Heavy new rules!Personal cash withdrawal of 50,000 yuan or more to register the source of funds

2022-05-25 0 By

Recently, to improve the anti-money laundering supervision mechanism, to further improve China’s money laundering and terrorist financing risk prevention ability, the People’s Bank of China, bank of China insurance regulatory commission, China Securities Regulatory Commission recently issued by the financial institutions customer due diligence and client id information and transaction records management method “(hereinafter referred to as the” method “),Effective from March 1, 2022.One of the new rules, “individuals who deposit or withdraw more than 50,000 yuan in cash must register their sources of funds,” went viral on Weibo yesterday.Let’s take a look at the main provisions in the Measures.Personal access cash 50000 yuan of above need to registered capital source “method” stipulated in article 9, developmental financial institution, policy Banks, commercial Banks, rural cooperative Banks, rural credit cooperatives, village Banks and other financial institutions and is engaged in the remittance business institutions in handling the following business, should carry out customer due diligence, basic information and registration of customer,(1) establishing business relations with customers by opening an account or by other means agreed upon in an agreement;(2) Providing one-time transactions such as cash remittance, cash exchange, bill payment, trading of physical precious metals, and sales of various financial products for customers who have not opened accounts in the institution, and the transaction amount is more than RMB 50,000 yuan in a single transaction or the foreign currency equivalent is more than US $10,000.Article 10 stipulates that financial institutions such as commercial banks, rural cooperative banks, rural credit cooperatives, and rural banks shall identify and verify the identity of clients, and understand and register the source or use of funds when handling cash withdrawal and withdrawal business of RMB 50,000 yuan or FOREIGN currency equivalent of US $10,000 for natural person clients.Transaction, such as single 50000 yuan of above, such as securities institutions to carry out customer due diligence in article 12, points out that securities companies, futures companies, securities investment fund management companies and other institutions engaged in fund sales business in for the customer to deal with the following seven big business, should carry out customer due diligence, basic information and registration of customer,Keep the photocopy or photocopy of the client’s valid identity certificate or other identity certificate.The seven specific businesses are :(1) brokerage business;(2) Asset management business;(3) selling various financial products to customers who have not opened accounts with the institution and the transaction amount of a single transaction is more than RMB 50,000 or the foreign currency equivalent is more than US $10,000;(4) margin lending, stock pledge, agreed repurchase and other credit trading businesses;(5) otc derivatives trading and other over-the-counter business;(6) Underwriting and recommendation, financial adviser 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 that shall carry out customer due diligence as stipulated by the People’s Bank of China and the China Securities Regulatory Commission.Article 17 points out that non-bank payment institutions shall conduct due diligence on customers, register basic information of customers’ identities, and keep photocopies or photocopies of valid identity certificates or other identification documents of customers when handling the following businesses:(1) establishing business relations with customers by opening payment accounts or other means, or selling bearer prepaid cards to customers or selling bearer prepaid cards of more than RMB 10,000 yuan in a lump sum;(2) by signing or tied card and way to pay is not the agency to open accounts of the customers with payment transactions and transaction amount is single RMB or foreign currency equivalent amount more than $1000 of 10000 yuan of above, money within 30 days or bilateral foreign currency equivalent cash amount accumulative total more than 50000 yuan, or $10000 or more;In addition, article 8 states that a financial institution 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 use the identity of another person.Article 18 points out that Banks, non-bank payment institution specially engaged to provide a single service, should be specially engaged to carry out the customer’s due diligence, and registration of special merchants and its legal representative or chief basic identity information, retained specially engaged and its legal representative or chief valid identity certificate copies or photocopies or other identification documents.In article 19, the trust company to establish a trust or deal with the beneficial right of the trust for customers, at the time of transfer shall identify and verify the client identity, understand the source of the trust property, the identity of the registration of the trustor and the beneficiary basic information, and keep the client a copy of the valid identity certificates or other identification documents or photocopies.Article 20 for clients’ money is trust funds or property belonging to the trust property, financial institutions to establish business relations with customers or provide stipulated amount one-time transaction, shall identify the trustee and the trustee trust relationship, beneficiaries and other effective control of the trust property of natural person identity, to register their names and contact information.Article 21 an insurance asset management company, financial assets management companies, enterprise group finance companies, financial leasing companies, auto finance companies, consumer finance companies, currency brokerage companies, loan companies, finance companies and other financial institutions as determined by the People’s Bank of China, in the purpose of establishing business relations with customers, shall identify and verify customer’s identity,Register the basic information of the customer’s identity, and keep the photocopy or photocopy of the valid identity certificate or other identification documents of the customer.It is reported that the main contents of the revised measures include three aspects :(1) adjusting the name, style and scope of application of the measures.One is to replace “customer identification” with the term “customer due diligence” in the name and body of the regulation;Second, the general provisions highlight the basic principle of “risk-based”;Third, the customer due diligence in Chapter 2 shall be divided into two sections, “General Provisions” and “Other Provisions”, to clarify the general requirements of customer due diligence and the due diligence requirements under special circumstances respectively;Fourth, improve and expand the scope of application of the Measures to increase the number of non-bank payment institutions, wealth management companies and various new financial institutions.