BEIJING, June 20 (Xinhua) -- The People's Bank of China (PBOC), the country's central bank, said on Friday that the cross-border payment connect linking users in the Chinese mainland and Hong Kong will begin operations on June 22.
By linking the mainland's Internet Banking Payment System and Hong Kong's Faster Payment System, the payment connect will support participating institutions to provide efficient, convenient and safe cross-border payment services for residents in both the mainland and Hong Kong, the PBOC said in a statement.
The payment connect system is another important measure unveiled by the central government to support Hong Kong's development, enhance people's livelihoods, and promote cooperation between the mainland and Hong Kong, according to the statement.
Through the system, users will be able to initiate cross-border remittances in renminbi and Hong Kong dollars in both locations via mobile and online banking channels, improving the efficiency of cross-border money transfers.
Additionally, the costs of cross-border money transfers will be lowered as relevant payment infrastructures are connected directly within the system.
The introduction of the system is also expected to facilitate economic and trade activities on the mainland and in Hong Kong, and to strengthen Hong Kong's status as an international financial center, per the statement.
A launch ceremony for the payment connect was held on Friday, attended by PBOC Governor Pan Gongsheng and Eddie Yue, chief executive of the Hong Kong Monetary Authority (HKMA).
In its next step, the PBOC will enhance regulatory cooperation with the HKMA to ensure the smooth, orderly operations of the system.
Institutions participating in the payment connect should comply strictly with relevant anti-money laundering, counter-terrorist financing, counter-proliferation financing and cross-border payment settlement laws and regulations, according to the PBOC statement. Enditem
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