BofA Merrill GTS Enhances China Treasury Management Solution Suite

- Balance of Payments Declaration Module Improves Efficiency and Reduces Operational Risk
- Launch Is Consistent With Ongoing Solution Investment in China Market

SHANGHAI -- Bank of America Merrill Lynch Global Transaction Services (GTS) today announced a major enhancement to its suite of end-to-end China treasury management solutions. The proprietary China Online Balance of Payments (BOP) Declaration Module is the latest market-specific solution developed by Bank of America Merrill Lynch to allow its China treasury management client base to better navigate the ongoing liberalization of the country’s regulatory landscape.

The launch of the China Online BOP Declaration Module provides multiple benefits to clients including:

• Enhanced execution of BOP declarations for payment execution and receipt.
• Streamlined processing of supporting commercial documentation as required by the State Administration of Foreign Exchange (SAFE).
• Total compliance with SAFE foreign exchange (FX) documentary requirements that stipulate both remitters and beneficiaries declare the underlying business transaction for each foreign currency (FCY) and cross-border RMB (CNY) payment and receipt in China.

“From a processing point of view, our ability to help drive a higher ratio of electronic FX payments and receipts via our innovative BOP module provides a distinct processing advantage to our clients in China, allowing businesses to focus on core competencies. By improving efficiency, enhancing available resources and reducing operational risk for our clients in China, Bank of America Merrill Lynch is rapidly building on its differentiated and scalable offering in China and pleased to introduce this new model,” said Cathy Dou, head of Global Transaction Services, China.

Bank of America Merrill Lynch’s China Online BOP Declaration Module has the capability to process an array of payments and receipts regulated by SAFE. Powered by CashPro® Online, the bank’s online banking and financial management solution, the module offers numerous advantages including:

• Flexibility of handling FCY payments and receipts, both domestic and international, as well as RMB cross-border payments and receipts.
• Consistency with the ongoing centralization drive of China clients towards a single bank model and electronic delivery.
• Cost benefits including favorable transaction pricing and a substantial decrease in logistical fees.

In recent years, Bank of America Merrill Lynch has invested heavily in its GTS platform in China. In 2013, the bank announced an alliance with China UnionPay (CUP) through which clients can access a unique collection solution of nationwide cross-bank direct debit services capable of improving account receivables management. The bank was also the first in China to accept electronic FCY payments documents, thereby improving processing efficiency of for clients. Furthermore, Bank of America Merrill Lynch continues to build out its market-leading liquidity management solutions, through its Global Liquidity Platform, which is also complemented by the CashPro Accelerate solution, the bank’s cash forecasting tool, in China.

The bank has been active in China since 1972 and the GTS platform provides clients in this strategic market with an evolving suite of working capital solutions, including liquidity management, payments and receipts, trade and supply chain finance, and foreign exchange serving corporations, financial institution and public sector entities.