Three principles of convention and exhibition industry

The three principles of exhibition industry are "know your customers", "know your business" and "due diligence".

1. "Know your customer" means that banks should know the business scope, scale and development direction of corporate customers, that is, ensure customers' access in various businesses and prevent financing risks from the source;

2. "Know your business" means that banks should strengthen the examination of business information and strictly examine the authenticity and compliance of business background according to the production and operation, financial situation, products and market conditions of enterprises;

3. "Due diligence" means that banks should conduct a comprehensive and complete authenticity audit of specific businesses and vouchers according to the requirements of internal control system and operational procedures, which is the key to fully verify the information of "know your business" and "know your customers".

At present, banks generally implement the three principles of exhibition industry by improving internal control system and business process design, strengthening division of labor and cooperation among departments, and strengthening post-loan management, and are more cautious and strict in auditing the true compliance of business. At the same time, in order to meet the requirements of principled supervision, foreign exchange management departments are also exploring ways to improve management from improving laws and regulations and optimizing verification and inspection methods.

Examining authenticity according to the three principles is actually a requirement from formal examination to substantive examination. The subtext is that if you do something right, you have to take responsibility. Therefore, banks are very nervous about this. Foreign exchange management is to clarify the responsibility of the bank subject with the help of three principles, and the foreign exchange management department does not need and cannot refine the three principles, otherwise it will be redundant.

For the "three principles of exhibition industry", banks must transform the "principles of exhibition industry" into "rules of handling affairs" to clarify procedures, standardize operations, decentralize and implement responsibilities. Article 7 of the Guidelines for the Administration of Foreign Exchange in Service Trade clearly stipulates that "financial institutions shall formulate internal management systems in accordance with these Guidelines and relevant regulations, clarify relevant business operation procedures, and report relevant foreign exchange receipts and payments information in a timely manner in accordance with the provisions of the State on foreign exchange administration, and report abnormal and suspicious clues"; Paragraph 3 of Article 4 of the Detailed Rules for the Implementation of Foreign Exchange Management Guidelines for Service Trade clearly stipulates that "financial institutions shall reasonably perform their duties according to the principle of knowing your customers and your business"; Article 5 clearly stipulates that "financial institutions shall implement the Guidelines, these Detailed Rules and other relevant provisions in their own business operation processes to standardize specific business operations".