Core Viewpoint - The People's Bank of China, along with the National Financial Regulatory Administration and the China Securities Regulatory Commission, has released a draft regulation aimed at standardizing customer due diligence and record-keeping practices for financial institutions, emphasizing risk-based approaches in customer identification and transaction monitoring [2][3]. Group 1: Regulatory Framework - The draft regulation outlines six categories of financial institutions required to comply with anti-money laundering obligations, including policy banks, commercial banks, rural cooperative banks, securities firms, insurance companies, and non-bank payment institutions [2]. - Financial institutions are prohibited from providing services to unidentified customers, opening anonymous accounts, or accounts under false identities [2][3]. Group 2: Customer Due Diligence Requirements - Non-bank payment institutions must conduct customer due diligence when establishing business relationships, such as opening payment accounts or selling prepaid cards above RMB 10,000 [3]. - Banks and non-bank payment institutions are required to perform due diligence on merchants they serve, documenting the identity of the merchants and their legal representatives [3]. Group 3: Cross-Border Transactions - For cross-border remittance transactions exceeding RMB 5,000 or the equivalent of USD 1,000, financial institutions must verify the identity of the remitter and ensure the accuracy of the information [4]. - Financial institutions acting as intermediaries in cross-border remittance must ensure complete transmission of remitter and payee information and take appropriate measures based on risk assessments [4].