TechFlow, November 29 — According to a report by Cailian She, three departments (the People's Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission) jointly issued the "Measures for Customer Due Diligence and the Preservation of Customer Identity Information and Transaction Records by Financial Institutions" yesterday.
The provision requiring registration of the source of funds when individuals deposit or withdraw cash exceeding 50,000 yuan has been removed, consistent with the previous draft for public comment.
Under the new rules, banks will no longer apply a blanket approach to questioning all customers during withdrawals. Instead, they will decide whether to conduct additional inquiries based on risk levels: in cases of higher money laundering risk, banks will strengthen due diligence to understand the source and purpose of funds; for low-risk situations, simplified measures will be applied.
