Core Viewpoint - The People's Bank of China has released the "Management Measures for Customer Due Diligence and Customer Identity Information and Transaction Record Retention" which emphasizes a risk-based approach to customer due diligence, balancing anti-money laundering risk prevention and optimizing financial services [1][5] Summary by Relevant Sections Customer Due Diligence - Financial institutions are required to conduct customer due diligence based on risk, with the principle of "Know Your Customer" guiding the identification and verification of customer identities and their beneficial owners [3][4] - The regulation cancels the previous requirement for cash withdrawals over 50,000 yuan to register the source of funds, aligning with the draft opinion [1][5] Risk Assessment - Banks will no longer uniformly inquire about the purpose of withdrawals; instead, they will assess the risk level and decide whether to conduct further inquiries based on the identified risks [3][4] - For higher money laundering and terrorist financing risks, enhanced due diligence measures must be taken, while lower-risk situations can follow simplified procedures [3][4] Cross-Border Transactions - The regulation specifies that for cross-border remittances, financial institutions must verify the accuracy of the remitter's information for amounts over 5,000 yuan or equivalent to 1,000 USD [4] - If there are reasonable grounds to suspect money laundering or terrorist financing, verification is required regardless of the amount [4] Industry Context - The introduction of these measures responds to the need for financial services to be efficient while addressing the rising threats of telecommunication fraud and online gambling [4] - The regulation aims to strike a balance between security and convenience in financial services, allowing for a more tailored approach to customer due diligence [5]

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 Viewpoint - The People's Bank of China has approved new regulations on customer due diligence and transaction record management, effective from January 1, 2026, emphasizing enhanced risk management for money laundering and terrorist financing [1] Group 1: Regulatory Framework - The new regulations were reviewed and approved during the 14th executive meeting of the People's Bank of China on October 11, 2025, with consent from the National Financial Regulatory Administration and the China Securities Regulatory Commission [1] - Financial institutions are required to implement strengthened due diligence measures and may impose reasonable restrictions on customers' transaction methods, scales, frequencies, and types of services if risks are identified [1] Group 2: Risk Management Measures - If a financial institution assesses that a customer's money laundering or terrorist financing risk exceeds its risk management capabilities, it must refuse to conduct business or terminate existing business relationships [1] - Financial institutions must adhere to relevant management regulations and procedures when implementing money laundering risk management measures, ensuring that they do not unlawfully freeze customer funds or take disproportionate actions against the identified risks [1] Group 3: Customer Rights Protection - The regulations stipulate that basic and essential financial services related to medical care, social security, and public utilities must be guaranteed for customers, regardless of the money laundering risk status [1]