They sound like the latest rules for an obscure board game – provide an ad hoc purpose of payment and generate an identification code using an index in Mandarin for the payment counterparty. In fact, these instructions offer a glimpse into the procedure for making offshore renminbi payments to banks or corporates in mainland China.
Similarly, translating data, client names and payment details from the present Chinese payment system (second-generation CNAPS – China's National Advanced Payments System) into a Society for Worldwide Interbank Financial Telecommunication (Swift)-friendly format makes the process just as complex for China-based entities making payments to offshore counterparties.
