A remitting bank is a bank that accepts the remitter’s entrustment to handle outward remittance business. In international trade, it is usually the bank at the importing place. From the moment the remitting bank accepts the remittance application, the contractual relationship and effectiveness between it and the remitter are established. The remitting bank shall handle the outward remittance in accordance with the content of the remittance application and the selected remittance method, and accurately deliver the funds to the beneficiary. The remitting bank shall be responsible for any errors caused by the remitting bank’s failure to handle the remittance in accordance with the requirements of the remittance application. Problems caused by the failure to timely obtain the position or errors or omissions, or errors or omissions or delays of the remitting bank or the remitting bank shall be investigated and the responsibilities shall be clarified according to the specific circumstances. The remitting bank should pay attention to the following matters when handling remittances.
(1) Carefully review the outward remittance application. If it does not meet the requirements or there is a risk of failure to successfully pay, the remitter shall be asked to supplement or modify it according to the circumstances. If necessary, the application may be returned and not accepted.
(2) According to the requirements of foreign exchange management, carefully check the relevant documents provided by the remitter (see “Documents required by foreign exchange management” in the previous section) and examine the authenticity and consistency of the materials.
(3) Remittance can only be processed after the remitter’s cash or payment voucher is credited, that is, when the remitter’s account has sufficient amount to remit; it is strictly forbidden to remit money in the case of overdraft.
(4) The bank’s payment authorization letter (PO) must be prepared according to the content of the remittance application. The remittance route should be non-circumvented, that is, the one with the least links.
(5) The payment authorization letter must correctly indicate the method of reimbursement of the position. If the remitting bank and the remitting bank have opened accounts with the same currency as the remittance, the outgoing account shall use “Please debit my account” and the incoming account shall use “Your account has been credited”; if the position needs to be transferred through another transit bank, the payment authorization letter should clearly state “The position has been notified to × Bank to transfer to your account”, and use a bank transfer (BT) to authorize the account bank to transfer the position to the remitting bank; if the position needs to be claimed by the remitting bank to the account bank of the remitting bank, the payment authorization letter should state “Please claim the position directly from × Bank”, and issue a reimbursement authorization letter to the account bank, and the account of the opening bank will be debited when the remitting bank claims it.