The new regulation of ＂Personal access to cash exceeding 50,000 needs to be registered＂ is suspended! Central bank： technical reasons

　　On February 21st, the website of the central bank announced that the Measures for the Administration of Customer Due Diligence of Financial Institutions and the Preservation of Customer Identity Data and Transaction Records (hereinafter referred to as the Measures), which was originally scheduled to take effect on March 1st, 2022, was suspended for technical reasons. Related business shall be handled according to the original regulations.

　　The relevant person in charge of the People’s Bank of China said that after the promulgation of the Measures, some small and medium-sized financial institutions proposed that the Measures put forward specific norms and requirements for different financial products and business models, and financial institutions needed to revise and improve their internal management systems, information systems and business processes, and conduct personnel training. Therefore, after research, it is decided to suspend the implementation of the Measures.

　　The above-mentioned person in charge also said that the People’s Bank of China will resolutely implement the decision-making arrangements of the CPC Central Committee and the State Council, always practice the people-centered development idea, and will continue to guide financial institutions to strengthen anti-money laundering work, further optimize services for the people while preventing risks, protect the people’s capital security and interests according to law, and continuously improve the quality and efficiency of financial services for the real economy, especially for small and medium-sized enterprises, improve the business environment and promote high-quality economic development.

　　The Measures were originally scheduled to come into force on March 1, 2022. Article 10 of the Measures stipulates that commercial banks, rural cooperative banks, rural credit cooperatives, rural banks and other financial institutions shall identify and verify the identity of customers, and understand and register the source or use of funds if they handle cash deposit and withdrawal business of RMB 50,000 yuan or more or foreign currency equivalent of US$ 10,000 or more for natural person customers.

　　The person in charge of the relevant departments of the central bank once told the media that the main purpose of implementing the Measures is to prevent and curb illegal and criminal activities such as money laundering and protect the safety and interests of the people’s funds. Financial institutions’ implementation of the provisions on personal cash deposit and withdrawal in the above measures will not affect the normal cash deposit and withdrawal business of residents, and the convenience of business will not be affected. Under normal circumstances, financial institutions do not need customers to fill in information or provide proof materials. Financial institutions can directly handle cash deposit and withdrawal business for customers and register relevant information after simple inquiry. Only when the transaction is obviously abnormal and there are reasonable reasons to suspect that the transaction is suspected of money laundering and other illegal and criminal activities, will they further understand the situation from customers. Strengthening the management of cash deposit and withdrawal business is a requirement for financial institutions to fulfill their anti-money laundering obligations, which is in line with international anti-money laundering standards.

　　The person in charge also revealed that statistically, at present, the number of cash deposit and withdrawal businesses exceeding 50,000 yuan in China only accounts for about 2% of all cash deposit and withdrawal businesses, and the above-mentioned regulations on personal cash deposit and withdrawal generally have little impact on customers’ handling of cash business.