Core Viewpoint - The People's Bank of China has officially released the "Management Measures for Anti-Money Laundering and Anti-Terrorist Financing for Precious Metals and Gemstone Practitioners," which will come into effect on August 1, 2025, marking a systematic establishment of anti-money laundering requirements in the precious metals and gemstones trading sector [1][4]. Group 1: Regulatory Framework - The new regulations encompass all domestic institutions engaged in the spot trading of precious metals and gemstones, requiring them to adhere to strict anti-money laundering obligations when cash transactions reach or exceed RMB 100,000 or its equivalent in foreign currency [4]. - The regulations emphasize the importance of "customer due diligence," mandating institutions to effectively identify and verify customer identities and understand the purpose and source of funds for transactions [4][5]. - The People's Bank of China retains the authority to adjust the cash transaction reporting threshold based on changes in money laundering risks, indicating that the current RMB 100,000 standard may not be fixed [4][5]. Group 2: Role of Industry Self-Regulation - Industry self-regulatory organizations, such as the Shanghai Gold Exchange and the China Jewelry Association, are tasked with establishing an "industry anti-money laundering self-regulatory mechanism" under the guidance of the People's Bank of China [4]. - This self-regulatory mechanism will be responsible for developing industry standards, organizing risk alerts and training, coordinating suspicious transaction reporting, and evaluating member institutions [4]. Group 3: Risk-Based Supervision - The regulations adopt a "risk-based" supervisory principle, allowing the People's Bank of China to assess the money laundering risk levels of institutions and implement differentiated regulatory measures [5]. - Institutions are required to establish their own risk assessment mechanisms, conducting comprehensive evaluations at least every three years and performing special assessments before launching new products or services [5]. - Customer due diligence is highlighted as a core defense, requiring institutions to initiate due diligence when cash transactions are suspected of being related to money laundering or when there are doubts about customer identities [5].

Core Viewpoint - The recent news regarding the requirement to report cash transactions over 100,000 RMB for precious metals purchases is primarily aimed at combating money laundering and terrorist financing, and it is expected to have minimal impact on ordinary consumers' purchasing behavior [1][2][3]. Regulatory Framework - The new regulation, titled "Management Measures for Anti-Money Laundering and Anti-Terrorist Financing for Precious Metals and Gemstone Practitioners," mandates that institutions must perform anti-money laundering duties for cash transactions exceeding 100,000 RMB or its equivalent in foreign currency, effective from August 1, 2025 [2][6]. - The regulation applies to various entities involved in the precious metals and gemstones industry, including retail and recycling businesses [3][4]. Impact on Consumers - Individual consumers purchasing precious metals or jewelry will only be affected if they use cash exceeding 100,000 RMB; transactions made via credit or debit cards are exempt from this requirement [3][4]. - Experts indicate that cash transactions over this threshold are uncommon among individual consumers, suggesting that the regulation will not significantly disrupt normal purchasing activities [4]. Rationale for Cash Limit - The 100,000 RMB cash limit is designed to balance regulatory effectiveness with cost considerations, aligning with international standards for anti-money laundering practices [6][7]. - This limit is consistent with international guidelines, where cash transactions above approximately 10,750 RMB (15,000 USD) require customer due diligence [7]. Industry Context - The inclusion of precious metals and gemstones in anti-money laundering regulations is deemed necessary due to the high value density and liquidity of these assets, which can facilitate money laundering and terrorist financing activities [8][9]. - The new measures are part of a broader effort to enhance compliance and regulatory oversight in the industry, responding to the evolving nature of money laundering techniques [10].

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 to combat money laundering and terrorist financing [1][2]. Group 1: Regulatory Framework - The newly released "Management Measures for Anti-Money Laundering and Anti-Terrorist Financing in Precious Metals and Gemstone Industries" mandates that institutions must report large cash transactions within five working days [1]. - The regulations will take effect on August 1, 2025, and are aimed at enhancing the anti-money laundering framework in the precious metals and gemstones sector [1][2]. Group 2: Industry Characteristics - Precious metals trading is considered a high-risk area for money laundering due to its large transaction amounts and strong liquidity [2]. - The term "precious metals" includes gold, silver, platinum, and their various forms, while "gemstones" refers to natural stones like diamonds and jade [2]. Group 3: Compliance Obligations - Institutions must conduct customer due diligence based on the risk profile of clients, especially for cash transactions exceeding 100,000 RMB [3]. - Enhanced due diligence is required when there are reasonable grounds to suspect money laundering activities or doubts about the authenticity of customer identity information [3].

