The Study On The Internal Control Of Bank’s International Remittance Business

With the increasing globalization of financial services,the banks’ international remittance business,as the fastest channel of domestic and foreign capital exchange,can easily be used by criminals to transfer illegal funds across the border while meeting the needs of cross-border capital exchange.In recent years,the various countries’ banks have not enough control over the international remittance business,which has led to numerous incidents of facing huge penalties from the regulatory authorities.In the context of the new balance of the global economy,the State Foreign Exchange Administration of the People’s Republic of China timely proposed the "five changes",emphasizing the transformation of foreign exchange business from pre-supervision to post-supervision and main management,in order to further deepen China’s foreign exchange management reform in the new era.In order to effectively reduce the risks of international remittance business and cope with the increasingly severe internal and external regulatory environment,it is of great significance to improve the internal control system of Banks,and optimize the internal control process of international remittance business.Based on learning advanced international experience,many banks in China are constantly exploring ways and means to improve the internal control of international remittance business,to improve the internal control system and risk management mechanism of international remittance business.However,in recent years,the banks’ foreign exchange violation cases punished by domestic and foreign regulators are still emerging in an endless stream in China.Thus,the banks’ international remittance in China is still faced with many problems in the internal control,so a scientific and effective control of foreign exchange compliance risk has become of importance in the banks’ internal control.How to effectively control and prevent the international remittance business risks,improve the international remittance business internal control system,and optimize the international remittance business internal control process is an urgent problem for banks to solve.The research object selected in this paper is branch S of bank B,which has a history of 39 years.Bank B has always been famous for its international settlement business,and it has a light weight among China’s commercial banks.Its S branch’s market share in terms of international payment volume has always been in the forefront of the local peers.Although branch S has established internal control system of foreign exchange compliance in international remittance business,it is inevitable that there are still some defects,so how to strengthen internal control has become an important task in the development of S branch’s international remittance business.In this paper,the author uses literature research,case study,detailed survey and depth interview method,by using the basic theory and method of the internal control,to evaluate the effectiveness of the internal control design and implementation of the international remittance business of the branch S of bank B and to determine the main problems,such as the internal control consciousness of the relevant foreign exchange personnel is not strong,the international remittance business internal control system,evaluation index,rewards and punishments measures does not meet the expectations of foreign exchange personnel,and the organizational structure design is unreasonable and so on.Analyze the causes and based on this,the author puts forwards the corresponding optimization suggestions on the internal control of the international remittance business,such as to enhance the internal control awareness of the international foreign exchange remittance related personnel,improve the international remittance business internal control system,evaluation index,rewards and punishments measures,and improve the internal control organizational structure of international remittance business and so on.By studying the problems of the international remittance business internal control process of the branch S of bank B,this paper seeks to improve its internal control system of international remittance business,enhance the level of its compliance risk management of foreign exchange,and improve the management quality and efficiency of its international remittance business.Also,those suggestions provide certain reference for trade and reference.Meanwhile,this paper extracts the common factors in internal control of international remittance business of Banks,which has many advantages.Firstly,it helps to promote internal control level of international remittance business,and provide certain referential significance for constructing banks internal control system of the international remittance business.Secondly,it provides reference for banks to carry out the internal control evaluation of international remittance business based on the COSO framework.