China Banking and Insurance Regulatory Commission, Measures for the Administration of Anti-money Laundering and Anti-terrorist Financing by Banking Financial Institutions

中国银行保险监督管理委员会银行业金融机构反洗钱和反恐怖融资管理办法

March 13, 2019 | BY

Susan Mok

Anti-money laundering and anti-terrorist financing is targeted at funding of new financial institutions

Clp Reference: 3610/19.01.29 Promulgated: 2019-01-29 Effective: 2019-01-29
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Promulgated: January 29, 2019

Effective: as of date of promulgation

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Applicability: For the purposes of these Measures, the term “banking financial institution” means a financial institution that attracts deposits from the public, such as a commercial bank, rural cooperative bank and rural credit cooperative, or a policy bank established in the People's Republic of China, or the China Development Bank.

For the administration of the anti-money laundering and anti-terrorist financing of financial asset management companies, trust companies, enterprise group finance companies, financial leasing companies, auto financing companies, money brokerages, consumer financing companies and other financial institutions approved to be established in China by the State Council's banking regulator, matters shall be handled with reference to the provisions on banking financial institutions hereof (Article 3).

Main contents: When a banking financial institution enters into a business cooperation arrangement with a financial institution, each party's anti-money laundering and anti-terrorist financing duties shall be specified in the cooperation agreement and they shall each bear the attendant legal obligations (Article 15).

A banking financial institution shall, in light of the characteristics of a customer or the nature of an account, rationally determine the risk levels of money laundering and terrorist financing, taking the customer as the unit, take the appropriate control measures based on the risk status and revise the risk level as appropriate based on continuous monitoring (Article 17).

Before launching a new service or applying new technology, a banking financial institution shall conduct a risk assessment on money laundering and terrorist financing (Article 18).

The banking regulator shall, in the course of its market access work, conduct stringent background checks of the promoter, shareholders, de facto controller, ultimate beneficiaries, directors and senior officers, review the sources and channels of the funds and block the criminals at the source from engaging in money laundering or terrorist financing activities by establishing an organization (Article 37).

Related legislation: PRC Anti-money Laundering Law

clp reference: 3610/19.01.29 promulgated: 2019-01-29 effective: 2019-01-29

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