The central bank interprets the relevant regulations on personal cash access and withdrawal: prevent money laundering and protect privacy

Source: Fast Technology

From March 1, 2022, the Measures for the Administration of Customer Due Diligence and The Preservation of Customer Identity Information and Transaction Records of Financial Institutions (Order No. 1) jointly issued by the Central Bank, the Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission will be formally implemented, and one of the provisions has aroused widespread concern: Commercial banks, rural cooperative banks, rural credit cooperatives, village and township banks and other financial institutions that handle a single cash deposit and withdrawal business of more than RMB 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 customers. Understand and register the source or use of funds.

#Personal deposit and withdrawal of more than 50,000 yuan to register # has also become a hot topic.

According to CCTV Financial Report, the heads of the relevant departments and bureaus of the central bank have made a detailed interpretation of this regulation, emphasizing that the implementation of this provision by financial institutions will not affect the normal cash deposit and withdrawal business of residents, nor will it affect the convenience of business.

According to reports, the main purpose of implementing Order No. 1 is to prevent and curb illegal and criminal activities such as money laundering, telecommunications fraud, illegal fund-raising, illegal pyramid schemes, cross-border gambling, and underground money banks, and to protect the safety and interests of the people's funds, especially the criminals who use the anonymity and difficulty of tracking cash to prefer to use cash for trading activities.

In recent years, mainland financial institutions have continuously strengthened money laundering risk management, discovered many suspected illegal and criminal activities, and protected the safety of people's funds.

The person in charge pointed out that the access and withdrawal business of residents' legitimate income has always been strictly protected by law in the mainland, and "voluntary deposits" and "freedom of withdrawal" are clearly stipulated in the Commercial Bank Law, which is also the basic principle that financial institutions should follow in handling cash deposit and withdrawal business.

Under normal circumstances, when depositing more than 50,000 yuan in cash, the financial institution will not require customers to fill in information or provide supporting materials, and will directly handle business and register relevant information after a simple inquiry and understanding.

Only when the transaction is found to be obviously abnormal and there are reasonable grounds to suspect that the transaction is suspected of illegal and criminal activities such as money laundering, the financial institution will further understand the situation from the customer.

In the next step, the central bank will guide financial institutions to formulate implementation rules, conscientiously fulfill anti-money laundering obligations at the same time, strictly implement the minimum and necessary principles to understand the registration of customer information, must not increase the burden of customers, especially for the elderly and other groups that use more cash, financial institutions should take the initiative to provide more friendly and convenient services.