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Article 1. With a view to preventing money-laundering through financial institutions and regulating the financial institutions' report of large-sum transactions and doubtful transactions, these Measures are formulated in accordance with the Anti-money Laundering Law of the People's Republic of China, the Law of the People's Republic of China and other laws and administrative regulations. Article 2. The Measures shall apply to the following financial institutions lawfully established within the territory of the People's Republic of China: (1) commercial banks, urban credit cooperatives, rural credit cooperatives, postal savings institutions, policy banks; (2) securities companies, futures brokerage companies, fund management companies; (3) insurance companies, insurance asset management companies; (4) trust & investment companies, financial asset management companies, finance companies, financial lease companies, auto financing companies, currency brokerage companies; and (5) other financial institutions determined and announced by the People's Bank of China (hereinafter referred to as the PBC). The institutions engaging in the businesses of foreign exchange, payment and settlement, and sale of funds shall be governed by these Provisions regarding the anti-money laundering supervision and administration through financial institutions. Article 3. The People's Bank of China (hereinafter referred to as the PBC) and its branch institutions shall supervise and inspect the financial institutions' report of large-sum transactions and doubtful transactions. Article 4. The PBC shall establish China Anti-money Laundering Monitoring and Analyzing Center (hereinafter referred to as the CALMAC), which shall be responsible for accepting reports of large-sum transactions and doubtful transactions in RMB and in foreign currencies. If the CALMAC finds that the basic contents of a financial institution's report of large-sum transaction or doubtful transaction are not complete or there is any error in the report, it may issue to the reporting financial institution a notice of supplement or correction. The financial institution shall make a supplement or correction within 5 working days after it receives the notice of supplement or correction. Article 5. A financial institution shall set up special anti-money laundering posts and explicitly arrange full-time staff members to be responsible for reporting large-sum transactions and doubtful transactions. A financial institution shall work out internal management rules and operating procedures for the report of large-sum transactions and doubtful transactions according to these Measures and submit them to the PBC for archival purposes. A financial institution shall supervise and administer its subsidiaries' implementation of the rules on the report of large-sum transactions and doubtful transactions. Article 6. A financial institution and its staff members shall keep confidential the information about the report of doubtful transactions. None of them may provide such information to any entity or individual by violating the relevant provisions. Article 7. A financial institution shall, within 5 working days after the occurrence of a large-sum transaction, timely send to the CALMAC an electronic report of large-sum transaction via its headquarters or via an institution designated by its headquarters. If it has no headquarters, or if it is unable to send the report of large-sum transaction to the CALMAC via its headquarters or via the institution designated by its headquarters, its way of report may be determined by the PBC separately. For a large-sum transaction conducted through a client's account or bank card opened in or issued by a financial institution within China, the account opening financial institution or the card issuing financial institution shall submit a report. For a large-sum transaction conducted through an overseas bank card, the receiving bank shall submit a report. For a large-sum transaction that is not conducted through a client's account or bank card, the financial institution that handles this business shall submit a report. Article 8. A financial institution shall submit any doubtful transaction to its headquarters. The headquarters of this financial institution or its designated institution shall send an electronic report to the CALMAC within 10 working days after the occurrence of the said doubtful transaction. If the financial institution has no headquarters, or if it is unable to send the report of doubtful transactions to the CALMAC via its headquarters or via the institution designated by its headquarters, its way of report may be determined by the PBC separately. Article 9. A financial institution shall report the following large-sum transactions to the CALMAC: (1) A single transaction or the total of RMB transaction (s) or foreign currency transaction(s) on the current day in the form of deposit of cash, withdrawal of cash, settlement or sale of foreign exchange in cash, exchange of notes, cash remittance, payment of cash instrument, which reaches 200, 000 yuan or more, or which reaches the equivalent value of USD 10, 000 or more; (2) A single transfer or the total of transfers on the current day between the bank accounts of legal persons, other organizations and individual and individual commercial households reaches 2 million yuan more, or which reaches the equivalent value of USD 200, 000 or more; (3) A single transfer or total of transfers on the current day between the bank accounts of natural persons, or between the bank account of natural person and the bank account of a legal person, any other organization or individual industrial and commercial household, which reaches 500, 000 yuan or more, or which reaches the equivalent value of USD 100, 000 or more; and (4) A single transnational transaction or the total of transnational