People's Bank of China, China Banking and Insurance Regulatory Commission and China Securities Regulatory Commission, Measures for the Administration of Customer Due Diligence and Keeping of Customer Identity Information and Transaction Records by Financial Institutions (Draft Revisions for Comments)

Issued: March 31, 2021

Main contents: The Measures improve the requirements in respect of due diligence on customers of business (stages) that present relatively high risks, such as correspondent banking, exchange business, foreign dignitaries, internet and mobile communications.

A financial institution shall take measures to determine whether a customer and its beneficial owner are foreign dignitaries or senior officers of an international organization, or a person with a specific relation with such a foreign dignitary or senior officer. If a customer or its beneficial owner is any of the aforementioned persons, the financial institution shall take reasonable measures to understand the provenance and purpose of the funds, and if the financial institution is to establish or maintain a business relationship with it/him/her, it shall additionally secure approval from senior management and take enhanced ongoing monitoring measures in respect of the customer and its/his/her transactions (Article 35).