Shall I register cash withdrawal of over 50,000 yuan?That’s why!

2022-05-01 0 By

Starting in March, individuals will be required to register the source and use of their funds if they deposit or withdraw more than 50,000 yuan.Many people wonder: why should cash withdrawal be registered?Will this make it inconvenient to withdraw and withdraw cash?In fact, the requirement comes from a new regulation jointly issued by the People’s Bank of China (PBOC), the Banking and Insurance Regulatory Commission (CBRC) and the China Securities Regulatory Commission (CSRC) in January, which will take effect on March 1.Way clearly put forward: commercial Banks, rural cooperative Banks, rural credit cooperatives, village Banks and other financial institutions deal with single 50000 yuan of above for natural person customer or foreign currency more than 10000 dollars in cash equivalent access to business, shall identify and verify customer’s identity, to understand and the source of the registered capital or purpose.Why was it introduced?Relevant departments of the People’s Bank of China (PBOC) said the regulation is aimed at preventing and curbing money laundering and other illegal and criminal activities, and protecting people’s funds and interests.In recent years, telecom fraud, illegal fund-raising, pyramid schemes, cross-border gambling, underground banking and other illegal and criminal activities have been rampant, seriously endangering the interests of the people.People’s Bank of China, through the sorting of telecom fraud cases found that cash anonymous, difficult to track the characteristics of criminals often prefer to use cash for trading activities.Financial institutions appropriately strengthen the management of cash deposits and withdrawals in accordance with the law, which is conducive to preventing illegal and criminal activities and protecting the fundamental interests of the overwhelming majority of the people.From practical experience, in recent years, China’s financial institutions have continuously strengthened the risk management of money laundering, discovered many suspected illegal and criminal activities, and protected the safety of people’s funds.In September 2021, an elderly couple withdrew 95,000 yuan from a bank in Zhengzhou, Henan Province. When the bank staff asked the purpose of the withdrawal, the elderly man was told to buy health care products.For fear of being cheated, the bank staff repeatedly advised the elderly to beware of being cheated.Because the old man did not take id card can not take large cash, the bank staff in the old man home to get id card in the process, kept persuasion, comfort the old woman, and contact the police.Finally, after the police and the staff of the dissuasion, for the old man to recover 95,000 yuan of economic losses.Will ease of access to cash be affected?The People’s Bank of China made it clear that the implementation of the regulation by financial institutions will not affect residents’ normal cash deposits and withdrawals, nor will its convenience be affected.”Voluntary deposit” and “freedom of withdrawal” have long been written into the law of commercial banks, and residents’ legal income of deposit and withdrawal business has been strictly protected by law in China.In recent years, in order to prevent telecom fraud, money laundering and other illegal and criminal activities, many financial institutions from the concept of “customer as the center”, when dealing with large cash withdrawal business on the source and use of funds for the necessary understanding and tips, formed some experience.A few years ago, there was a case where an old man accompanied by a man in his 30s withdrew 100,000 yuan from a bank in Wuhan, Hubei Province.In the process of withdrawal, the old man was evasive about the purpose of the money, and the man only looked at the old man from a distance, which was quite unusual.Bank staff advised the old man to contact his family to confirm the withdrawal and to call the police, while the man left the bank in a hurry before police arrived.Police learned that the man was a wechat friend of the elderly through the Internet, and introduced the elderly to so-called “high interest” financial business.Relevant personage introduces the People’s Bank of China, under normal circumstances, financial institutions do not require customers to fill out information or provide proof materials, financial institutions directly to the customer after the simple ask understand cash access business and registration related situation, only found a reasonable reason to suspect that trading transaction apparently unusual, suspected of money laundering and other illegal and criminal activities, to further understand the situation to the customer.In addition, industry insiders said, “Financial institutions customer due diligence and customer identity data and transaction records preservation management measures” to improve the anti-money laundering regulatory system, conducive to the anti-money laundering international standards.It is understood that financial Action Task Force international standards against money laundering clearly require financial institutions to conduct due diligence on cash transactions over a certain amount.As its member, Our country should also implement the requirements of international standards of anti-money laundering.Moreover, major countries around the world have similar requirements for cash transactions above a certain amount.Data from the People’s Bank of China shows that cash deposits and withdrawals of more than 50,000 yuan account for only about 2% of all cash deposits and withdrawals in China.In the people’s bank of the relevant personage, the new requirements for customers to deal with cash business less impact.How to ensure that customer information such as source and use of funds is protected?”Depositor confidentiality” has been explicitly written into the commercial banking Law, so financial institutions must strictly keep confidential the personal information and customer privacy acquired in the process of business handling.Banks and their staff who leak personal information and customers’ privacy should bear legal responsibility, and even criminal responsibility if the circumstances are serious.The People’s Bank of China said it will continue to pay close attention to and guide financial institutions to strictly implement relevant regulations, strike a balance between preventing risks and optimizing services, and strictly protect citizens’ personal information and privacy.In the next step, the People’s Bank of China will guide financial institutions to formulate implementation rules. While earnestly fulfilling anti-money laundering obligations, they should strictly implement the principle of least and necessary to understand the information of registered customers and not increase the burden of customers.Especially for the elderly and other groups who use more cash, financial institutions should take the initiative to provide more friendly and convenient services.Source: Xinhua News Agency News Center, Issue 216, 2022 (Total issue 6026)