The supervision account can also be called the fund supervision account. Generally, an enterprise signs an account supervision agreement with a bank and opens an account, entrusting the bank to manage and use the funds in the account. Unlike the custody account, the funds in the supervision account are frozen before the transaction. This topic will introduce the related contents of supervised account, including account opening requirements, account opening process and the difference from custody account.
A supervision account is also called a third-party supervision account. Generally, an enterprise signs an agreement with a bank to entrust the bank with the management and use of funds for a specific purpose in a designated account. Both parties to the transaction must open an account in the supervision bank, and the bank is the main body of fund supervision, so as to ensure the safety of trading funds of buyers and sellers and safeguard the rights and interests of buyers and sellers.
It can be divided into two types of accounts:
1. Accounts related to specific bank credit projects: such as capital construction loans, decoration loans, real estate development loans, operating property loans, accounts receivable pledge financing, factoring financing, etc. ;
2. Designated accounts that need special management funds: such as special accounts for funds raised by listed companies and accounts for funds raised by private investment funds.
Take the real estate development loan account as an example. Property buyers will pay the down payment or the full amount to the supervision account opened by the developer in the bank, and the bank will freeze this part of the funds. After the transaction is successful, the funds are allocated to the developer, and if the transaction fails, they are allocated back to the buyers. In this way, the possible risk that one party defaults and the other party can't get back its own funds normally is avoided.
The difference between a supervision account and a custody account:
1. supervision account: refers to an intermediate business in which banks supervise the payment of specific funds at the request of customers to ensure that the funds are earmarked. The essence is to review the use of funds and the regulatory elements of the agreement, so that online banking can process and review the * * * custody voucher. Simply put, the escrow account can ensure the smooth return of funds.
2. Fund custody: basically around bank custody, it means that the bank, as a third party, directly manages and supervises the whereabouts and uses of investment funds during the transaction. Only the escrow account can be accessed, and the escrow account has no online banking payment authority. The bank will implement the payment operation in strict accordance with the agreement.