People’s Bank of China continues money laundering crackdown via new rules on customer transactions

China has continued its crackdown on money laundering risks with the People’s Bank of China (PBOC), the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission issuing new guidelines financial institutions must follow in regard to customer due diligence and transaction records.

Effective from 1 March, the measures will include a requirement for individuals depositing more than RMB50,000 (US$7,875) to register the source of and use for the funds. Likewise, domestic transfers of more than RMB500,000 (US$78,750) and overseas transfers of more than RMB200,000 (US$31,500) will come under “key supervision”.

According to a joint announcement issued by the three institutions in late January, the measures are an important step in implementing the central government’s anti-money laundering supervision systems in order to effectively prevent financial risks.

Specifically they will “improve the scope of anti-money laundering obligations in the financial industry, clarify the specific requirements for customer due diligence in each financial industry, emphasize risk-based due diligence measures and continuous due diligence measures, and require financial institutions to deal with high-risk situations.”

Source: https://www.asgam.com/index.php/2022/02/08/peoples-bank-of-china-continues-money-laundering-crackdown-via-new-rules-on-customer-transactions/