When handling cash deposits and withdrawals on a single transaction of 50,000 yuan or more, or on foreign currency equivalent to up to $10,000, the identity of the individual customer shall be confirmed and verified, and the source or purpose of the funds shall be registered, according to the jointly order issued by the People’s Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission on January 19.
The order will take effect on March 1.
The new regulation drew immediate attention and debate online. Many expressed their support to the strict but necessary approach to tackle money laundry and other related illegal activities.
In recent years, illegal and criminal activities like telecommunications fraud, illegal fundraising and cross-border gambling have become rampant, seriously endangering public interest.
In 2021 alone, the public security organs investigated and handled more than 370,000 telecom fraud cases, according to media reports.
Strengthening the management of cash deposits and withdrawals is based on the requirement for financial institutions to fulfill their anti-money laundering obligations while complying with international standards for anti-money laundering, the central bank said.
Moreover, in general terms, the order is expected to produce a very limited impact on customers’ business given the fact that cash deposits and withdrawals over 50,000 yuan in China only account for about two percent of all cash deposits and withdrawals.
While conscientiously fulfilling the anti-money laundering obligations, the central bank will guide financial institutions to formulate detailed implementation rules, including validating identification of customers only when it is necessary and at the minimum level to avoid putting an extra burden on customers.
(Source: http://www.pbc.gov.cn/)
China’s central bank said on Monday (21, Feb, 2022) that it will postpone for technical reasons the implementation of a recent regulation that mandate financial institutions to verify clients’ identity and manage transaction records.
The regulation was originally set to come into effect on March 1. The regulation postponed on Monday required individuals to disclose the source and purpose of a cash withdrawal or deposit on a single transaction if the amount reaches 50,000 RMB or 10,000 USD, according to the National Business Daily, which drew widespread attention from the public.
According to a statement issued by the People’s Bank of China (PBC) on Monday, financial institutions across the country need to review their internal management mechanisms, information systems and business procedures, while implementing personal training in line with the different standards and requirements for a variety of financial products contained in the regulations.
(Source: https://www.globaltimes.cn/page/202202/1252811.shtml)