Recently, in order to improve the anti-money laundering supervision mechanism and further enhance the mainland's ability to prevent money laundering and terrorist financing risks, the Chinese Min min bank, the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission recently jointly issued the "Administrative Measures for Customer Due Diligence and Customer Identity Information and Transaction Record Preservation of Financial Institutions" (hereinafter referred to as the "Measures"), which will be implemented from 1 March 2022.
Today, a new rule in the "Measures" that "individuals need to register the source of funds for cash deposits and withdrawals of more than 50,000 yuan" appeared on Weibo's hot search.
According to the China Fund News, let's take a look at the main provisions in the "Measures"!
Individuals depositing and withdrawing more than 50,000 yuan in cash need to register the source of funds
Article 9 of the Measures stipulates that financial institutions such as development financial institutions, policy banks, commercial banks, rural cooperative banks, rural credit cooperatives, village and township banks and institutions engaged in foreign exchange business shall carry out customer due diligence when handling the following business, and register the basic information of the customer's identity, and retain copies or photocopies of the customer's valid identity documents or other identification documents:
(1) Establishing a business relationship with a customer by opening an account or through other means stipulated in an agreement;
(2) Providing one-time transactions such as cash remittance, cash exchange, bill redemption, physical precious metal trading, and sale of various financial products for customers who do not open an account with the institution, and the transaction amount is more than 50,000 yuan or the equivalent value of foreign currency is more than 10,000 US dollars.
Article 10 stipulates that commercial banks, rural cooperative banks, rural credit cooperatives, village and township banks and other financial institutions that handle cash deposits and withdrawals of a single RMB of more than 50,000 yuan or a foreign currency equivalent of more than US$10,000 for natural person customers shall identify and verify the identity of the customers, understand and register the source or purpose of the funds.
The transaction amount is more than 50,000 yuan per transaction
Securities and other institutions are required to conduct customer due diligence
Article 12 points out that securities companies, futures companies, securities investment fund management companies and other institutions engaged in fund sales business shall carry out customer due diligence when handling the following seven major businesses for customers, and register the basic information of the customer's identity, and retain copies or photocopys of the customer's valid identity documents or other identification documents.
The specific seven major businesses are:
(1) brokerage business;
(2) asset management business;
(3) Selling various types of financial products to customers who do not open accounts with the institution and the transaction amount is more than RMB50,000 or the equivalent in foreign currency of more than US$10,000;
(4) Credit trading businesses such as margin financing, stock pledges, and agreed repurchases;
(5) over-the-counter business such as over-the-counter derivatives trading;
(6) Underwriting and sponsorship, financial advisory for mergers and acquisitions and restructuring of listed companies, entrusted management of corporate bonds, recommendation of unlisted public companies, asset securitization and other businesses;
(7) other securities businesses prescribed by the Chinese Min min bank and the China Securities Regulatory Commission that shall carry out customer due diligence.
Prepaid cards above RMB 10,000, etc
Non-bank payment institutions are required to conduct due diligence
Article 17 points out that when handling the following business, non-bank payment institutions shall carry out customer due diligence, register the basic information of customer identity, and retain copies or photocopies of customers' valid identity documents or other identity documents:
(1) Establishing a business relationship with a customer by opening a payment account or other means, as well as selling a registered prepaid card to the customer or selling an underling prepaid card at one time of 10,000 yuan or more;
(2) Processing payment transactions for customers who do not open a payment account with the institution through methods such as signing a contract or tying a card, and the transaction amount is more than RMB 10,000 yuan or the equivalent in foreign currency of MORE than US$1,000, or the cumulative amount of bilateral receipt and payment of funds within 30 days is more than RMB 50,000 or the equivalent value of foreign currency is more than 10,000 US dollars;
Other scenarios
In addition, Article 8 states that financial institutions shall not provide services or conduct transactions with unidentified customers, shall not open anonymous or pseudonymous accounts for customers, and shall not open accounts for customers who fraudulently use the identity of others.
Article 18 points out that banks and non-bank payment institutions providing acquiring services to special merchants shall carry out customer due diligence on special merchants, register the basic information on the identity of special merchants and their legal representatives or responsible persons, and retain copies or photocopys of the valid identity documents or other identity documents of special merchants and their legal representatives or responsible persons.
Article 19: When establishing a trust or handling the transfer of the beneficiary right to a trust for a client, a trust company shall identify and verify the identity of the trustor, understand the source of the trust property, register the basic information on the identity of the trustor and beneficiary, and retain copies or photocopy of the client's valid identity documents or other identification documents.
Article 20 Where a customer's funds are trust funds or property belonging to trust property, when a financial institution establishes a business relationship with a customer or provides a one-time transaction of a specified amount or more, it shall identify the identity of the trustor, trustee, beneficiary, and other natural persons who ultimately effectively control the trust property, and register their names, titles, and contact information.