transactions on the current day, to which one party is a natural person and which reaches the equivalent value of USD 10, 000 or more. The aggregate amount of transactions shall be based on a single client, of which the receipts and payments of money shall be calculated accumulatively and be reported, unless it is otherwise provided for by the PBC. For the financial transactions between a client and a securities company, futures brokerage company, fund management company, insurance company, insurance asset management company, trust & investment company, financial asset management company, finance company, auto financing company or currency brokerage company, if the money is transferred between the bank accounts, the commercial bank, urban credit cooperative, rural credit cooperative, postal savings institution or policy bank shall, according to Items (1) through (4) of Paragraph 1, submit to the CALMAC a report of large-sum transaction. Where necessary, the PBC may adjust the criterions on large-sum of transactions as described in Paragraph 1. Article 10. For a large-sum transaction which meets any of the following conditions, the financial institution is not required to submit a report if it does not find anything doubtful: (1) After a time deposit is due, it is not directly drawn or transferred, instead the principal or the principal plus all or part of the interests thereof is deposited in a different account opened within a same financial institution with the same account name. The principal or the principal plus all or part of the interests thereof of a demand deposit is changed into a time deposit within a different account opened within a same financial institution with the same account name. The principal or the principal plus all or part of the interests thereof of a time deposit is changed into a demand deposit within a different account opened within a same financial institution with a same account name; (2) The conversion between different foreign currencies during the course of a firm foreign exchange transaction of a natural person; (3) Any large-sum transaction, to which any of the Party organs at various levels, state organs of power, administrative organs, judicial organs and military organs, the Chinese People's Liberation Army or Armed Police Force, or the National Committee of the CPPCC or CPPCC local committees is a party, excluding any enterprise or institution subordinate to any of them; (4) Funding among the financial institutions or bond transaction conducted in the inter-bank bond market; (5) Any gold transaction conducted by a financial institution in a Gold Exchange; (6) Appropriation of fund within a financial institution; (7) Any transaction under the on-lending business of a loan granted by an international financial organization or by a foreign government; (8) Any debt swap transaction under a loan granted by an international financial organization or by a foreign government; (9) The tax collection, correction of wrong accounts or payment of interests initiated by any commercial bank, urban credit cooperative, rural credit cooperative, postal savings institution or policy bank; or (10) Other circumstances as determined by the PBC. Article 11. A commercial bank, urban credit cooperative, rural credit cooperative, postal savings institution, policy bank or trust & investment company shall report any of the following transactions or activities as a doubtful transaction: (1) Separate inward transfer and concentrative outward transfer, or concentrative inward transfer and separate outward transfer of funds within a short term, which is obviously inconsistent with the identity, financial status or business of the client; (2) Frequent receipt and payment of funds between the same recipient and payer within a short term, with the transaction amounts on the verge of the large-sum criterions; (3) Frequent receipt of remittances within a short term that are obviously irrelevant to the business of a legal person, any other organization or individual industrial and commercial household as the recipient, or a natural-person client's frequent receipt of remittances from a legal person or any other organization within a short term; (4) Any account left unused for a long time is unexpectedly used for unclear reasons, or there are abnormal funds flowing into the account, in which the flow of funds is small usually, and there are a large number of fund receipts and payments within a short term; (5) Obvious increase of commercial activities between the clients in areas with serious drug trafficking, smuggling, terrorist activities, gambling or off-shore financial center for tax avoidance, accompanied by frequent fund payments within a short term; (6) Frequent opening and cancellation of accounts, with a large number of fund receipts and payments occurring before the cancellation of accounts; (7) Repayment of any loan ahead of schedule, which is obviously inconsistent with the client's financial status; (8) The better part of the RMB fund for the purchase of foreign currencies for making investments abroad is cashed or transferred from any bank account of a different name; (9) Any client requests for a swap business between the home currency and a foreign currency, but the source and purpose of its fund are doubtful; (10) Any client frequently deposit traveler's checks opened abroad or drafts in a foreign-currency, which are inconsistent with its status quo of business operation; (11) After foreign-funded enterprise makes an investment in the form of foreign currency cash or receives the investment fund, it transferred the fund abroad rapidly, which is inconsistent with the payment for its production and business operation; (12) The amount of capital contribution made by the foreign party of any foreign-funded enterprise exceeds the approved amount or direct foreign debt, and the said capital was remitted from a third country