Zhongxin Finance, Feb. 9 (Reporter Li Jinlei) From March 1, 2022, the "Administrative Measures for Financial Institutions' Customer Due Diligence and Customer Identity Information and Transaction Record Preservation" (referred to as "Order No. 1") issued by the central bank and other three departments. ”) will be officially implemented.

  The measures stipulate that commercial banks, rural cooperative banks, rural credit cooperatives, village and township banks and other financial institutions shall identify and verify the identity of the customers when they handle a single cash deposit and withdrawal business of RMB 50,000 or more or foreign currency equivalent to more than 10,000 US dollars for natural person customers. , understand and register the source or use of funds.

  It will not affect the normal cash deposit and withdrawal business of residents

  In this regard, the person in charge of the relevant department of the People's Bank of China stated that

the implementation of the regulations by financial institutions will not affect the normal cash deposit and withdrawal business of residents, and the degree of business convenience will not be affected.

  The above-mentioned person in charge pointed out that the deposit and withdrawal business of residents' legal income has always been strictly protected by law in my country. "Voluntary deposits" and "free withdrawal" are clearly stipulated in the Commercial Bank Law, which are also the rules that financial institutions should follow when handling cash deposit and withdrawal business. The basic principle.

The implementation of the relevant provisions of Order No. 1 by financial institutions will not affect the normal cash deposit and withdrawal business of individuals.

  In recent years, in order to prevent telecommunication fraud, money laundering and other illegal and criminal activities, many financial institutions have made necessary understanding and reminders on the source and use of funds when handling large-amount cash deposits and withdrawals from the concept of customer-centricity. Some empirical practices have been formed.

When the financial management department studied and drafted Order No. 1, the relevant practices of financial institutions were summarized and unified, which is also conducive to maintaining the consistency of the business management standards of various financial institutions.

Under normal circumstances, financial institutions do not need customers to fill in information or provide proof materials. Financial institutions can directly handle cash deposit and withdrawal services for customers and register relevant information after a simple inquiry. Only when the transaction is found to be obviously abnormal, there are reasonable reasons to suspect that the transaction is suspected of being involved. Only when there are illegal and criminal activities such as money laundering, will we further understand the situation from customers.

  In the next step, the People's Bank of China will guide financial institutions to formulate detailed implementation rules. While conscientiously fulfilling their anti-money laundering obligations, they must strictly implement the minimum and necessary principles to understand the information of registered customers, and not increase the burden on customers.

Especially for groups such as the elderly who use more cash, financial institutions should take the initiative to provide more friendly and convenient services.

At the same time, attention should also be paid to strengthening fraud prevention and financial knowledge promotion.

RMB data map.

Photo by Ai Qinglong

  Prevent and curb illegal and criminal activities such as money laundering

  The above-mentioned person in charge pointed out that

the main purpose of implementing Order No. 1 is to prevent and curb illegal and criminal activities such as money laundering, and to protect the safety and interests of people's funds.

  In recent years, illegal and criminal activities such as telecommunications fraud, illegal fundraising, illegal pyramid schemes, cross-border gambling, and underground banks have become rampant, seriously endangering the interests of the people.

In 2021 alone, the public security organs will investigate and handle more than 370,000 telecom fraud cases, with victims all over the country.

Among them, a prominent feature is that criminals prefer to use cash for transaction activities by taking advantage of the anonymous and untraceable characteristics of cash.

Financial institutions properly strengthen the management of cash deposits and withdrawals in accordance with the law, which is conducive to preventing illegal and criminal activities and protecting the fundamental interests of the broadest masses of the people.

  Judging from practical experience, in recent years, my country's financial institutions have continuously strengthened money laundering risk management, and found many cases of suspected illegal and criminal activities, protecting the safety of people's funds.

  Personal information and customer privacy are protected by law

  The above-mentioned person in charge pointed out that "secrecy for depositors" is a basic principle established in the Commercial Banking Law, and financial institutions must strictly keep personal information and customer privacy obtained during business processing.

In addition to complying with the requirements of general laws such as the Civil Code and the Personal Information Protection Law, financial institutions also need to establish strict and complete customer information in accordance with the requirements of the Commercial Banking Law, the Anti-Money Laundering Law and other financial regulatory laws. confidential.

For the disclosure of personal information and customer privacy, the bank and its staff should bear legal responsibility, and even criminal responsibility if the circumstances are serious.

  The People's Bank of China will continue to pay attention to and guide financial institutions to strictly implement relevant regulations, maintain a balance between risk prevention and service optimization, and strictly protect citizens' personal information and privacy.

  Compliant with international anti-money laundering standards

  The above-mentioned person in charge pointed out that

strengthening the management of cash deposit and withdrawal business is a requirement for financial institutions to fulfill their anti-money laundering obligations, which is in line with international standards for anti-money laundering.

  Order No. 1 is a departmental regulation formulated in accordance with the Anti-Money Laundering Law, the Anti-Terrorism Law and other laws and regulations to prevent and curb money laundering and terrorist financing activities, and regulate financial institutions’ customer due diligence, customer identity information and transaction record keeping. ,

whose direct normative objects are financial institutions.

  The relevant provisions on personal cash deposit and withdrawal business in Order No. 1 are in line with the requirements of the current international anti-money laundering standards, and are an internationally accepted practice for preventing money laundering activities.

The International Anti-Money Laundering Standard of the Financial Action Task Force (FATF) clearly requires that financial institutions should conduct due diligence on cash transactions exceeding a certain amount. As a member, my country should implement the requirements of the International Anti-Money Laundering Standard.

At present, major countries in the world have similar requirements for cash transactions above a certain amount.

  From a statistical point of view, the number of cash deposits and withdrawals of more than RMB 50,000 in my country currently only accounts for about 2% of all cash deposits and withdrawals. The provisions of Article 10 of Order No. 1 generally have little impact on customers' handling of cash business.

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