Core Viewpoint - The People's Bank of China has issued new regulations to enhance anti-money laundering and counter-terrorism financing measures in the precious metals and gemstones industry, raising the reporting threshold for large cash transactions from 50,000 RMB to 100,000 RMB, effective August 1 of this year [2][3]. Group 1: Regulatory Changes - The new regulation requires institutions to report cash transactions of 100,000 RMB or more, or equivalent foreign currency, within five working days of the transaction [2]. - The previous threshold for reporting was set at 50,000 RMB or equivalent foreign currency, indicating a significant increase in the cash transaction reporting limit [3]. Group 2: Compliance Obligations - Institutions must conduct customer due diligence based on the "Know Your Customer" principle when transactions exceed 100,000 RMB or if there are reasonable grounds to suspect money laundering activities [3][4]. - The regulation emphasizes the importance of verifying the authenticity, validity, and completeness of customer identity information, especially when there are doubts regarding previously obtained data [4].

Core Points - The People's Bank of China has issued the "Management Measures for Anti-Money Laundering and Counter-Terrorist Financing for Precious Metals and Gemstone Practitioners," effective from August 1, 2025 [2][4] - The threshold for reporting large cash transactions has been raised to RMB 100,000 or equivalent foreign currency [4][5] Group 1: Regulatory Framework - The measures require practitioners to fulfill anti-money laundering obligations for cash transactions of RMB 100,000 or more [4][5] - Practitioners must submit large transaction reports to the Anti-Money Laundering Monitoring and Analysis Center within five working days of the transaction [2][6] Group 2: Definition and Scope - The term "practitioners" refers to entities legally engaged in the spot trading of precious metals and gemstones within China [5] - Precious metals include gold, silver, platinum, and their various forms, while gemstones refer to natural stones like diamonds and jade [5] Group 3: Customer Due Diligence - Practitioners are required to conduct customer due diligence based on the "Know Your Customer" principle, especially for transactions exceeding RMB 100,000 [6][8] - Enhanced due diligence is mandated for customers from high-risk jurisdictions or those identified as politically exposed persons [6][8] Group 4: Record Keeping - Customer identity information and due diligence records must be retained for at least ten years after the business relationship ends [7] Group 5: Internal Controls and Risk Management - Practitioners must establish internal controls for anti-money laundering, appoint a dedicated person to oversee compliance, and regularly assess their money laundering risk [8] - The measures allow for simplified internal control requirements for institutions assessed as having a lower risk of money laundering [8]

Core Viewpoint - The People's Bank of China has issued a new regulation regarding anti-money laundering and anti-terrorist financing for institutions engaged in precious metals and gemstones trading, effective from August 1, 2025 [1]. Group 1: Regulatory Framework - Institutions must fulfill anti-money laundering obligations for cash transactions of 100,000 RMB or more, or equivalent foreign currency [1]. - A due diligence process is required based on customer characteristics and transaction nature for transactions meeting the threshold [1]. - Institutions are required to submit a large transaction report to the Anti-Money Laundering Monitoring and Analysis Center within five working days of the transaction [1]. Group 2: Definition of Entities - The term "institutions" refers to traders legally engaged in the spot trading of precious metals and gemstones within the People's Republic of China [1]. - "Precious metals" include gold, silver, platinum, and their various forms, while "gemstones" refer to natural gemstones like diamonds and jade in all forms [1].

Core Viewpoint - Starting from August 1, 2025, cash transactions exceeding 100,000 RMB for purchasing gold, diamonds, or jade must be reported, as per the new anti-money laundering regulations issued by the People's Bank of China [2][3]. Group 1: Regulatory Framework - The new regulations aim to establish a systematic regulatory framework to prevent money laundering and terrorist financing risks in the precious metals and gemstones trading sector [3][4]. - The regulations require that institutions must submit large transaction reports within five working days for cash transactions of 100,000 RMB or more [3][29]. - Customer identity information must be retained for at least 10 years after the business relationship ends or after the transaction is completed [6][32]. Group 2: Compliance Obligations - Institutions are required to conduct customer due diligence based on the risk status of the customer before or after transactions [5][20]. - If customers refuse to cooperate with due diligence measures, institutions can restrict or terminate transactions and report suspicious activities [6][24]. - Institutions must maintain confidentiality regarding customer identity and transaction information obtained during anti-money laundering efforts [10]. Group 3: Risk Management - Institutions must assess their money laundering risk and establish internal controls accordingly, with simplified requirements for those assessed as lower risk [16][19]. - Regular evaluations of money laundering risks must be conducted, with a maximum cycle of three years [19]. - Enhanced due diligence measures are required for customers or transactions from high-risk countries or involving politically exposed persons [25][26]. Group 4: Reporting Requirements - Institutions must report large transactions exceeding 100,000 RMB to the Anti-Money Laundering Monitoring and Analysis Center within five working days [29]. - Any suspicion of money laundering activities must also be reported, regardless of the transaction amount [30]. - The specific formats and requirements for reporting large and suspicious transactions will be defined by the Anti-Money Laundering Monitoring and Analysis Center [30][31].

