The CENTRAL bank: The relevant provisions on personal cash withdrawals will not affect the convenience of business

2022-05-22 0 By

The person in charge of the relevant department or bureau of the People’s Bank of China has made an understanding of Article 10 of the Provisions on personal cash deposit and withdrawal in The Measures for The Administration of Due Diligence on Customers of Financial Institutions and Preservation of Customers’ Identity Information and Transaction Records (Order No. 1 of the Banking and Insurance Regulatory Commission of the People’s Bank of China [2022], hereinafter referred to as Order No. 1) :1. The main purpose of the implementation of Order 1 is to prevent and curb money laundering and other illegal and criminal activities, and to protect the safety and interests of people’s funds.In recent years, telecom fraud, illegal fund-raising, pyramid schemes, cross-border gambling, underground banking and other illegal and criminal activities have been rampant, seriously endangering the interests of the people.In 2021, the public security organs investigated more than 370,000 cases of telecom fraud, with victims all over the country.Among them, a prominent feature is that criminals prefer to use cash to conduct transactions because cash is anonymous and difficult to track.Financial institutions appropriately 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 overwhelming majority of the people.From practical experience, in recent years, China’s financial institutions continue to strengthen the risk management of money laundering, found a lot of suspected illegal and criminal activities, to protect the safety of people’s funds.For example, in September 2021, an elderly couple went to a bank in Zhengzhou to withdraw 95,000 yuan. When the bank staff asked the purpose of withdrawal, the elderly told them to buy health care products. For fear of being deceived, the staff repeatedly persuaded the elderly to beware of being deceived.During the period, because the old man did not take id card can not take large cash, the old man said that there are health products company outside the people sent him to take money, and insisted that the health products company personnel sent him home to take id.Staff in the process of uncle go home to get id card, kept persuasion, pacify the old lady, and contact the police.Finally, after the dissuasion of the police and the staff, the economic loss of 95,000 yuan was saved for the old man.Another example is in September 2018, an old man in the company of a man in his 30s asked to withdraw 100,000 yuan from a bank in Wuhan. In the process of withdrawal, the old man’s use of the money was not clear. Second, he said different things about the relationship with the man who came with him, and the man only looked at the old man from a distance, which was unusual.Bank staff in the spirit of customer responsibility, advised the elderly to contact their families to confirm the withdrawal of money, while reporting to the police.The man left the bank before police arrived.It turned out that the man had added wechat friends for the elderly online and introduced so-called “high-interest” financial services.In this case, the bank’s understanding of the purpose of the money saved the elderly from financial loss.2. The implementation of this regulation by financial institutions will not affect residents’ normal cash deposits and withdrawals, nor will its business convenience be affected.The deposit and withdrawal business of residents’ legitimate 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.The implementation of order 1 by financial institutions will not affect the normal cash deposit or withdrawal business of individuals.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 order no. 1, the financial authorities summarized and unified the relevant practices of financial institutions, which is also conducive to maintaining the consistency of business management norms of various financial institutions.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.In the next step, the People’s Bank of China will guide financial institutions to formulate implementation rules. While earnestly fulfilling anti-money laundering obligations, they 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.Iii. Personal information and customer privacy are protected by law.”Depositor confidentiality” is the basic principle established in the Commercial Banking Law. Financial institutions must keep strict confidentiality of personal information and customer privacy acquired in the process of business handling.In addition to complying with the civil Code, Personal Information Protection Law and other general laws, financial institutions also need to establish strict and complete customer information confidentiality systems in accordance with the commercial Banking Law, Anti-Money Laundering Law and other financial regulatory laws.Banks and their staff who leak personal information and customers’ privacy should bear legal responsibility, and even criminal responsibility if the circumstances are serious.The People’s Bank of China will continue to pay close attention to and guide financial institutions to strictly implement relevant regulations, strike a balance between preventing risks and optimizing services, and strictly protect citizens’ personal information and privacy.Strengthening the management of cash withdrawal business is a requirement for financial institutions to fulfill their anti-money laundering obligations and conform to international anti-money laundering standards.Decree no. 1 is a departmental regulation formulated in accordance with the Anti-Money Laundering Law, anti-Terrorism Law and other laws and regulations to prevent and curb money laundering and terrorist financing activities, and regulate customer due diligence, customer identity information and transaction record keeping of financial institutions, which directly regulates financial institutions.The relevant provisions of personal cash deposit and withdrawal business in Decree no. 1 are in line with the requirements of current international anti-money laundering standards, which is an internationally accepted practice of money laundering prevention.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.Statistically, at present, the number of cash deposit and withdrawal businesses over 50,000 RMB accounts for only about 2% of all cash deposit and withdrawal businesses in China, and the provisions of Article 10 of Order 1 have little influence on customers’ cash business on the whole.(SOURCE: CCTV Finance)