New rules for cash access coming into effect from March

New rules for cash access will come into effect from March.

Starting from March 1, 2022, the new rules stipulate that commercial banks, rural cooperative banks, rural credit cooperatives, village banks and other financial institutions handling cash access for individual customers of RMB 50,000 yuan or more in a single transaction or foreign currency equivalent of USD 10,000 or more should identify and verify the identity of the customer and understand and register the source or use of funds.

Why should such a rule be introduced?

In answering questions from reporters, the person in charge of the relevant departments pointed out that in recent years, with changes in financial products and business models, some new challenges have emerged in the anti-money laundering work in the financial sector, and in order to enhance China's ability to prevent money laundering and terrorist financing risks, it is necessary to further improve the anti-money laundering regulatory system and strengthen anti-money laundering supervision through the formulation of the Measures.

Source:

Editor: CH

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