The Measures for the Administration of Customer Due Diligence and The Preservation of Customer Identity Information and Transaction Records of Financial Institutions (hereinafter referred to as the Measures) issued by the central bank and other three departments make it clear that from March 1 this year, commercial banks, rural cooperative banks, rural credit cooperatives, village and township banks and other financial institutions shall identify and verify the identity of customers and understand and register the source or use of funds for natural person customers in a single cash deposit and withdrawal of more than 50,000 yuan or a foreign currency equivalent of more than 10,000 US dollars.
After the formal implementation of the Measures, will it bring inconvenience to the public for depositing and withdrawing funds? In this regard, Dong Ximiao, chief researcher of Zhonglian Finance, said in an interview with the People's Daily reporter that the mainland mobile payment is more developed, the proportion of cash in the flow is relatively small, and there are not many cases of individuals depositing and withdrawing 50,000 yuan or more in cash. At the same time, diversified non-cash payment methods such as mobile payment and digital yuan in the pilot can meet people's daily needs and have little impact on the deposit and withdrawal of natural person customers.
"The Measures do not limit the amount of depositors' single deposits and withdrawals, but when the amount of cash deposited or withdrawn exceeds 50,000 yuan or the equivalent amount of foreign exchange, a procedure needs to be added: fill in the source of funds when depositing, fill in the use of funds when withdrawing, and do not require the issuance of supporting materials." A business personnel of a large state-owned commercial bank told reporters that as long as it is a legitimate and legal source and purpose, it is possible to register cash business in accordance with regulations, and the provisions have little impact on the convenience of individual deposits and withdrawals.
The reporter combed and found that the central bank has carried out large-scale cash management work in Hebei Province since July 1, 2020, and in Zhejiang Province and Shenzhen City since October 1, 2020. Hebei personal deposit and withdrawal of more than 100,000 yuan, Shenzhen personal deposit and withdrawal of more than 200,000 yuan, Zhejiang personal deposit and withdrawal of more than 300,000 yuan to register, the pilot period is 2 years. At that time, the central bank said that the management of large amounts of cash would not significantly affect the daily economic activities of the public. As long as the customer fulfills the registration obligation in accordance with the regulations, there is no restriction on the large amount of cash deposit and withdrawal.
It is worth mentioning that the Measures point out that financial institutions should properly keep customer identity information and transaction records in accordance with the principles of safety, accuracy, integrity and confidentiality, and ensure that each transaction is reproducible enough to provide the information required for customer due diligence, monitoring and analysis of transactions, investigation of suspicious transaction activities, and investigation and handling of money laundering and terrorist financing cases.
"In recent years, with the changes in financial products and business models, some new challenges have emerged in the anti-money laundering work in the financial industry, and 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 anti-money laundering supervision through the formulation of the Measures." The relevant responsible persons of the three departments said in Response to a reporter's question in January this year.
Industry insiders believe that cash has the characteristics of anonymity and untraceability, and large amounts of cash are often used to carry out illegal acts such as money laundering and tax evasion, endangering the national economic and financial order.
According to the 2016 Revised Measures for the Administration of Large and Suspicious Transactions by Financial Institutions, financial institutions should report on cash deposits, cash withdrawals, cash settlements and sales, cash exchanges, cash remittances, cash bills releases, and other forms of cash receipts and expenditures for single or cumulative transactions of more than RMB50,000 (including RMB50,000) and foreign currency equivalents of more than US$10,000 (including US$10,000) on the same day, and for suspicious transactions, regardless of the amount, Should all be reported.
"The Measures further refine and improve the specific requirements for customer identity information and transaction record preservation, and supplement and improve the relevant requirements for customer due diligence with reference to international standards." Dong Ximiao said that the Measures are conducive to improving the anti-money laundering supervision system, cracking down on illegal cash use, improving the level of anti-money laundering work, reducing criminal activities such as money laundering and terrorist financing, and better maintaining financial stability and financial security.
Dong Ximiao pointed out that in the next step, financial institutions should improve business processes, use scientific and technological means to strengthen the monitoring of large and suspicious transactions, and improve the level of anti-money laundering. At the same time, it is necessary to strictly follow the Personal Information Protection Law and other laws and regulations, properly keep relevant information and data, and do a good job in protecting customer information and privacy. The public should also realize that it is their obligation to cooperate with financial institutions and specific non-financial institutions to do a good job in anti-money laundering work, and to do a good job in registering large amounts of cash access and withdrawal business.
Source: People's Daily News
![Central Bank: The relevant regulations on personal cash deposit and withdrawal will not affect the normal cash deposit and withdrawal business of residents[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)