From March 1, the Administrative Measures for Customer Due Diligence and Customer Identity Information and Transaction Records of Financial Institutions (hereinafter referred to as "Order No. 1") issued by the Central Bank of China and other three departments will be formally implemented.
The Measures stipulate that commercial banks, rural cooperative banks, rural credit cooperatives, village and township banks and other financial institutions that handle cash deposits and withdrawals of more than RMB 50,000 yuan or the equivalent of more than 10,000 U.S. dollars in foreign currency for natural person customers shall identify and verify the identity of the customers, understand and register the source or use of funds.
The news quickly appeared on the hot search, netizens are generally concerned, in this way, will it bring inconvenience to personal access to cash?
In fact, don't worry. The responsible person of the relevant department and bureau of the People's Bank of China said that the implementation of the regulation by financial institutions will not affect the normal cash deposit and withdrawal business of residents, and the convenience of business will not be affected.
It will not affect the normal cash deposit and withdrawal business of residents
On the one hand, the relevant requirements of the new regulations for financial institutions have been improved, but the impact on cash deposits and withdrawals of natural person customers is very limited. First of all, mobile payment in the mainland is more developed, the proportion of cash in circulation is relatively small, and there are not many cases of individuals depositing and withdrawing cash of 50,000 yuan or more. Diversified non-cash payment methods such as mobile payment and digital yuan in the pilot can already meet people's daily needs. Secondly, if a natural person customer needs to deposit and withdraw more than 50,000 yuan in cash, he only needs to truthfully fill in the source or use information of the funds, that is, the procedure may fill in more information than before, but does not require the issuance of supporting materials, which has little impact on the convenience of deposit and withdrawal.
On the other hand, the new regulations will be conducive to conforming to the development of the financial industry and enhancing the mainland's financial risk prevention capabilities. 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 country's economic and financial security. Further refining and improving the specific requirements for customer identity information and transaction record preservation, and supplementing the relevant requirements for customer due diligence with reference to international standards, will help improve the anti-money laundering regulatory system and improve the level of anti-money laundering work of financial institutions, so as to play the role of anti-money laundering in the construction of a modern financial system and the expansion of the two-way opening up of the financial industry.
Therefore, the relevant requirements of the new regulations should be understood as a good intention. When individuals deposit and withdraw funds, they can fill in legal sources such as salary bonuses, freelance income, reasonable financial income or pensions, as well as legal purposes such as buying a car and buying a house, visiting relatives and traveling. Compared with the prevention of money laundering by unscrupulous elements, the stakes will be clear at a glance.
The main purpose is to prevent and curb money laundering, etc
The responsible person of the relevant department and bureau of the People's Bank of China pointed out that the main purpose of implementing Order No. 1 is to prevent and curb illegal and criminal activities such as money laundering and protect the safety and interests of the people's funds.
In recent years, illegal and criminal activities such as telecommunications fraud, illegal fund-raising, illegal pyramid schemes, cross-border gambling, and underground money banks have been rampant, seriously endangering the interests of the people. In 2021 alone, public security organs investigated more than 370,000 cases of telecommunications fraud, with victims all over the country. Among them, a prominent feature is that criminals use cash to be anonymous and difficult to trace, and prefer to use cash for trading activities. Financial institutions appropriately strengthen the management of cash deposit and withdrawal activities in accordance with the law, which is conducive to preventing illegal and criminal activities and protecting the fundamental interests of the broadest masses of the people.
Judging from practical experience, in recent years, mainland financial institutions have continuously strengthened the risk management of money laundering, discovered many situations of suspected illegal and criminal activities, and protected the safety of the people's funds.
Personal information and customer privacy are protected by law
The above-mentioned person in charge pointed out that "confidentiality for depositors" is a basic principle established in the Commercial Bank Law, and financial institutions must keep the personal information obtained and customer privacy strictly confidential in the process of business handling. In addition to complying with the requirements of general laws and regulations such as the Civil Code and the Personal Information Protection Law, financial institutions are also required to establish a strict and complete customer information confidentiality system in accordance with the requirements of financial regulatory laws such as the Commercial Bank Law and the Anti-Money Laundering Law. For the leakage of personal information and customer privacy, banks and their staff shall bear legal responsibility, and if the circumstances are serious, they shall also bear criminal liability.
The People's Bank of China will continue to pay attention to and guide financial institutions to strictly implement relevant regulations, grasp the balance between risk prevention and service optimization, and strictly protect citizens' personal information and privacy.
Comprehensive/Economic Daily WeChat (reporter Yao Jin), China News Network
Source: Economic Daily
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