(2) The “risk-based” requirement shall be incorporated into the Measures.One is to require voluntary agencies to establish clear customer acceptance policies;Second, improve and emphasize the continuous due diligence regulations, requiring customer life cycle management into the requirements of continuous due diligence;Third, increase the requirements on strengthening due diligence and simplifying due diligence, and clarify the applicable situations and corresponding measures;Fourth, according to the business development and risk status of each financial industry, improve customer due diligence requirements of banking, securities, insurance, non-bank payment, trust, asset management and other industries.(III) Supplement and improve customer due diligence requirements.Supplement and improve wire transfers, beneficial owner identification, due diligence through third parties, correspondent banks, high-risk countries or regions, new technology (not face-to-face business), beneficiary identification of life insurance, customer due diligence requirements, and the timing of identity verification.The introduction of the Measures is to improve the anti-money laundering regulatory mechanism and further enhance the risk prevention ability of money laundering and terrorist financing in China.According to the measures, financial institutions should conduct an audit at least once a year for clients with the highest risk levels of money laundering or terrorist financing.Intensive due diligence measures, such as field visits, should also be taken to understand the customer’s financial or business status.Measures for the Administration of Customer Due Diligence of Financial Institutions and The Preservation of Customer Identity Information and Transaction Records, which was deliberated and approved by the People’s Bank of China at the 10th Executive Meeting of the People’s Bank of China on October 29, 2021 and approved by the China Banking And Insurance Regulatory Commission and China Securities Regulatory Commission on October 29, 2021, are hereby promulgated and shall come into force on March 1, 2022.To play the role of anti-money laundering in the construction of modern financial system and the expansion of two-way opening of financial industry, the background and significance of the measures were explained in the following answers to journalists’ questions in the Measures for The Management of Customer Due Diligence of Financial Institutions and The Preservation of Customer Identity Information and Transaction Records.1. What is the background of the measures?At the fourth Plenary Session of the 19th CPC Central Committee, it was proposed to uphold and improve the system of socialism with Chinese characteristics and modernize China’s system and capacity for governance.Opinions of The General Office of the State Council on Improving the Supervision System and Mechanism of Anti-money Laundering, Anti-Terrorist Financing and Anti-tax Evasion put forward clear requirements on the role of anti-money laundering in promoting the modernization of national governance system and governance capacity and maintaining economic and social security and stability.With the development and innovation of domestic financial services and the constant change of international anti-money laundering standards, the current Measures for the Management of customer Identification of Financial Institutions and the preservation of customer identity information and Transaction Records need to be further improved, so as to play the role of anti-money laundering in the construction of modern financial system and the expansion of two-way opening of financial industry.Ii. What is the significance of formulating the Measures?First, the formulation of the Measures is conducive to comply with the development of the financial industry and improve the risk prevention ability of money laundering and terrorist financing in China.In recent years, with the changes of financial products and business models, some new challenges have emerged in the anti-money laundering work in the financial industry. In order to enhance the risk prevention ability of money laundering and terrorist financing in China, it is necessary to formulate measures to further improve the anti-money laundering supervision system and strengthen the anti-money laundering supervision.Second, the formulation of the Measures is conducive to practicing the “risk-based” anti-money laundering concept and improving the anti-money laundering work level of financial institutions.At present, the concept of “risk-based” is not fully reflected in the customer due diligence work of financial institutions. Risk-based customer due diligence measures should be further emphasized to improve the efficiency of financial services on the basis of preventing the use of financial system to engage in criminal activities such as money laundering.Third, the formulation of measures is conducive to the integration of international anti-money laundering standards.According to the international evaluation of anti-money laundering, China needs to further clarify the relevant requirements of financial institutions’ customer due diligence, customer identity information and transaction record preservation, and constantly improve the anti-money laundering supervision system.Source: China Fund News, editor of this issue zheng Xin, leader of this issue, Zhou Huizheng, duty director, Huang Yuanlin, editor in chief, Lai Xiongwei, pay attention to Zhangzhou News