Article 21 Insurance asset management companies, financial asset management companies, enterprise group finance companies, financial leasing companies, auto finance companies, consumer finance companies, currency brokerage companies, loan companies, wealth management companies, and other financial institutions determined by the Chinese Min bank shall, when establishing business relations with customers, identify and verify the identity of customers, register the basic information of customer identity, and retain copies or photocopies of customers' valid identity documents or other identification documents.
Three major revisions
Expand the scope of application, and increase the number of non-bank payment institutions, wealth management companies and other financial institutions
The "risk-based" requirement runs through it
It is reported that the main contents of the revision of the "Measures" include three major aspects:
(1) Adjust the name, style and scope of application of the Measures.
The first is to use the term "customer due diligence" instead of "customer identification" in the name and body of the regulations; second, the general provisions highlight the basic principle of "risk-based"; the third is to divide the customer due diligence in Chapter 2 into two sections, "General Provisions" and "Other Provisions", respectively, to clarify the general requirements for customer due diligence and the due diligence requirements in special circumstances; the fourth is to improve and expand the scope of application of the Measures, adding non-bank payment institutions, wealth management companies and various new financial institutions.
(2) The "risk-based" requirement is permeated into the Measures.
The first is to require obligated institutions to establish a clear customer acceptance policy; the second is to improve and emphasize the continuous due diligence provisions, requiring the integration of customer life cycle management into the requirements of continuous due diligence; the third is to increase the requirements for strengthening due diligence and simplifying due diligence, clarifying the applicable circumstances and corresponding measures; and the fourth is to improve the customer due diligence requirements of banking, securities, insurance, non-bank payment, trust, asset management and other industries according to the business development and risk status of each financial industry.
(3) Supplement and improve the relevant requirements for customer due diligence.
Complement and improve the requirements for wire transfers, beneficiary owner identification, due diligence through third parties, correspondent banks, high-risk countries or regions, new technologies (non-face-to-face conducting business), life insurance beneficiary identification, customer due diligence requirements, and timing of identity verification.
Effective March 1
Audits are conducted once a year
The promulgation of the Measures is to improve the anti-money laundering supervision mechanism and further enhance the mainland's ability to prevent money laundering and terrorist financing risks. The Measures propose that financial institutions should conduct audits at least once a year for customers with the highest risk level of money laundering or terrorist financing; they should also take strengthened due diligence measures, such as understanding the economic or business conditions of customers through on-site visits and other means.
The Administrative Measures for Customer Due Diligence and Customer Identity Information and Transaction Record Preservation of Financial Institutions have been deliberated and approved by the 10th Executive Meeting of Min min bank in 2021 Chinese on October 29, 2021 and examined and approved by the Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission, and are hereby promulgated and implemented from 1 March 2022.
Give play to anti-money laundering in the construction of a modern financial system
Expand the role of the financial industry in areas such as two-way opening up
In the subsequent "Measures for the Management of Customer Due Diligence and Customer Identity Information and Transaction Records preservation of Financial Institutions", the background and significance of the promulgation of the Measures were explained.
I. What is the background of the promulgation of the Measures?
The Fourth Plenary Session of the Nineteenth Central Committee of the Communist Party of China proposed to uphold and improve the socialist system with Chinese characteristics and promote the modernization of the national governance system and governance capabilities. The Opinions of the General Office of the State Council on Improving the Regulatory System and Mechanisms for Anti-Money Laundering, Counter-Terrorist Financing and Anti-Tax Evasion put forward clear requirements for giving play to the role of anti-money laundering in promoting the modernization of the national governance system and governance capacity, and maintaining economic and social security and stability. With the development and innovation of domestic financial business and the continuous changes in international anti-money laundering standards, the current "Administrative Measures for customer identification and customer identity information and transaction record preservation of financial institutions" needs to be further improved to give play to the role of anti-money laundering in the construction of a modern financial system and the expansion of two-way opening up of the financial industry.
SECOND. What is the significance of formulating the Measures?
First, the formulation of the Measures is conducive to conforming to the development of the financial industry and enhancing the mainland's ability to prevent money laundering and terrorist financing risks. In recent years, with the changes in financial products and business models, some new challenges have emerged in the anti-money laundering work of the financial industry, in order to enhance the mainland's ability to prevent money laundering and terrorist financing risks, it is necessary to further improve the anti-money laundering supervision system and strengthen the anti-money laundering supervision through the formulation of the Measures.
Second, the formulation of the Measures is conducive to practicing the "risk-based" anti-money laundering concept and improving the level of anti-money laundering work of financial institutions. At present, the customer due diligence work of financial institutions does not fully reflect the concept of "risk-based", and it is necessary to further emphasize risk-based customer due diligence measures to improve the efficiency of financial services on the basis of preventing the use of the financial system to engage in criminal activities such as money laundering.
Third, the formulation of the Measures is conducive to integrating with international standards for anti-money laundering. The International Assessment on Anti-Money Laundering (AML) believes that the mainland needs to further clarify the relevant requirements for customer due diligence and customer identity information and transaction record keeping of financial institutions, and continuously improve the anti-money laundering regulatory system.
Source: China Fund News, Jimu News
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