Individual deposit and withdraw cash above 50 thousand yuan should register, what signal?

2022-07-02 0 By

From March, cash withdrawals will be subject to new rules.From March 1, 2022, the measures for the Management of Customer Due Diligence of financial institutions and the Preservation of Customer identity Information and Transaction records issued by the central Bank and other three departments will be officially implemented.The measures stipulate that financial institutions, such as commercial banks, rural cooperative banks, rural credit cooperatives and rural banks, shall identify and verify the identity of the clients and understand and register the source or use of the funds when they deposit or withdraw cash of RMB 50,000 yuan or FOREIGN currency equivalent of US $10,000 or more for natural person clients.Subsequently, “Personal cash withdrawal over 50,000 yuan need to register the source of funds” was searched on Weibo, attracting attention.Why introduce such measures?In a word, it’s for anti-money laundering.Related department head in answer a reporter’s question, points out that in recent years, along with the financial products and business model changes, the financial sector anti-money laundering work to appear some new challenges, in order to promote our country money laundering and terrorist financing risk prevention ability, need to seek the methods to further improve the system of anti-money laundering regulations, strengthen the anti-money laundering regulations.China New Business Reporter noted that on the same day that the Measures were issued, the People’s Bank of China, the Ministry of Public Security and 11 other departments announced that they would launch a three-year nationwide crackdown on money laundering crimes from January 2022 to December 2024 to resolutely curb the spread of money laundering and related crimes.Previously, the central bank piloted large-amount cash management in Hebei province from July 1, and In Zhejiang Province and Shenzhen city from October 1, 2020.Hebei individuals deposit or withdraw more than 100,000 yuan, Shenzhen individuals deposit or withdraw more than 200,000 yuan, Zhejiang individuals deposit or withdraw more than 300,000 yuan to register.The trial period is 2 years.There is no doubt that anti-money laundering efforts are stepping up.Dong Ximiao, chief researcher of Zhaoland Finance, told Singapore Finance that cash is anonymous and untraceable, and large amounts of cash are often used for illegal activities such as money laundering and tax evasion, endangering the country’s economic and financial order.Especially in today’s non-cash payment is very convenient environment, the proportion of cash use is declining, ordinary depositors have been relatively rare to use large amounts of cash.Dong Ximiao said, therefore, the three departments issued new regulations, referring to international prevailing standards to further supplement and improve customer due diligence requirements, help to improve the anti-money laundering supervision system, crack down on illegal cash use demand, improve the anti-money laundering work level, reduce money laundering and other criminal acts, maintain financial security.Will it bring inconvenience to ordinary depositors to deposit and withdraw money?Dong ximiao believes that the new method has little impact on ordinary customers. First of all, the situation of individuals withdrawing 50,000 yuan in cash is really rare. Diversified non-cash payment methods, such as mobile payment and digital RMB in the pilot project, can already meet People’s Daily needs without having to use cash.Secondly, even if you need to deposit and withdraw more than 50,000 yuan of cash, at present, you just need to fill in a large cash business table. You should check the use of withdrawals and the source of deposits, and you are not required to issue certification materials, which has little impact on the convenience of deposits and withdrawals.”If you are open and aboveboard, upright and straight, you are not afraid of regulations, as long as you fill in clearly.””There is nothing to worry about if you don’t do something wrong. Understand the bank’s good intentions.””To prevent money laundering and support this decision.”Many netizens also expressed support for the new rules.In addition, there is a concern about the news of cash withdrawals, two private banks announced that they will stop doing cash business.Among them, Liaoning Zhenxing Bank issued a notice to stop operating cash at the counter and ATM. Upon the approval of the competent People’s Bank of China, it will stop operating cash deposits or withdrawals at the counter, change, damaged coins exchange, ATM deposits or withdrawals and other cash services from March 1, 2022.Beijing Zhongguancun Bank issued a notice on the suspension of cash receipt and payment business, which will be suspended from April 1, 2022 after reporting to relevant regulatory authorities.Singapore Finance noted that Beijing Zhongguancun Bank and Liaoning Zhenxing Bank are both privately owned banks that were established in 2017.Both banks cited increasing efforts to develop online businesses and focus resources on improving their e-banking capabilities as a reason for the suspension of cash services.In Dong Ximiao’s opinion, there are 19 private banks in China at present. Private banks are “one line at a time”, with fewer offline outlets and a small proportion of cash business. However, the investment cost of cash business is relatively high.”There is not going to be a wholesale withdrawal of cash in the banking sector, so there is no need to read too much into it.”Dong Ximiao said.Source: Procuratorial Daily