Core Viewpoint - China should seize the opportunity of the new round of FATF evaluations to continuously enhance its anti-money laundering (AML) standards and risk prevention capabilities, aligning its AML work with international standards and moving towards a "risk-based" refined management era [1][19]. Regulatory Adjustments - The People's Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission jointly released a draft for public consultation on the "Management Measures for Customer Due Diligence and Customer Identity Information and Transaction Record Keeping" [2]. - The new draft removes previous requirements for banks to verify customer identities for cash transactions exceeding 50,000 RMB, which had been a point of contention [2][9]. Internal Training and Implementation - Financial institutions are initiating new rounds of training focused on identifying high-risk scenarios and strengthening AML due diligence [5][7]. - Despite the draft's release, banks are still required to understand the source or purpose of large cash transactions, reflecting ongoing internal AML standards [3][4][12]. Enhanced AML Measures - The draft introduces several targeted AML measures, including prohibiting simplified due diligence in high-risk scenarios, monitoring specific sensitive groups, and controlling associations with high-risk regions [6][14]. - Financial institutions must establish mechanisms to stay updated on high-risk countries and implement enhanced due diligence for transactions from these regions [6][18]. Alignment with International Standards - The release of the draft signifies a further alignment of China's AML risk management with international standards, particularly in preparation for the upcoming FATF evaluation [16][19]. - The FATF's previous evaluations highlighted areas for improvement in China's AML framework, including the need for increased transparency in beneficial ownership information and enhanced regulatory measures [17]. Future Directions - The implementation of the draft is expected to refine China's AML regulatory framework, emphasizing continuous customer due diligence and enhancing the transparency of beneficial ownership [14][19]. - Financial institutions are adopting advanced technologies like big data and AI to improve suspicious transaction detection mechanisms, ensuring compliance with evolving AML standards [18].