Smartform Completion Guide

Transcription

1 Smartform Completion Guide Follow the step by step guide to complete your details. If you are viewing this as a PDF on your computer, kindly click on the numbers in blue to view further details A 6B

2 Note: Mandatory fields are highlighted in blue as shown on the left. STEP 1 Select the appropriate Language, Entity and Application date from the drop down. STEP 2 Select the payment type: Telegraphic Transfer for foreign currencies or overseas payments Local RENTAS (MYR), Interbank Funds Transfer, GIRO or local payments

3 STEP 3 Key in your debit account number and select the debit account currency of your debit account. STEP 4 Select the remittance currency and key in the amount in remittance currency or in debit account currency. Select the date you wish the remittance amount to be debited. STEP 5 Select the type of purpose of payment from the drop down list. Specify the exact purpose of payment in the 2 nd page of the Smartform. (Refer to step 14) STEP 5A* (for Remittance Currency : CNY Renminbi) Select the type of CNY Purpose of Payment from the drop down list. (Refer to Note below for details of the CNY Purpose of Payment) STEP 6A Select and input the local clearing code or SWIFT BIC of your beneficiary if available. STEP 6B Select and input country, bank name and address as advised by your beneficiary. Input message to beneficiary bank if applicable.

4 STEP 7 Input the complete account number and beneficiary name. For EURO payments to EU and EEA, IBAN number must be provided. Input the beneficiary address and message if available. Input this section only if applicable. STEP 8 Select one of the three options available for charge handling: OUR: Remitter to pay all charges BEN: Beneficiary to pay all charges SHA: Remitter to pay local HSBC charges and beneficiary to pay other bank charges (applicable to all Foreign Currency Payments only) STEP 9 This section is optional. Fill up this section only if you have the details from the beneficiary bank. STEP 10 This section is optional. Fill in the details of the foreign exchange rate if applicable.

5 STEP 11 Input the name of the debit acount holder. Input the address if applicable. STEP 12 Click the Print & Validate Form button upon completion of all required fields to print the Smartform with a 2D barcode. Barcode sample: STEP 13 Sign on the form with a black or blue pen. STEP 14 Specify the exact purpose of payment.

6 STEP 15 & 16 For Investment Abroad Only Step 15 - Check and complete this column with the applicable/required information for foreign exchange control regulatory requirement purposes. Step 16 - Sign on the form with a black or blue pen. (Note: NO signature is requires if not for Investment Abroad) Note: (for Remittance Currency : CNY Renminbi) Purpose of payment codes and definitions /BUSINESS/CAPITAL TRF /BUSINESS/CHARITY DONATION /BUSINESS/CURRENT ACC TXN /BUSINESS/GOODS TRADE Cross border Capital Transfer Capital account transactions, (capital transfers and acquisition/disposal of non productive or non financial assets), capital injection, capital reduction, capital payment, direct investments, securities investments, other investments, shareholder s loan/repayment, other capital payments as approved by relevant regulatory authorities, fund transfers for foreign direct investment ( FDI ) by enterprises and RMB Qualified Foreign Institutional Investor ( RQFII ) projects by enterprises, bonds, fund transfer between enterprises, individual investments, etc. Charity Donation Donation to charities (non profit making organizations) Current Account Transactions Income and current transfers, remittance of profits, bonus, dividend payment, tax payment and scholarships, etc. Cross border Goods Trade Cross border settlement conducted for trade in goods, including individual retail consumptions, general merchandise, goods for processing, goods required for repairing, goods procured in ports by carriers, transactions to be settled by letter of credit, bills for collection, payment of import equipment and advanced payment, etc.

7 /BUSINESS/SERVICE TRADE Cross border Service Trade Cross border settlement conducted for trade in services, including individual bill payments, services or fees relating to transportation; travel; communications; construction services; installation projects and their subcontract services; insurance; financial services; computer and information services; royalties and license fees; sports and entertainment; water, electricity and gas bills to be paid by corporations or financial institutions; rent; audit fees; hotel accommodation fees; legal fees; advertising and promotion fees; copyright and design fees; research and development fees; company registration fees; medical expenses; government services not mentioned above and other commercial services, etc. HSBC reserves the right to reject any cross border RMB remittance with no purpose of payment indicated, without prior notice. Important note: CNAPS2 is still under development by PBOC. There may be changes made to the payment message format and content from time to time, subject to changes in regulatory and clearing systems requirements.

8 Frequently Asked Questions (FAQs) Q1. What is the Smartform and when do I use it? Smartform is a digitized form with built in logic and drop down menus. It can be used for various types of payments, such as Telegraphic Transfer, RENTAS, Interbank Fund Transfer or local payments. Q2. How do I obtain the Smartform? You may download it from HSBC website for free. Q3. Do I need any software to use Smartform? Yes. It requires Adobe Reader version 9.0 or above, which you can download for free via Please ensure the following settings on Adobe Reader is in place: a. Click Edit, followed by Preferences b. Click Java or JavaScript c. Ensure the boxes are checked as follow. Q4. Does the Smartform require any authorised signature? Yes. Please print the completed Smartform and sign it with a blue or black pen. Q5. Can I use an inkjet printer or a laser printer with less than 600 dpi resolution to print the Smartform? It is recommended to print the Smartform with a laser printer of at least 600 dpi resolution. If the form is printed from an ink jet printer with less than 600 dpi resolution, the auto-generate barcode may be smudged or blurry. This may lead to a delay in payment processing or the bank may not be able to process the instruction. Q6. What should I do if I find errors after printing the Smartform? Kindly revise the erroneous field(s) in the original file and click print & validate form to print a new form and generate a new barcode. Please do not make any corrections on the form by hand. Q7. Can I save the Smartform as copy for future use? Yes. You may click Save button on the form and save as a template for future use. You will need to open the file, amend the details as required and click Print & Validate button the next time you need to make a

