China delays new anti-money laundering rules amid privacy worries, pushback from small financial firms
- Chinese authorities have postponed introduction of new rules requiring financial institutions tighten due diligence on clients and transactions
- Delay comes after small and medium-sized financial institutions asked for more time to revise and improve their internal management systems
China’s central bank has said it is postponing implementation of new rules that strengthen scrutiny of cash withdrawals and deposits due to “technical reasons”.
The new regulation, which was said to target money laundering and originally expected to take effect on March 1, requires people who make a single cash deposit or withdrawal that exceeds 50,000 yuan (US$7,8884), or US$10,000 in a foreign currency, to report the source and intended use of the money.
But the PBOC issued a notice on Monday saying the new rules would be delayed and transactions would continue under current protocols, which only require banks to check a person’s identification.
01:25
Macau police arrest Suncity casino junket boss in crackdown on online gambling
“After the promulgation of the regulation, some small and medium-sized financial institutions raised that it puts forward specific standards and requirements on a variety of financial products and business models, and financial institutions need to revise and improve their internal management systems, information systems, business processes, and conduct personnel training,” the statement said.
Earlier this month, the PBOC said the new regulation would not affect the normal cash deposit and withdrawal needs of individuals, and the main purpose was to curb illegal activities such as money laundering in compliance with international standards.
