New rules of the central bank: 50,000 domestic cash transactions and 200,000 cross-border cash transactions need to be reported

Recently, Chinese Min min bank issued the Administrative Measures for the Reporting of Large Transactions and Suspicious Transactions by Financial Institutions (Chinese Min Min Bank Order [2016] No. 3, hereinafter referred to as the "Administrative Measures"), which came into effect on July 1, 2017. The relevant person in charge of the People's Bank of China answered reporters' questions on issues related to the "Administrative Measures."

Compared with the current regulations, the Administrative Measures adjust the RMB reporting standard for large cash transactions from "RMB200,000" to "RMB50,000", and the RMB-denominated large-value cross-border transaction reporting standard is "RMB200,000".

The specific reporting standards for large-value transactions are: First, large-value cash transactions of natural persons and non-natural persons, and the domestic and cross-border reporting standards are more than RMB 50,000 and foreign currency equivalents of more than US$10,000. Second, for large-value transfer transactions in the bank accounts of non-natural persons, the domestic and cross-border reporting standards are more than RMB 2 million and the equivalent value of foreign currency is more than US$200,000. Third, for large-value transfer transactions in the bank accounts of natural persons, the domestic reporting standard is more than RMB 500,000 and the foreign currency equivalent is more than 100,000 US dollars, and the cross-border reporting standard is more than RMB 200,000 and the foreign currency equivalent is more than 10,000 US dollars.

The relevant person in charge of the People's Bank of China said in response to a reporter's question that the current large-value transaction reporting standards can no longer fully meet the actual needs of anti-money laundering and combating and curbing related upstream crimes, and it is necessary to make appropriate adjustments to the large-value transaction reporting standards.

The Administrative Measures came into effect on 1 July 2017. A central bank spokesman said that it takes a certain amount of time for financial institutions to revise the system, build their own transaction monitoring standards and transform the system. Therefore, after the promulgation of the Administrative Measures and before the effective implementation, the Financial Institutions are given a transition period of half a year.

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