Compliance Margins are applicable to overseas banking direct participants of CIPS that have no commercial presence in the People's Republic of China, to ensure their compliance with laws, regulations and rules related to RMB cross-border business and relevant business rules of CIPS, as well as to bear the losses caused by their violation of rules and agreements. (Commercial presence refers to the establishment and operation of legal entities or branches, including parent banks, branches and subsidiaries, within the territory of the People's Republic of China, for the purpose of providing services.)
The amount of Compliance Margins shall not be less than 15% of the minimum funding. Under special circumstances, the amount should be verified with the consent of the relevant financial regulatory authority.