【Japan Himalaya League】 Author: Kevin wang  Translator: SPS

On January 30, the Chinese Communist Party tightened financial control during the Spring Festival. The three departments jointly issued a document requiring banks to identify and verify the identity of the customer and understand and register the source or use of funds for a single cash deposit or withdrawal of more than RMB 50,000 or the foreign currency equivalent of USD 10,000. The policy will take effect on March 1.

The Epoch Times reported that the official website of the People’s Bank of China released the latest news: the three departments of the People’s Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities and Regulatory Commission jointly issued the “Administrative Measures for Financial Institutions’ Customer Due Diligence and the Preservation of Customer Identity Information and Transaction Records” (referred to as the “Measures”), which will come into force on March 1, 2022.

Article 10 of the “Measures” mentions that when commercial banks, rural cooperative banks, rural credit cooperatives, village banks and other financial institutions handle cash deposits or withdrawals of RMB 50,000 or more or foreign currency equivalent to more than USD 10,000 for natural person customers, the identity of the client should be identified and verified, and the source or purpose of the funds should be understood and registered.

The “Measures” require development financial institutions, policy banks, commercial banks, rural cooperative banks, rural credit cooperatives, village and township banks, and other financial institutions and institutions engaged in remittance business to provide cash remittance, banknote exchange, bill redemption, physical precious metal trading, and sales of various financial products to customers who do not open accounts in their institutions with a one-time and single transaction amount of RMB 50,000 or more or foreign currency equivalent of more than USD 10,000.

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The “Measures” also require securities companies, futures companies, securities investment fund management companies, and other institutions engaged in fund sales to sell various financial products to customers who do not open accounts in their institutions and whose transaction amount is more than RMB 50,000 or more or the foreign currency equivalent of more than USD 10,000.

In addition, non-bank payment institutions establish business relationships with customers by opening payment accounts, etc., and sell registered prepaid cards to customers or sell bearer prepaid cards at a time of more than RMB 10,000;  Customers who have opened a payment account with an institution provide payment transaction processing and the transaction amount is more than RMB 10,000 or the equivalent of USD 1,000 in a foreign currency, or the cumulative amount of bilateral funds received and paid within 30 days is more than RMB 50,000 or the equivalent of USD 10,000 in foreign currency.

According to the Measures, in response to the above three situations, financial institutions shall conduct customer due diligence, register basic customer identity information, and keep copies or photocopies of customers’ valid identity documents or other identity certification documents.

According to the report, the “Measures” quickly aroused heated discussions among the public, with some people saying, “My own money, whatever I do with it?”

Reference Link: 

中共收紧控制 个人存取5万要登记资金来源


Edited & Posted by: Ranting