Translated by: MOS Information Team—baoliaofen
On January 30, the Chinese Communist Party (CCP) tightened financial controls during the Chinese New Year, with three departments jointly issuing a document requiring individuals to identify and verify the identity of customers, as well as to understand and register the source or use of funds for any cash withdrawals of more than RMB 50,000 or in foreign currency equivalent of more than USD $10,000 in a single transaction. The policy will take effect on March 1.
The Epoch Times reports that the official website of the People’s Bank of China (PBOC) has released the latest news: the PBOC, the CCP Banking and Insurance Regulatory Commission and the CCP Securities Regulatory Commission have jointly issued the “Administrative Measures on Customer Due Diligence and Retention of Customer Identification Data and Transaction Records of Financial Institutions” (referred to as the “Measures”), which will come into effect on March 1, 2022.
Article 10 of the Measures states that commercial banks, rural cooperative banks, rural credit cooperatives, village/town banks and other financial institutions that handle cash deposits and withdrawal for private customers in a single transaction with RMB 50,000 yuan or more, or foreign currency equivalent of more than USD $10,000, shall identify and verify the customer’s identity, and to register the sources or uses of money.
The Measures requires developmental financial institutions, policy banks, commercial banks, rural cooperative banks, rural credit cooperatives, village banks and other financial institutions and institutions engaged in foreign exchange business to provide cash remittances, cash exchange, bill payment, physical precious metals trading, sales of various financial products and any other one-time transactions for customers who do not open an account with the institution. The amount for any single transaction can exceeds RMB $50,000 yuan or more, or in foreign currency equivalent of more than USD $10,000.
“Measures” also requires securities companies, futures companies, securities investment fund management companies and other institutions engaged in fund sales business, to sell various financial products to customers who do not open accounts with the institution and the amount of a single transaction is suggested to be above RMB 50,000 yuan or more or foreign currency equivalent of more than $10,000 U.S.
In addition, the Measures promotes non-bank payment institutions to open payment accounts and other ways to establish business relationships with customers, as well as the sale of registered prepaid cards or a one-time sale of bearer prepaid cards of RMB 10,000 yuan or more to customers; provide payment transaction processing for customers who do not open a payment account with this institution through signing contracts or tying cards, with the amount of a single transaction of RMB 10,000 yuan or more or foreign currency equivalent of more than USD $1,000, or 30 days of bilateral collection and payment of funds in an accumulated amount of RMB 50,000 yuan or more, or foreign currency equivalent of more than $10,000.
The “Measures” states, in view of the above three cases, financial institutions should carry out customer due diligence, and register the basic information of customers identities, and retain copies or photocopies of valid customer identity documents or other identification documents.
The report said that this document of “Measures” quickly aroused public debate upon its released. Some people said, “It is my own money, how can you tell me how I should spend it?”
Editor in Chief: Maverick
Proofread/Published by: Maverick
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