Banks to check for illegal forex activity

China's foreign exchange regulator has ordered major State banks to check for possible illegal activity in the currency market, it said Tuesday.

Banks are being asked to examine cross-border deals involving derivatives and other innovative currency products that may have violated its regulations, the State Administration of Foreign Exchange (SAFE) said in a statement posted on its website.

These checks will help banks "curb illegal foreign exchange operations and criminal activities" and limit their risk exposure, SAFE said.

This audit will run from January to May.