People's Bank of China Order [2003] No. 1

In accordance with the "Law of the People's Republic of China on the People's Bank of China" and other laws and regulations, the People's Bank of China has formulated the " "Anti-Money Laundering Regulations for Financial Institutions", adopted at the 7th executive meeting on September 17, 2002, are hereby promulgated and will come into effect on March 1, 2003.

President: Zhou Xiaochuan

January 3, 2003

Anti-money laundering regulations for financial institutions

Article 1 In order to prevent criminals from using financial institutions to engage in money laundering activities and maintain financial security, these regulations are formulated in accordance with the "Law of the People's Republic of China on the People's Bank of China" and other laws and administrative regulations.

Article 2 When financial institutions carry out anti-money laundering work, these regulations shall apply.

The term "financial institutions" as mentioned in these regulations refers to institutions established and operating financial services in accordance with the law within the territory of the People's Republic of China, including policy banks, commercial banks, credit cooperatives, postal savings and remittance institutions, Finance companies, trust investment companies, financial leasing companies and foreign financial institutions, etc.

Article 3 The term “money laundering” as mentioned in these regulations refers to the illegal proceeds from drug crimes, organized crimes of a mafia nature, terrorist crimes, smuggling crimes or other crimes and the proceeds generated therefrom through various means. The act of disguising and concealing its origin and nature to make it formally legal.

Article 4 Financial institutions and their staff shall conscientiously perform anti-money laundering obligations in accordance with these regulations, prudently identify suspicious transactions, and shall not engage in unfair competition to hinder the performance of anti-money laundering obligations.

Article 5 Financial institutions and their staff shall keep the secrets of anti-money laundering work and shall not leak relevant anti-money laundering work information to customers and other personnel in violation of regulations.

Article 6 Financial institutions shall assist and cooperate with judicial agencies and administrative law enforcement agencies in combating money laundering activities in accordance with the law, and assist judicial agencies, customs, taxation and other departments in the inquiry, freezing and deduction of money in accordance with laws, administrative regulations and other relevant provisions. Customer Deposits.

Overseas branches of Chinese-funded financial institutions shall comply with the anti-money laundering legal provisions of the country or region in which they are located, and assist and cooperate with the anti-money laundering departments in the country or region in accordance with the law.

Article 7 The People's Bank of China is the supervisory and administrative authority for the anti-money laundering work of financial institutions.

The People's Bank of China has established a leading group for anti-money laundering work in financial institutions to perform the following responsibilities:

(1) Unify supervision and coordination of anti-money laundering work in financial institutions;

(2) Research and formulate anti-money laundering strategies, plans and policies for financial institutions, formulate anti-money laundering work systems, and formulate large and suspicious RMB fund transaction reporting systems;

(3) Establish a payment transaction monitoring system, Monitor payment transactions;

(4) Study major and difficult problems in the anti-money laundering work of financial institutions and propose solutions and countermeasures;

(5) Participate in international cooperation on anti-money laundering and provide guidance Foreign cooperation and exchange on anti-money laundering work of financial institutions;

(6) Other anti-money laundering regulatory responsibilities that should be performed by the People's Bank of China.

The State Administration of Foreign Exchange is responsible for the supervision and management of reporting of large and suspicious foreign exchange fund transactions. The State Administration of Foreign Exchange has formulated a reporting system for large-amount and suspicious foreign exchange fund transactions.

Article 8 Financial institutions shall establish and improve anti-money laundering internal control systems in accordance with the regulations of the People's Bank of China, and submit them to the People's Bank of China for filing.

Article 9: Financial institutions shall establish a special anti-money laundering work organization or designate its internal organization to be responsible for anti-money laundering work, and be equipped with necessary management personnel and technical personnel.

Financial institutions shall, based on actual needs, set up special agencies or designate dedicated personnel in their branches to be responsible for anti-money laundering work, and implement these regulations and anti-money laundering internal control systems for subordinate branches in accordance with the principle of hierarchical management. Carry out supervision and inspection.

Effective anti-money laundering measures should be formulated when a new financial institution or a financial institution adds a branch.

Article 10 Financial institutions should establish a customer identity registration system to review the identities of customers who handle deposits, settlement and other businesses at the institution.

Financial institutions are not allowed to open anonymous accounts or pseudonymous accounts for customers, and are not allowed to provide deposit, settlement and other services to customers whose identities are unclear.

Article 11 When a financial institution opens a deposit account or handles settlement for individual customers, it shall require them to produce their identity documents, conduct verification, and register the names and numbers on their identity documents. If someone opens a personal deposit account at a financial institution on behalf of others, the financial institution shall require the person to present the identity documents of the principal and the agent, conduct verification, and register the names and numbers on the identity documents of the principal and the agent.

For those who do not present their identity documents or do not use the name on their identity documents, financial institutions are not allowed to open deposit accounts for them.