9 similar payment. Please also do reminded to check that there have been no version changes and saved form is in the format of the latest version of the Smartform. Q8. Do I need to sign page 2 if I am not remitting funds for investment abroad purposes? No, you are not required to sign page 2. You are required to sign only if you are making remittances or payment for investment abroad purposes.

10 FAQ on Cross Border RMB Remittance for CNAPS2 Q1. What is CNAPS2? CNAPS is an abbreviation of China National Advanced Payment System. CNAPS is a RMB payment system in Mainland of China. The CNAPS2 is an upgrade version of CNAPS where a new set of payment purpose codes is needed to indicate the type of business associated with the payment. Q2. Why do I need to provide the Purpose of Payment code when I make cross border outward payment in RMB? This is a new regulatory requirement announced by the People s Bank of China (PBOC). RMB cross border payments to China or cleared through Hong Kong are mandated to provide the Purpose of Payment code to indicate the type of business associated with. The RMB payment will be rejected if the code is not provided in the Smartform. Q3. It is not a common practice in other banks to request for the Purpose of Payment code when making cross-border RMB payment. Can I not indicate the code in my payment instruction? Or can I provide it later and HSBC proceeds with the instruction first? As the leading RMB bank, HSBC adopts the CNAPS2 standard ahead of other banks and implements respective enhancements to assist you in familiarising with the new requirement on cross-border RMB remittances. Q4. Why does HSBC introduce a dedicated set of Purpose of Payment code? PBOC and the RMB Clearing Bank in Hong Kong have introduced two separate sets of Purpose of Payment code. To ease the declaration process, HSBC unites both sets of code into one. You do not need to worry about the difference on format and applicability of the two separate sets of code mentioned. Q5. Can I input my own purpose of RMB payment, for example in free text format? HSBC provides you with a set of standardised Purpose of Payment codes which is in compliance with CNAPS 2 requirement on cross border RMB payment. You are required to specify the Purpose of Payment code according to the underlying payment purpose in the prescribed format to avoid mis-declaration. Besides, to consistently use the same set of Purpose of Payment codes helps in improving your operational efficiency on payment processing. Q6. I have no knowledge of the coverage and definitions of the Purpose of Payment codes designated for cross-border RMB payment. Is there any guideline that I can refer to? Yes. You can find the coverage and definition of each of the Purpose of Payment code for cross border RMB payment in Guide on RMB Cross Border Remittance for CNAPS 2. You may request for a copy of the Guide from your cash management specialist. Q7. What if my cross border RMB payment cannot fit in any one of the Purpose of Payment codes? The coverage and definitions of the Purposes of Payment codes match with the current regulation on the eligible types of cross border RMB payments. If you cannot find any code that suits your payment, we suggest that you check with the beneficiary bank on the eligibility of such payment and the most appropriate code for it. Q8. Other banks advising me only the cross border payment sending to China is required to claim the purpose of payment. Why does HSBC request me to declare the purpose of payment for all cross border RMB remittance even it is not sending into China? Cross border RMB payment may be routed to a correspondent bank locating in mainland China through CNAPS2 even the ultimate beneficiary is out of China. As per CNAPS2 standard the Purpose of Payment code is compulsory, to avoid potential delay or rejection due to the absence of the code, HSBC thus requires

11 customer to indicate the purpose of payment code in all cross border RMB payment instruction regardless of the destination of the beneficiary. Q9. Is there any change of the eligibility of cross border RMB payment type due to the CNAPS2 migration? Do I need to provide documentation proof at the time I declare the purpose of payment? The current regulation of the eligibility of cross-border RMB payment remains as per today s practice where proof of documentation is not compulsory when making the cross border RMB remittance. Whether the remitted fund can be credited to beneficiary s account, it will subject to the documentation checking at the beneficiary bank. Q10. When will CNAPS2 be fully operated in mainland China? The migration schedule of CNAPS 2 is not yet announced by PBOC. Q11. Will there be any change required on the cross border RMB payment instruction which was set up/prepared prior to the purpose of payment requirement takes effect? For example the Standing Instruction set up for Outward Telegraphic Transfer denominated in RMB, the payment instruction or the payment template saved on HSBCnet, etc.? Yes. Please revise the respective instruction(s) or payment template(s) with the provision of the HSBC Purpose of Payment code before the respective payment channel release date. Q12. Will there be any special charge if I failed to provide the purpose of payment? No additional charge will be imposed on you apart from the current tariff for handling payment return or rejection as well as the cost borne by the correspondent/beneficiary bank. HSBC reserves the right to review the cost implication and may apply as new charge in the future. Important note: RMB clearing is a developing field. There may be changes made to the payment message format and content from time to time, subject to changes in regulatory and clearing systems requirements.