signatories), Power of Attorney (POA) for relevant personnel, and their corresponding identity documents.
Document Compliance and Code Requirements
Non-Chinese materials require a Chinese translation stamped with the company seal or signatory's signature. If already obtained, provide the Special Institution Code (SIC) assignment notice; for first-time account opening in China, provide the registration certificate and necessary translations.
Account and Seal Management
If a basic deposit account has been previously opened, provide the original account opening permit; disregard if not applicable. Also required is the provision of the company's official seal or financial special seal, and the personal name chop of the legal representative or authorized agent (the chop should not contain the Chinese character "印" - Yin).
WHAT DO YOU RECEIVE
What will you receive after EFN Account Registration
Exclusive Account Activation Notice
Your institutional-grade professional trading account has been successfully activated.
Full-Featured Management Access
Granting you complete permissions for asset monitoring, trade execution, and risk management.
Why apply the EFN Account?
Efficient Management of Your Global Assets
Exclusive, Institutional-Grade Services
Fast Execution & Optimized Costs
Frequently Asked Questions about EFN Account Registration
Learn More About EFN Account Registration
Account opening qualification issue
Overseas institutions must have been legally registered for at least one year. However, the requirement on the registration duration can be appropriately relaxed for legal persons and other organizations registered in Macau, Chinese-funded "going global" enterprises, or overseas enterprises involved in the "Belt and Road" projects. If an overseas institution is from a country or region with high risks of money laundering and terrorist financing, or engaged in sensitive industries such as gambling, corresponding enhanced identity identification measures must be taken.
Account opening document issues
The account opening documents must be complete and meet the requirements. For example, the registration certificates, articles of association, and board resolutions of overseas institutions. If the documents are not in Chinese, a Chinese translation must be provided, and the official seal of the entity or other relevant seals must be affixed to the translation. In addition, the contract amount must match the paid-in capital of the enterprise, and new-type offshore trading enterprises must provide an explanation of "separation of three flows" (i.e., the flow of goods, funds, and documents
Account usage restriction issues
In principle, EFN accounts are not allowed to handle cash businesses. The "cross-second-line" transfer between an EFN account and a domestic resident settlement account is managed as a cross-border transaction, which shall be conducted in RMB. Banking institutions shall conduct authenticity verification in accordance with the three principles of due diligence.
Fund transfer issues
Each transaction must achieve "double matching", that is, the flow of funds must be consistent with the registered purpose. Otherwise, it may trigger risk control and lead to the freezing of account funds. For example, if the registration states "investing in Company A" but the funds are actually transferred to Company B, problems may arise.
Account management issues
The annual audit report must be submitted on time; otherwise, the foreign exchange bureau system will automatically mark it as abnormal, affecting the use of the account. For instance, failing to submit the appendix of the latest audit report when conducting the annual foreign exchange business report may result in the account being frozen.
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