Bank holding a Chinese supplier payment: evidence
Prepare a clear transaction explanation backed by the order, invoice, supplier identity, beneficiary details and records showing where the payment funds came from. Confirm the bank's request through a trusted channel and explain discrepancies before submitting. Supplier records can be gathered with help from Cambridge China Bridge.
Confirm what the bank needs
Contact the bank through its app, your usual relationship manager or a telephone number you already trust. Ask for the case reference, the specific documents requested, the submission route and any response deadline. Ask whether the payment is held, rejected or returned before deciding what to do next.
HMRC guidance describes obtaining information about a transaction's purpose and intended nature as part of customer due diligence. Use the bank's actual request to shape your response; this checklist is preparation advice, not a promise of release. For payment structure and account safeguards, see how to pay Chinese suppliers safely.
Explain the purchase and reconcile the invoice
Describe the goods in ordinary language, their intended business use, the delivery destination and your relationship with the supplier. Attach the purchase order or contract, accepted quotation and invoice. Identify whether this payment covers samples, a production deposit, a balance or tooling, and point to the agreed payment trigger.
Reconcile the requested transfer with the invoice currency, total, earlier payments, credits and remaining balance. Explain freight or tooling billed separately. For a deposit before production, describe the current order stage rather than supplying shipping documents that do not yet exist. See purchase orders, proformas and commercial invoices for the roles of those documents.
Connect the supplier to the beneficiary
Gather the supplier's business licence, registered name, registration identifier, address and established contact details. Put the Chinese registered name beside any English trading name, with a labelled translation where useful. Compare the supplier named in the order and invoice with the beneficiary on the payment instruction. The factory identity guide covers the wider supplier check.
If an agent, exporter or another company receives the money, explain its role and attach documents connecting it to the purchase and payment arrangement. A different name needs explanation, not an assumption that the companies are interchangeable. Flag changed account details and verify them through an established contact before proceeding.
Show where the payment funds came from
Prepare records that trace the money into the paying account. For trading receipts, use relevant statements alongside customer invoices or accounting records. For borrowing, use the lending agreement and receipt of funds. For a director's contribution or group transfer, show who supplied the money, the arrangement and the transfer trail.
A current balance shows money is available but does not explain its origin. Match your explanation to the actual funding route, including any recent movement between accounts. If the bank also asks how accumulated wealth arose, ask what supporting records it wants rather than treating a balance screenshot as the complete answer.
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Submit securely with a consistent explanation
Use the submission channel confirmed directly with the bank. Avoid uploading financial records through an unexpected message link. Ask which statement pages are needed and whether unrelated entries may be redacted; keep the details needed to trace the funds visible. Never include passwords or security codes. Retain the submitted files and acknowledgement.
Write a covering note linking the buyer, goods, supplier, beneficiary, invoice, payment stage and funding source. Check it against every attachment and earlier response. Explain genuine discrepancies and request corrected documents where necessary; do not edit originals or invent missing evidence. Nominate a contact for follow-up, tell the supplier the payment is under review, and confirm payment status before attempting another transfer.
Frequently asked questions
Is an invoice enough for a bank compliance check?
Prepare more than the invoice: the order, purchase explanation, supplier and beneficiary details, and funding trail. Submit the documents the bank requests and explain any gaps.
What counts as source-of-funds evidence?
Use records tracing the payment money into your account, such as trading receipts, lending documents or contribution records alongside statements. Match the evidence to the actual funding route.
What if the supplier and bank account names differ?
Explain the beneficiary's role and provide documents connecting it to the purchase. Verify the arrangement through an established supplier contact and flag the mismatch to the bank.
Can I resend the payment through another bank?
Confirm the original payment's status first to avoid paying twice. Do not split or reroute the payment to bypass the review; respond to the evidence request and ask the bank about the next step.