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].

Core Viewpoint - 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 transactions exceeding 50,000 RMB, addressing previous controversies surrounding this regulation [1][2]. Group 1: Changes in Regulations - The new draft eliminates the requirement for customer due diligence for cash deposits and withdrawals, which was previously set at 50,000 RMB or equivalent to 10,000 USD [1][2]. - Financial institutions are still required to conduct customer due diligence for other financial services exceeding 50,000 RMB or equivalent to 10,000 USD, such as account opening, cash remittance, and trading of financial products [2][4]. - The shift from a "rules-based" to a "risk-based" approach in anti-money laundering (AML) efforts is emphasized, allowing for differentiated measures based on the risk associated with various financial services [3][5]. Group 2: Risk-Based Approach - The new draft reflects a focus on a "risk-based" approach, which assesses the risks associated with different business types and customer profiles, rather than applying uniform rules [3][5]. - Specific provisions for low-risk customers and enhanced due diligence for high-risk users are included, promoting a more tailored regulatory framework [4][5]. - The draft aims to align China's AML regulations with international standards, particularly in preparation for the upcoming fifth round of international mutual evaluations by the Financial Action Task Force (FATF) [5].

Core Points - The People's Bank of China, along with the National Financial Regulatory Administration and the China Securities Regulatory Commission, has drafted a consultation paper for a new management method regarding customer due diligence and the preservation of customer identity information and transaction records [1] - The consultation draft does not mention the previous requirement for individuals to register the source of funds for cash deposits or withdrawals exceeding 50,000 RMB [1] - Financial institutions are required to conduct customer due diligence for one-time financial services with transaction amounts exceeding 50,000 RMB or equivalent to 10,000 USD, and to retain copies of valid identification documents [1] - The management method emphasizes the use of electronic means for high-quality preservation of customer data and transaction records, mandating that such records be kept for at least 10 years after the end of the business relationship or transaction [1] Related Information - The People's Bank of China is enhancing risk-based anti-money laundering regulatory requirements [2] - The central bank plans to revise the rules for the RMB cross-border payment system [2] - Starting from August 1, cash purchases of gold exceeding 100,000 RMB will need to be reported [2]

Core Viewpoint - The article discusses the draft of the "Management Measures for Customer Due Diligence and Customer Identity Information and Transaction Record Keeping by Financial Institutions," aimed at preventing money laundering and terrorist financing activities while regulating customer due diligence and record-keeping practices in financial institutions [1] Group 1 - The draft does not mention the previous requirement for individuals to register the source of funds for cash withdrawals exceeding 50,000 RMB [1] - Financial institutions are required to conduct customer due diligence for one-time financial services with transaction amounts exceeding 50,000 RMB or equivalent to 10,000 USD, and to record basic customer identity information [1] - Financial institutions must retain copies of valid identification documents or other proof of identity for customers [1] Group 2 - The draft specifies that customer identity information and transaction records must be retained for at least 10 years after the business relationship or transaction ends [1] - Financial institutions are encouraged to gradually implement electronic methods for high-quality preservation of customer information and transaction records [1]

Core Points - The People's Bank of China, along with the National Financial Regulatory Administration and the China Securities Regulatory Commission, has released a draft regulation for public consultation regarding customer due diligence and the management of customer identity information and transaction records [1][2] - The draft regulation aims to implement anti-money laundering laws and prepare for international assessments [2] Summary by Category Regulatory Changes - The new draft regulation removes the strict requirement from the 2022 version that mandated financial institutions to understand and record the source or purpose of cash transactions exceeding 50,000 RMB for individual clients [2] - Financial institutions, including policy banks, commercial banks, rural cooperative banks, and others, are required to conduct customer due diligence for transactions over 50,000 RMB or equivalent to 10,000 USD, and to retain copies of valid identification documents [2] Historical Context - The previous regulation issued in January 2022 required financial institutions to identify and verify the identity of individual clients for cash transactions exceeding 50,000 RMB, including understanding and recording the source or purpose of funds [2]