Article 12 When a financial institution handles account opening, deposits, settlement and other services for institutional customers, it shall require them to provide valid certification documents and information, verify and register them in accordance with the relevant regulations of the People's Bank of China.

For those who fail to provide valid certification documents and information for the unit in accordance with regulations, financial institutions shall not handle deposits, settlement and other services for them.

Article 13 If a financial institution discovers a large transaction when providing financial services to customers, it shall report it to the People's Bank of China or the State Administration of Foreign Exchange in accordance with relevant regulations.

The quota standards for large amounts of funds shall be implemented in accordance with the regulations on capital transaction reporting of the People's Bank of China and the State Administration of Foreign Exchange.

Article 14 If a financial institution discovers suspicious transactions when providing financial services to customers, it shall report them to the People's Bank of China or the State Administration of Foreign Exchange.

The reporting standards for suspicious transactions shall be implemented in accordance with the regulations on capital transaction reporting of the People's Bank of China and the State Administration of Foreign Exchange.

Article 15 Branches of financial institutions shall report large-amount and suspicious fund transactions to the People’s Bank of China or the State Administration of Foreign Exchange in accordance with the relevant fund transaction reporting procedures of the People’s Bank of China and the State Administration of Foreign Exchange. The local branch of the Administration of Foreign Exchange shall also report to its superior unit.

Article 16 Financial institutions should review and analyze large-amount and suspicious fund transactions, and report to the local public security department in a timely manner if they find suspected crimes.

Article 17 Financial institutions shall keep customers’ account information and transaction records in accordance with the following prescribed periods:

(1) Account information, for at least 5 years from the date of account cancellation;

(2) Transaction records, at least 5 years from the date of transaction accounting.

The transaction records referred to in the preceding paragraph include the account holder, the amount deposited or withdrawn through the account, the transaction time, the source and destination of the funds, the method of withdrawing funds, etc.

Account information and transaction records are kept in accordance with national regulations on accounting file management.

Article 18 The People's Bank of China or the State Administration of Foreign Exchange shall, after analyzing and studying the large-value and suspicious transaction reports of financial institutions, consider those suspected of committing crimes in accordance with the "Provisions on the Transfer of Suspected Criminal Cases by Administrative Law Enforcement Agencies" "Reports and other materials will be transferred to judicial authorities according to the procedures stipulated in ", and the contents of the reports shall not be disclosed to financial institution customers and other personnel.

Article 19 The People's Bank of China is responsible for guiding and organizing anti-money laundering training for financial institutions.

Financial institutions should carry out anti-money laundering publicity work for their customers, and conduct anti-money laundering training for their staff, so that they can master the laws, administrative regulations and rules related to anti-money laundering, and strengthen anti-money laundering work. ability.

Article 20 If a financial institution violates these regulations and commits any of the following acts, the People's Bank of China will order it to make corrections within a time limit and give a warning; if it fails to make corrections within the time limit, it may be fined not more than 30,000 yuan; if the circumstances are serious If any, the qualifications of the senior managers who are directly responsible for them may be revoked:

(-) Failure to establish an anti-money laundering internal control system in accordance with regulations;

(2) Failure to establish a dedicated anti-money laundering internal control system in accordance with regulations Institutions or designated specialized agencies are responsible for anti-money laundering work;

(3) Failure to require corporate customers to provide valid supporting documents and information for verification and registration in accordance with regulations;

(4) Failure to preserve customer account information and transaction records in accordance with regulations;

(5) Violating regulations by leaking anti-money laundering information to customers and other personnel;

(6) Failure to comply with regulations Provisions are made for reporting large-value transactions or suspicious transactions.

Article 21 If a financial institution engaged in foreign exchange business fails to promptly report abnormal situations such as large-amount foreign exchange purchases, frequent foreign exchange purchases, deposits and withdrawals of large amounts of foreign currency cash, etc., it shall be punished in accordance with the "Financial Illegal Acts" Penalties stipulated in Article 25 of the Measures.

Article 22 If a financial institution violates relevant laws and administrative regulations, engages in unfair competition, and impairs the performance of anti-money laundering obligations in the course of conducting business, it shall be punished in accordance with the relevant provisions of the "Measures for Punishment of Financial Illegal Acts" Provide penalties and impose disciplinary sanctions on the personnel directly responsible for the financial institution. If the circumstances are serious, the qualifications of the senior managers directly responsible for the financial institution shall be revoked.

Article 23 If a financial institution opens an account for an individual customer who does not present his or her identity document or does not use the name on his or her identity document, the People's Bank of China will give the financial institution a warning and may impose a fine of 1,000 yuan. A fine of more than 5,000 yuan and less than 5,000 yuan is imposed. If the circumstances are serious, the senior managers directly responsible for the financial institution shall be disqualified.

Article 24 The China Banking Association, China Finance Companies Association and other financial industry self-regulatory organizations may formulate industry anti-money laundering work guidelines in accordance with these regulations.

Article 25 These regulations will come into effect on March 1, 2003.