Core Points - The People's Bank of China has announced the implementation of the "Management Measures for Customer Due Diligence and Customer Identity Data and Transaction Record Keeping" effective from January 1, 2026 [1] - Financial institutions are required to adhere to the principle of "Know Your Customer" and must identify and verify the identity of customers and their beneficial owners [1] - Institutions must continuously monitor and assess the overall status and transaction activities of customers to understand risks related to money laundering and terrorist financing [1] Summary by Sections - **Regulatory Framework** - The new management measures were approved during the 14th executive meeting of the People's Bank of China on October 11, 2025, and have received consent from the National Financial Regulatory Administration and the China Securities Regulatory Commission [1] - **Due Diligence Requirements** - Financial institutions must take appropriate due diligence measures based on customer characteristics and the nature and risk of transaction activities [1] - Enhanced due diligence measures are required for customers with higher risks of money laundering and terrorist financing, while simplified measures can be applied for lower-risk customers [1] - **Record Keeping and Data Management** - Institutions are mandated to securely, accurately, completely, and confidentially maintain customer identity data and transaction records [1] - The records must be sufficient to reconstruct each transaction and provide necessary information for due diligence, transaction monitoring, investigation of suspicious activities, and handling of money laundering and terrorist financing cases [1]

Core Points - The People's Bank of China, along with the National Financial Regulatory Administration and the China Securities Regulatory Commission, has drafted a consultation paper for a new management method regarding customer due diligence and the preservation of customer identity information and transaction records [1] - The consultation draft does not mention the previous requirement for individuals to register the source of funds for cash deposits or withdrawals exceeding 50,000 RMB [1] - Financial institutions are required to conduct customer due diligence for one-time financial services with transaction amounts exceeding 50,000 RMB or equivalent to 10,000 USD, and to retain copies of valid identification documents [1] - The management method emphasizes the use of electronic means for high-quality preservation of customer data and transaction records, mandating that such records be kept for at least 10 years after the end of the business relationship or transaction [1] Related Information - The People's Bank of China is enhancing risk-based anti-money laundering regulatory requirements [2] - The central bank plans to revise the rules for the RMB cross-border payment system [2] - Starting from August 1, cash purchases of gold exceeding 100,000 RMB will need to be reported [2]