The central bank responded that individuals should register cash deposits and withdrawals of more than 50,000 yuan: it will not affect residents’ normal cash deposits and withdrawals

2022-05-29 0 By

Our reporter Tan Zhijuan Beijing since March 1, 2022, the People’s Bank of China, bank of China insurance regulatory commission, China Securities Regulatory Commission jointly issued by the financial institutions customer due diligence and client id information and transaction records management method “(hereinafter referred to as the” method “) will be officially implemented.Article 10 of the measures, which is closely related to everyone, has attracted market attention since its release.”Method” regulation: commercial Banks, rural cooperative Banks, rural credit cooperatives, village Banks and other financial institutions deal with single 50000 yuan of above for natural person customer or foreign currency more than 10000 dollars in cash equivalent access to business, shall identify and verify customer’s identity, to understand and the source of the registered capital or purpose.Will it affect ordinary depositors’ deposits and withdrawals?Industry personage thinks, this “method” to average customer influence is not big.First of all, it is really rare for individuals to deposit and withdraw 50,000 yuan in cash. Diversified non-cash payment methods, such as mobile payment and digital RMB in the pilot project, can already meet People’s Daily needs without having to use cash.Secondly, even if you need to deposit and withdraw more than 50,000 yuan of cash, at present, you just need to fill in a large cash business table. You should check the use of withdrawals and the source of deposits, and you are not required to issue certification materials, which has little impact on the convenience of deposits and withdrawals.In this regard, the People’s Bank of China said that the implementation of this regulation by financial institutions will not affect residents’ normal cash deposits and withdrawals, nor will the degree of business convenience be affected.Under normal circumstances, financial institutions do not require customers to fill out information or provide proof materials, financial institutions directly to the customer after the simple ask understand cash access business and registration related situation, only found a reasonable reason to suspect that trading transaction apparently unusual, suspected of money laundering and other illegal and criminal activities, to further understand the situation to the customer.It is understood that the deposit and withdrawal business of the resident’s legal income has been strictly protected by law in China. “Voluntary deposit” and “freedom of withdrawal” are clearly stipulated in the Commercial Banking Law, which are also the basic principles that financial institutions should follow in handling cash deposit and withdrawal business.Financial institutions’ implementation of the measures will not affect individuals’ normal cash deposits and withdrawals, the central bank said.In recent years, in order to prevent telecom fraud, money laundering and other illegal and criminal activities, many financial institutions from the concept of customer as the center, when dealing with large cash withdrawal business on the source and use of funds for the necessary understanding and tips, formed some experience.When studying and drafting the Measures, the financial regulatory authorities summarized and unified the relevant practices of financial institutions, which is also conducive to maintaining the consistency of the business handling standards of various financial institutions.The People’s Bank of China also pointed out that, in the next step, the People’s Bank of China will guide financial institutions to formulate implementation rules. While earnestly fulfilling the obligations of anti-money laundering, the People’s Bank of China should strictly implement the principle of least and necessary to understand the information of registered customers and not increase the burden of customers.Especially for the elderly and other groups who use more cash, financial institutions should take the initiative to provide more friendly and convenient services.At the same time, we should also pay attention to strengthen the prevention of fraud and financial knowledge publicity.At the same time, the central bank also stressed that strengthening cash withdrawal business management is the requirement for financial institutions to fulfill anti-money laundering obligations, in line with the international standards of anti-money laundering.Related departments according to the central bank chief explained, “method” is based on the anti-terrorism act the anti-money laundering act and other laws and regulations, in order to prevent and curb money laundering and terrorist financing activities, regulate financial institutions customer due diligence, client id information and transaction records behavior and formulate administrative rules, directly regulating object is financial institutions.”The relevant provisions on personal cash deposits and withdrawals in the Measures are in line with the requirements of the current international anti-money laundering standards, and are internationally accepted measures to prevent money laundering activities.Financial Action Task Force (FATF) international anti-money laundering standard clearly requires that financial institutions should carry out due diligence on cash transactions exceeding a certain amount. As a member of FATF, China should implement the requirements of international anti-money laundering standard.At present, major countries around the world have similar requirements for cash transactions above a certain amount.”Said the central bank concerned department head.According to the above central bank relevant department bureau chief introduction, from the statistics, at present China’s more than 50,000 YUAN of cash withdrawal business number only accounted for about 2% of all cash withdrawal business, “measures” the provisions of the article 10 on the whole to customers for cash business little impact.(Edited by Hao Cheng and proofread by Peng Yufeng)