in which it has no connected enterprise; (13) Any securities operation institution instructs a bank to transfer out any fund irrelevant to the transaction or settlement of securities, which is inconsistent with the actual status quo of its business operations; (14) Any securities operation institution's frequent funding of foreign exchange fund through a bank; (15) An insurance institution frequently makes compensations or refunds insurance premiums to a same insurant; (16) Doubtful frequent receipts and payments in cash in the bank account of any natural person, or doubtful deposit or drawing of lump-sum cash; (17) After a resident natural person frequently receives any foreign exchange remittance abroad, he instructs the bank to issue traveler's checks or drafts, or non-resident natural person frequently deposit any foreign currency cash and instructs the bank to issue traveler's checks or drafts so as to carry it abroad or frequently orders or cashes large quantities of traveler's checks or drafts; or (18) Several domestic residents receive the remittances from a same off-shore account and the transfer of funds and settlement of foreign exchange are operated by one person or few persons. Article 12. A securities company, futures brokerage companies or fund management company shall report any of the following transactions or activities as a doubtful transaction: (1) Frequent receipt and payment of funds in a client's fund account for any unclear reason within a short term with the transaction amounts on the verge of the large-sum criterions, which obviously avoid the monitoring of large-sum transactions in cash; (2) Any client, who conducts no transaction or has a small volume of transaction, requests for transferring a large sum of fund into the account of others without any obvious transaction aim or purpose; (3) Any client's securities account is left unused for a long time, but frequent receipts and payments of fund occur in its fund account; (4) Any account left unused for a long time is unexpectedly used for unclear reasons and there occur a large number of securities transactions within a short term; (5) Business connections with any country or region with high risk of money laundering; (6) After an account is opened, there are a large number of purchases and sales of securities and then the account is canceled rapidly; (7) Any client, who conducts no or few futures transactions for a long time, but there occur a large number of receipts and payments of fund in its fund account; (8) Any client, who conducts no futures transaction for a long time, unexpectedly and frequently conducts futures transactions of huge amount for unclear reasons within a short term; (9) Any client frequently draws money by using a same type of futures contracts as subject matters, opening its position at a price and simultaneously opening a reverse position of the identical number or almost the same number at a similar price, then closing the position; (10) When any client, as the seller to a futures transaction, delivers any imported goods, it is unable to provide a complete set of customs declaration documents, tax payment vouchers, or it provides any counterfeit or altered customs declaration document or tax payment voucher; (11) Any client requests for transferring its fund shares to any other person for any non-transaction reason and it fails to provide any lawful certification documents; (12) Any client frequently handles the depository trust of its fund shares without any justifiable reason; or (13) Any client requests for changing its information materials, but it is doubted that the relevant documents and materials, which it provides, are counterfeited or altered. Article 13. An insurance company shall report any of the following transactions or activities as a doubtful transaction: (1) Separate purchase of insurances, concentrative withdrawal of insurances or collective purchase of insurances or separate withdrawal of insurances without any reasonable explanation; (2) Frequent purchase or withdrawal of insurances, or frequent change of insurance type or amount; (3) Paying abnormal attention to any insurance company's provisions on the audit, insurance underwriting, claim settlement, payment and withdrawal of insurance, instead of paying attention to the guarantee functions and investment returns of the insurance products; (4) The loss of a large-sum invoice is declared when an insurance is withdrawn within the hesitation period, or a same insurant withdraws several insurances within a short term and the total amount on the invoices lost reaches a large-sum criterion; (5) It is found that the name, address, contact way or financial status quo of the insurant, the insured or beneficiary is not genuine; (6) Any insurance product does not meet the requirements of the insurant, but the insurant still insists on purchasing it after an explanation is made by the financial institution and its staff members; (7) The purchase of any large-sum insurance policy on a lump-sum payment basis, which is inconsistent with the economic status quo of the insurant; (8) Any large-sum insurance policy is withdrawn within the hesitation period, or any insurance is withdrawn or the cash value is drawn within a short term after the date of effectiveness of the insurance contract, and the premium refund is transferred upon direction into the account of a third party or into a non-premium payment account; (9) Any insurant does not care the relatively large monetary loss to be incurred out of withdrawal of an insurance, instead he firmly insisted on withdrawing the insurance and fails to give a reasonable explanation about the reason for the withdrawal of insurance; (10) Obviously making a payment in excess of the premiums payable in the current period and immediately requesting for refund of the excessive part; (11) Any insurance broker pays any insurance premium on behalf of