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What is a CNAPS Code?
A CNAPS code (China National Advanced Payment System) is a 12-digit number required for making payments in Chinese Yuan (Renminbi) to accounts in China. It functions like a sort code in the UK or a routing number in the US, identifying the specific bank branch for both international and domestic transactions in China. You can obtain the CNAPS code from the recipient, as it is usually listed on their bank statement or chequebook.
Example of a CNAPS Code
The format of the CNAPS code is structured to provide specific information about the bank and the branch involved in the transaction. Here’s a detailed breakdown of the CNAPS code with an example:
Example CNAPS Code: 103100000026
First Three Digits: These digits identify the bank. Each bank in China has a unique three-digit code. For example, in the code 103100000026, the Industrial and Commercial Bank of China (ICBC) is identified by the digits 103.
Next Four Digits: These digits identify the branch of the bank. This segment of the code indicates the specific branch or location where the recipient’s account is held. In the code 103100000026, the digits 1000 might refer to the central branch in a major city like Beijing.
Last Five Digits: These digits are used for specific processing requirements within the bank. This part of the code often represents more detailed branch-specific information or internal processing identifiers. In the code 103100000026, the digits 00026 are used for specific processing within the bank.
To summarise, the 12-digit CNAPS code format is designed to ensure that funds are routed accurately and efficiently within China’s banking system. You can obtain the CNAPS code from your recipient, and it should be available on their bank statement or chequebook.
Is The CNAPS Code Mandatory?
When sending Chinese Yuan (CNY) to a bank account in China, whether from within China or internationally, a CNAPS code is mandatory. However, when sending other currencies such as US Dollars (USD) to a bank account in China, a CNAPS code is not required. Instead, generally, the SWIFT/BIC code and account number of the recipient are used. So, while CNAPS codes are essential for CNY transactions to ensure correct processing within the Chinese banking system, other currencies such as USD sent to China via the SWIFT network do not require a CNAPS code.
Where Do I Enter the CNAPS Code?
If You Have an Account with Rutland FX
Once you have obtained the CNAPS code from your recipient, be sure to double-check it with them for accuracy. When you are ready to proceed, navigate to the beneficiaries tab on the Rutland FX portal and select “add a new beneficiary.” After entering the initial recipient information, you will encounter a page prompting you to input the CNAPS code. If necessary, you can also reach out to your account manager, who will assist you in adding a new beneficiary to your account.
If You Do Not Have an Account with Rutland FX
If you do not have an account with Rutland FX, you will need to enter the CNAPS code on your banking platform or payment provider. When creating the recipient, there should be an option to enter the CNAPS code. Ensure that you double-check the CNAPS code with your recipient for accuracy. Most banking platforms will guide you through the process of adding a new beneficiary and will prompt you to input the CNAPS code along with other necessary details such as the recipient’s bank account number and the SWIFT/BIC code. If you encounter any difficulties, your bank’s customer service team can provide assistance.
The Growing Importance of CNY in International Trade
China stands as one of the United Kingdom’s primary trading partners, with imports from China totaling over 60 billion pounds in 2022. Despite the prevalent practice among businesses of conducting offshore payments in US dollars for imports from China, the Renminbi (CNY) is swiftly evolving into an international currency. By March 2024, Renminbi (CNY) transactions accounted for 4.69% of live and delivered MT 103, MT 202, and ISO equivalent messages exchanged on the SWIFT network, solidifying its position as the fourth most active currency for global payments by value. Although this percentage might seem modest at first glance, it signifies substantial growth compared to the 1.85% recorded in February 2019. Consequently, there is a noticeable surge in the volume of payments being processed in Renminbi (CNY), highlighting its escalating prominence in international trade and finance.
The SWIFT network fully supports global Renminbi transactions, with its messaging services enabling the seamless transportation of Chinese characters through the Chinese Commercial Code (CCC) in FIN or directly via Chinese characters in MX (ISO 20022 messages). To initiate money transfers to China using Renminbi, several essential pieces of information are required, including the CNAPS code, the BIC/SWIFT code, the account number, and the payee’s name.
Established in 2008 by the People’s Bank of China, the CNAPS (China National Advanced Payment System) enables real-time settlement services for payments within mainland China and encourages the use of the Chinese Yuan (CNY) for transactions instead of relying heavily on the US dollar. Similar to the sort codes used in the United Kingdom, the CNAPS simplifies the process of routing payments within China’s extensive financial network, ensuring smooth and speedy transactions. This system represents a significant advancement in China’s financial infrastructure, showcasing its commitment to modernisation and global integration.
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