People's Bank of China, China Banking and Insurance Regulatory Commission and China Securities Regulatory Commission, Measures for the Administration of Anti-money Laundering and Anti-terrorist Financing by Institutions Engaging in Internet Financing (Trial Implementation)
中国人民银行、中国银行保险监督管理委员会、中国证券监督管理委员会互联网金融从业机构反洗钱和反恐怖融资管理办法 (试行)
November 14, 2018 | BY
Susan MokInternet financing institutions are required to guard against anti-money laundering and anti-terrorist financing
Promulgated: October 11, 2018
Effective: January 1, 2019
Applicability: These Measures shall govern institutions the establishment in the People's Republic of China of which has been approved by, or placed on the record with, the competent authority and that lawfully engage in internet financing business (an Institution).
The anti-money laundering and anti-terrorist financing work associated with internet finance business includes but is not limited to online payment, peer-to-peer lending, peer-to-peer lending information intermediation, equity-based crowdfunding, internet fund sales, internet insurance, internet trusts and internet consumer financing.
Where a financial institution or non-bank payment institution engages in internet finance business, it shall implement these Measures, unless the People's Bank of China or the State Council's relevant financial regulator provides otherwise, in which case such provisions shall be complied with (Article 2).
Main contents: An Institution shall take sustained customer identification measures, review customers' identity documentation and transaction records, and update customer identification-related supporting documents, data and information in a timely manner so as to ensure that the transactions currently being carried out by customers match with the customer information, customer business, risk situation, etc. that are known to it. With respect to high-risk customers, an Institution shall take reasonable measures to understand the source of their funds and increase the frequency of the reviews thereof (Article 10).
When a single or the aggregate cash receipt/expenditure transaction(s) of a customer in one day total(s) at least Rmb50,000 or a foreign currency equivalent of at least US$10,000, an Institution that is not a financial institution or non-bank payment institution shall submit a large transaction report within five working days after the transaction(s) (Article 16).
An Institution shall duly preserve information, data and documentation generated in the course of anti-money laundering and anti-terrorist financing-related tasks, such as customer identification, transaction monitoring and analysis, large transaction reporting and suspicious transaction reporting, carried out in line with the scope of preservation, period of preservation and technical standards specified in laws, regulations and industry rules so as to ensure that it can fully replicate each transaction and that the relevant work can be traced (Article 20).
Related legislation: PRC Anti-money Laundering Law
clp reference: 3610/18.10.11 issued: 2018-10-11 effective: 2019-01-01This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now