Core Viewpoint - The People's Bank of China emphasizes the importance of enhancing the legal framework and financial regulatory system, transitioning from a "rules-based" to a "risk-based" approach in anti-money laundering regulations [1] Group 1: Legal and Regulatory Framework - The People's Bank of China is working on improving the legal system to ensure better financial regulation [1] - There is a focus on enhancing the anti-money laundering regulations, shifting towards a risk-based approach [1] - The bank aims to strengthen the institutional framework in the payment sector to protect users' legitimate rights and interests [1] Group 2: Credit Management and Administrative Procedures - The implementation of the Credit Industry Management Regulations is underway, with plans to develop detailed management methods and complaint handling procedures [1] - The People's Bank of China is compiling a list of responsibilities and administrative licensing guidelines to clarify boundaries and standards for approval processes [1] - This initiative aims to solidify the institutional guarantees for lawful performance of duties [1]

Core Viewpoint - The article discusses the transition of anti-money laundering (AML) efforts in China from a "rule-based" approach to a "risk-based" approach, emphasizing the need for financial institutions to adapt to the complexities of modern financial transactions [1][4]. Summary by Sections - The new draft of the "Management Measures for Customer Due Diligence and Customer Identity Information and Transaction Record Keeping" removes the requirement for banks to verify the source or purpose of cash deposits or withdrawals exceeding 50,000 RMB, which was a contentious rule in the previous version [2][3]. - The updated measures specify that while cash deposits do not require due diligence, other financial services such as account openings, cash remittances, and precious metal transactions exceeding 50,000 RMB or equivalent to 10,000 USD will still necessitate customer due diligence [3][5]. - The shift to a "risk-based" approach is highlighted, where financial institutions are encouraged to assess the risks associated with different services and clients, allowing for differentiated AML measures [3][4]. - The new draft also introduces simplified measures for low-risk clients and outlines enhanced due diligence for high-risk users, moving away from a one-size-fits-all approach [5]. - The launch of the new draft signifies China's ongoing efforts to align its AML framework with international standards, particularly in light of the upcoming fifth round of international mutual evaluations by the Financial Action Task Force (FATF) [6].