Core Viewpoint - The People's Bank of China has issued a new regulation aimed at anti-money laundering and counter-terrorism financing for precious metals and gemstones trading institutions, effective from August 1, requiring compliance for cash transactions exceeding 100,000 RMB or equivalent foreign currency [1][2]. Group 1: Regulatory Requirements - Institutions must submit a large transaction report to the Anti-Money Laundering Monitoring and Analysis Center within five working days for cash transactions of 100,000 RMB or more [2]. - The regulation defines precious metals as gold, silver, platinum, and related products, while gemstones include diamonds and jade [2][3]. Group 2: Risk Management - Institutions are required to conduct customer due diligence based on the "Know Your Customer" principle, especially for transactions exceeding 100,000 RMB or when there are suspicions of money laundering [3]. - Institutions must not provide services to unidentified clients or those using false identities and must take immediate action if invalid identification is detected [4]. Group 3: Risk Assessment - Institutions are mandated to regularly assess their exposure to money laundering risks, with evaluations not exceeding three years, and must reassess when significant changes occur in operations or environment [4]. - Prior to launching new products or services, institutions should evaluate the potential money laundering risks associated with these changes [4].

Core Viewpoint - The People's Bank of China has issued new regulations to enhance anti-money laundering (AML) measures in the precious metals and gemstones industry, raising the threshold for large transaction reporting from 50,000 RMB to 100,000 RMB, effective from August 1, 2025 [1][2]. Group 1: Regulatory Changes - The new regulation requires reporting of cash transactions of 100,000 RMB or more, or equivalent foreign currency, and mandates customer due diligence based on the nature of transactions and associated money laundering risks [2][4]. - The previous threshold for reporting was set at 50,000 RMB, established in a 2017 notification by the People's Bank of China [2][3]. - The definition of precious metals includes gold, silver, platinum, and their various forms, while gemstones encompass diamonds and jade [2]. Group 2: Industry Impact - The increase in the reporting threshold is linked to the rising gold prices over the past two years, as noted by industry experts [2]. - All businesses engaged in precious metals and gemstones trading, including retail and pawn shops, are required to comply with the new AML obligations starting August 1, 2025 [3][4]. - Feedback from industry stakeholders indicates that large cash transactions for gold and gemstones are not common, and many businesses have not yet received notifications regarding the new regulations [3][4]. Group 3: Customer Due Diligence - Institutions must collect and retain basic identity information from customers, including names, contact details, and identification documents, as part of their due diligence process [4]. - The reporting of large transactions must be completed within five working days of the transaction occurring [4]. - Experts suggest that the process for consumers remains straightforward, and normal purchases should not raise concerns for customers [4].

Core Viewpoint - The People's Bank of China has issued the "Management Measures for Anti-Money Laundering and Anti-Terrorist Financing for Precious Metals and Gemstone Practitioners," which will take effect on August 1, 2025, expanding the scope of anti-money laundering regulations to cover the entire industry chain of precious metals and gemstones [1][3]. Group 1: Regulatory Changes - The new regulations clarify the applicable entities, starting amount for reporting large transactions, and specific circumstances for customer due diligence, bringing all precious metals and gemstones businesses under anti-money laundering supervision [3][5]. - The threshold for submitting large transaction reports has been raised from 50,000 RMB to 100,000 RMB, requiring numerous precious metals and gemstone retail outlets to comply [3][6]. Group 2: Compliance Requirements - Practitioners must adhere to the "Know Your Customer" principle, conducting due diligence based on customer characteristics and transaction nature, particularly for cash transactions of 100,000 RMB or more [3][5]. - Institutions are required to verify customer identities using reliable identification documents and maintain records of essential customer information [3][5]. Group 3: Industry Context - The precious metals sector is considered a high-risk area for money laundering and terrorist financing due to the large transaction amounts and high liquidity associated with these assets [5]. - Criminal activities often involve purchasing large quantities of gold for quick cash conversion, which complicates the tracking of illicit funds, especially when cash payments are used [5][6].

