Core Viewpoint - The implementation of the "Management Measures for Anti-Money Laundering and Anti-Terrorist Financing in the Precious Metals and Gemstone Industry" by the People's Bank of China signifies an enhancement in the regulatory framework for anti-money laundering (AML) within the precious metals and gemstones sector, addressing potential vulnerabilities previously exploited by criminals [1][4][10]. Regulatory Framework - The new management measures expand the scope of AML obligations to include the entire precious metals and gemstones industry, defining the entities subject to these regulations as those legally engaged in the spot trading of precious metals and gemstones within China [1][4]. - The threshold for reporting large transactions has been raised from 50,000 RMB to 100,000 RMB, requiring institutions to report cash transactions at or above this amount within five working days [4][5]. Risk Mitigation - The precious metals and gemstones sector is identified as a high-risk area for money laundering and terrorist financing due to the high value, liquidity, and relative anonymity of transactions [5][10]. - Institutions are mandated to conduct customer due diligence for cash transactions equal to or exceeding 100,000 RMB, which serves as a critical checkpoint to identify potential risks [5][6]. Compliance and Accountability - The management measures require institutions to maintain customer identity information for at least ten years, extending the previous five-year requirement, thereby enhancing record-keeping practices [6]. - Institutions are held accountable for their AML responsibilities, with legal repercussions for negligence or failure to comply, including criminal liability for serious offenses [6][7]. Collaborative Oversight - The measures advocate for a collaborative regulatory framework involving self-regulation within the industry, encouraging information sharing among trading venues and industry organizations under the guidance of the People's Bank of China [7]. - Internal training programs are emphasized to improve employees' understanding and execution of AML regulations, fostering a culture of compliance within the industry [7][10]. Industry Preparedness - The management measures are set to take effect on August 1, 2023, and are expected to elevate the compliance standards within the precious metals and gemstones industry, necessitating proactive measures from institutions to align with the new regulations [10].

Regulatory Changes - The People's Bank of China has issued new regulations requiring reporting of cash transactions exceeding 100,000 RMB or equivalent foreign currency in the precious metals and gemstones sector, effective from August 1, 2025 [3][4][8] - The regulations aim to establish a systematic regulatory framework to prevent money laundering and terrorist financing risks in the precious metals and gemstones trading sector [5][6] Compliance Requirements - Institutions must conduct customer due diligence based on the risk status of the customer before or after transactions, especially for cash transactions of 100,000 RMB or more [5][6] - A full-process management system is mandated, requiring institutions to establish internal controls for anti-money laundering, designate responsible personnel, and conduct regular risk assessments [6][8] Record Keeping and Reporting - Transaction records must be retained for at least 10 years, and any suspicious transactions, regardless of amount, must be reported promptly [7][8] - Institutions are required to submit large transaction reports within five working days of the transaction occurring [8] Market Trends - International gold prices have risen over 25% in the first half of 2025, driven by safe-haven demand and central bank purchases [9][10] - Experts predict that gold prices will continue to experience upward momentum due to ongoing geopolitical tensions and a weakening dollar [9][11]

Core Viewpoint - The People's Bank of China has introduced new regulations requiring reporting of cash transactions exceeding 100,000 RMB or equivalent foreign currency in the gold and diamond sectors, effective from August 1, 2025, to combat money laundering and terrorist financing risks [3][6]. Group 1: Regulatory Framework - The new regulations are part of the "Anti-Money Laundering and Anti-Terrorist Financing Management Measures for Precious Metals and Gemstone Practitioners" [3][6]. - The regulations apply to various institutions involved in precious metals and gemstones, including the Shanghai Gold Exchange and the China Jewelry Association [6]. - The measures aim to establish a systematic regulatory framework to mitigate risks associated with large cash transactions in the precious metals and gemstones market [6]. Group 2: Reporting Requirements - Institutions must report any cash transaction of 100,000 RMB or more within five working days of the transaction [10]. - All suspicious transactions, regardless of amount, must be reported immediately [10]. - Transaction records and customer identity information must be retained for at least ten years [9][10]. Group 3: Risk Management and Compliance - Institutions are required to conduct customer due diligence based on the risk profile of the client before or after transactions [7]. - A risk-based approach will be adopted, with enhanced scrutiny for high-risk institutions and simplified measures for low-risk entities [7]. - Institutions must establish internal controls for anti-money laundering, appoint dedicated personnel, and conduct regular risk assessments [7][8]. Group 4: Legal and Operational Implications - The regulations impose legal responsibilities on regulatory personnel and self-regulatory organizations, with severe penalties for violations [10]. - Group entities must coordinate their anti-money laundering efforts, ensuring compliance across all branches [10].