others but he can not account for the source of fund; (12) Any legal person or any other organization insists on any premium refund in cash or transferring any premium refund into a non-premium payment account and can not make a reasonable explanation; (13) Any legal person or any other organization makes a down payment of insurance premium or makes a lump-sum insurance premium from the account of others or from an overseas bank account; (14) Making a payment for the insurance premium of any natural person through a third party, but failing to make a reasonable explanation about the relationship between the third party and the insurant as well as the relationship between the insured and the beneficiary; (15) Having business connections with any country or region with high risks of money laundering; (16) Without any justifiable reason, the insurant insists on the purchase of insurance, compensation, payment of insurance money, refund of insurance premium or cash surrender value or payment of any other large sum of money in cash; or (17) When an insurance company pays compensation or insurance money, the client requests for remitting the money to a third party instead of the insured or beneficiary; or the client requests for remitting any insurance premium refunded or cash surrender value to any person other than the insurant. Article 14. Apart from the circumstances as prescribed in Articles 11 through 13 of these Measures, if a financial institution or any of its staff members finds that the amount, frequency, direction or nature of any other transaction is abnormal and if it considers that the said transaction is suspected of being involved in money laundering after it makes an analysis, it shall submit to the CALMAC a report of doubtful transaction. Article 15. A financial institution shall analyze and identify all transactions involved in the doubtful transactions reports that it submits to the CALMAC according to these Measures, if it has justifiable reasons to consider that any of the said transactions or any client is related to money laundering, terrorist activity or any other illegal activity or crime, it shall simultaneously report to the local branch institution of the PBC and help the PBC to carry out administrative investigations of anti-money laundering. Article 16. Where a large-sum transaction falls into the category of large-sum transactions but also into the category of doubtful transactions, the financial institution shall submit a report of large-sum transaction and a report of doubtful transaction, respectively. Where a transaction simultaneously meets two or more criterions for large-sum transactions, the financial institution shall submit different reports of large-sum transaction. Article 17. A financial institution shall, according to the basic contents of reports of large-sum transactions and doubtful transactions in the Annex of these Measures (for details of the basic contents, please see the Annex) provide genuine, complete and accurate transaction information and make electronic documents on reports of large-sum transactions and reports of doubtful transactions. The concrete formats of the reports and filling requirements shall be separately formulated by the PBC. Article 18. Where a financial institution violates these Measures, the PBC shall punish it in accordance with Articles 31 and 32 of the Anti-money Laundering Law of the People's Republic of China and shall, according to the actual circumstance, suggest that the CBRC, CSRC or CIRC take the following measures: (1) To order the financial institution to stop business operations for rectification, or to revoke its business permit; (2) To disqualify the directly liable directors, senior managers and other directly liable persons from assuming their respective position, or to prohibit them from working in the financial sector; and (3) To order the financial institutions to give disciplinary sanctions to the directly liable directors, senior managers and other directly liable persons. Where a sub-branch of a county (prefecture) of the PBC finds any financial institution which violates these Measures, it shall report to the branch institution of the PBC at the next higher level, which shall punish the violator or put forward a suggestion according to the preceding Paragraph. Article 19. If the People's Bank of China or any of its branch institutions, such as the central sub-branches at the prefecture level or above, is to give an administrative punishment to a financial institution which violates these Provisions, it shall comply with the Procedural Provisions of the People's Bank of China on Administrative Punishments. Article 20. The following terms as mentioned in these Measures are defined as follows: "Short term" refers to a period of 10 working days or less. "Long term" refers to a period of 1 year or more. "A large number of" means that the amount of a single transaction or the accumulative amount of transactions is less than or on the verge of the criterions for large-sum transactions. "Frequent" means that 3 or more transactions are conducted on a single business day or a transaction is conducted each day but lasts for 3 business days or more. "Or more" includes the stated number. Article 21. These Measures shall become effective from March 1, 2007. The Measures on the Administration of Reporting Large and Doubtful Payment Transactions in Renminbi (Order No. 2 [2003] of the People's Bank of China) and the Measures for the Administration of Financial Institutions' Report of Large-Sum and Doubtful Foreign Exchange Transactions (Order No. 3 [2003] of the People's Bank of China), which were promulgated by the People's Bank of China on January 3, 2003, shall be abolished simultaneously. Annex: Basic Contents of Financial Institutions' Report of Large-sum Transactions and Doubtful Transactions (Omitted) |
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