ANNOUNCEMENT 01 May 2011
In May 2011, the government of China announced a change in the required local operations to serve domestic customers.
NUMBER OF INTERVENTIONS
PRC State Council, 21st Janurary 2011. (银发〔2011〕17号: 人民银行关于银行业金融机构做好个人金融信息保护工作的通知)
On 21 January 2011, the People's Bank of China issued the Notice on Financial Institutions' Protection over Personal Financial Information. (Yin Fa 2011 No.17) This measure was nominally set up to protect such personal information from being infringed and abused for illegal purposes.
In relevant parts, paragraph 6 of this Notice stipulates that personal financial information collected in China shall be stored, processed and analyzed in China. No financial institution is allowed to transfer the personal financial information outside China unless otherwise specified in other laws and regulations.
This effectively forces foreign companies to invest in local processing centres if they want to continue their operations in the Chinese personal banking industry.