Core Viewpoint - The People's Bank of China has issued new anti-money laundering and counter-terrorism financing regulations for precious metals and gemstones, effective from August 1, 2025, aimed at establishing a systematic regulatory framework to mitigate risks in the sector [1] Regulatory Scope and Applicable Entities - The new regulations cover a wide range of entities engaged in the spot trading of precious metals and gemstones within China, including members of the Shanghai Gold Exchange, Shanghai Diamond Exchange, and various industry associations [2] - Retailers such as small gold shops and jewelry stores are also required to comply with the anti-money laundering regulations if they engage in relevant spot trading activities [2] - The definition of precious metals includes gold, silver, platinum, and their various forms, while gemstones encompass diamonds, jade, and other natural gemstones [2] Transaction Reporting and Customer Due Diligence Requirements - A clear reporting standard for large transactions has been established, requiring institutions to report cash transactions exceeding RMB 100,000 or equivalent foreign currency within five working days to the Anti-Money Laundering Monitoring and Analysis Center [2] - This reporting threshold has been raised from RMB 50,000 as per previous regulations issued in 2017 [2] - Institutions must adhere to the "Know Your Customer" principle and conduct due diligence in specific situations, including when there are reasonable grounds to suspect money laundering activities [3] - Customer identity verification and transaction purpose understanding are essential components of the due diligence process [3] Information Retention and Reporting of Suspicious Transactions - Institutions are required to maintain a robust information retention mechanism, keeping customer identity data for at least 10 years after the business relationship ends, an extension from the previous 5-year requirement [3] - Any suspicious transactions, regardless of the amount, must be reported promptly to the relevant authorities [3]

Core Points - The People's Bank of China has issued new regulations to enhance anti-money laundering (AML) measures for precious metals and gemstones, raising the threshold for reporting large transactions from 50,000 RMB to 100,000 RMB, effective from August 1, 2025 [1][2]. Group 1: Regulatory Changes - The new regulation requires reporting of cash transactions of 100,000 RMB or more, or equivalent foreign currency, within five working days to the Anti-Money Laundering Monitoring and Analysis Center [2]. - The previous threshold for reporting was set at 50,000 RMB or equivalent to 10,000 USD, indicating a significant increase in the reporting limit [2]. Group 2: Institutions Covered - The regulations apply to all institutions engaged in the spot trading of precious metals and gemstones within the People's Republic of China [3][4]. - Various entities, including financial institutions and businesses involved in the sale and pawn of gold and gemstones, are required to comply with the new AML obligations [4]. Group 3: Industry Context - The precious metals trading sector is considered a high-risk area for money laundering and terrorist financing due to large transaction amounts and high liquidity [4]. - The evolving complexity of money laundering techniques necessitates stricter regulations to ensure financial security and stability [4].

Core Viewpoint - The People's Bank of China has issued a new regulation aimed at preventing money laundering and terrorist financing in the precious metals and gemstones sector, effective from August 1, 2025, requiring institutions to report large cash transactions of 100,000 RMB or more within five working days [1][3]. Group 1: Regulatory Framework - The new regulation establishes a systematic regulatory framework to mitigate risks associated with money laundering and terrorist financing in the precious metals and gemstones market [1]. - Precious metals include gold, silver, platinum, and their various forms, while gemstones refer to natural stones like diamonds and jade [1]. - Institutions involved in precious metals and gemstones trading, such as the Shanghai Gold Exchange and the China Gemstone and Jewelry Trade Association, are required to comply with the new regulations [1]. Group 2: Risk Management and Compliance - The regulation outlines seven characteristics of suspicious transactions, including sudden large transactions from inactive accounts and significant discrepancies in physical inventory [2]. - Institutions must conduct customer due diligence based on the risk profile of the client before or after transactions, especially for cash transactions of 100,000 RMB or more [2][3]. - A risk-based approach is mandated, with enhanced scrutiny for high-risk institutions and simplified measures for low-risk entities [3]. Group 3: Operational Requirements - Institutions are required to establish internal controls for anti-money laundering, appoint dedicated personnel, and conduct regular risk assessments, with a maximum cycle of three years [3]. - Any suspicious transaction, regardless of amount, must be reported immediately, and customer identity and transaction records must be retained for at least ten years [3]. - Special measures are mandated for transactions involving entities on terrorist lists or under UN sanctions, requiring immediate cessation of services and restrictions on fund transfers [3]. Group 4: Legal Accountability - The regulation includes a mechanism for accountability, imposing penalties on regulatory personnel, self-regulatory organization staff, and institutions for violations, with severe cases referred to judicial authorities [4].