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," aimed at preventing money laundering and terrorist financing activities in the industry [1][2]. Group 1: General Provisions - The measures are designed to strengthen and standardize anti-money laundering (AML) efforts in the precious metals and gemstones sector, in accordance with relevant laws [2][3]. - Institutions engaged in cash transactions of 100,000 RMB or more (including 100,000 RMB) must report large transactions to the Anti-Money Laundering Monitoring and Analysis Center within five working days [2][24]. Group 2: Responsibilities of Practitioners - Practitioners must fulfill their AML obligations and cooperate with AML investigations, ensuring confidentiality of customer identity and transaction information [6][5]. - Institutions are required to establish internal controls based on their exposure to money laundering risks and business scale, with higher-risk institutions subject to stricter regulatory measures [12][14]. Group 3: Self-Regulatory Mechanism - The industry is to establish a self-regulatory mechanism for AML, guided by the People's Bank of China, which includes responsibilities such as risk assessment and reporting [7][8]. - Self-regulatory organizations must ensure that their AML staff possess the necessary professional capabilities and ethics [8][10]. Group 4: Customer Due Diligence - Institutions must conduct customer due diligence based on the risk profile of clients, especially for transactions exceeding 100,000 RMB or when there are suspicions of money laundering [15][19]. - Enhanced due diligence measures are required for clients from high-risk jurisdictions or those involved in suspicious activities [20][21]. Group 5: Reporting Obligations - Institutions must submit suspicious transaction reports to the Anti-Money Laundering Monitoring and Analysis Center if they suspect any transactions are related to money laundering, regardless of the amount involved [25][26]. - Customer identity and transaction records must be retained for at least ten years, ensuring they can be traced for AML purposes [27][26]. Group 6: Legal Responsibilities - The People's Bank of China and its branches will impose penalties for violations of the AML measures, including self-regulatory breaches and failure to report suspicious activities [31][33]. - Institutions must take special preventive measures against entities listed in specific sanction lists related to terrorism and money laundering risks [28][29].

Core Points - 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 outlines the anti-money laundering obligations for practitioners in this sector [1] - The new regulations will take effect on August 1, 2025, and require institutions to establish internal controls, conduct customer due diligence, report large and suspicious transactions, and enhance money laundering risk management [1][2] - The measures highlight the high-risk nature of precious metals and gemstones for money laundering and terrorist financing due to large transaction amounts and high cash transaction ratios [1][2] Summary by Sections Regulatory Framework - The regulations apply to traders engaged in the spot trading of precious metals and gemstones within China, including gold, silver, platinum, diamonds, and jade [2] - Even small-scale or ancillary businesses involved in precious metals and gemstones must comply with anti-money laundering obligations [2] Customer Due Diligence - Institutions are required to complete customer due diligence before or after transactions, especially when transaction amounts reach 100,000 yuan or there are reasonable suspicions of money laundering [2] - A risk-based approach will be adopted, with heightened scrutiny for high-risk institutions and simplified procedures for low-risk entities [2] Operational Requirements - Institutions must establish a comprehensive anti-money laundering management system, appoint dedicated personnel, and conduct regular money laundering risk assessments, with a maximum assessment cycle of three years [2] - Customer identity information and transaction records must be retained for at least ten years, and services must be halted for entities on terrorist lists or UN sanctions [3] Legal Accountability - A mechanism for accountability is established for regulatory personnel, self-regulatory organization staff, and practitioners, with severe violations potentially leading to judicial referral [3]

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, enhancing the anti-money laundering regulations in the precious metals and gemstones industry [1][4]. Summary by Relevant Sections Regulatory Changes - The new regulations expand the scope of anti-money laundering obligations to cover the entire supply chain of precious metals and gemstones, including trading, processing, and recycling [8][11]. - The threshold for reporting large transactions has been raised from 50,000 RMB to 100,000 RMB, requiring practitioners to report cash transactions that meet or exceed this amount [4][5]. Compliance Requirements - Practitioners must adhere to the "Know Your Customer" principle, conducting due diligence based on customer characteristics and transaction nature, particularly for transactions of 100,000 RMB or more [4][10]. - Customer identity information must be collected and retained for at least 10 years after the business relationship ends, an increase from the previous 5-year requirement [5][10]. Industry Impact - The regulations are expected to fill existing regulatory gaps in cash transactions within the precious metals sector, which is often associated with high risks of money laundering and terrorist financing [7][9]. - The broad definition of "precious metals and gemstones" includes all aspects of the industry, significantly increasing the number of entities subject to these regulations [8][11]. Reporting Obligations - Practitioners are required to submit suspicious transaction reports if they suspect any connection to money laundering activities, regardless of the transaction amount [10][12]. - The management of large and suspicious transaction reporting may be facilitated through industry associations, which could help streamline compliance for numerous small businesses [11][12]. Recommendations for Implementation - Industry experts suggest that practitioners should enhance their internal controls and compliance systems to meet the new regulatory requirements effectively [12]. - There is a call for increased collaboration with regulatory bodies to improve data sharing and transaction monitoring capabilities [12].