Three Authorities Propose New Rules to Regulate Financial Institutions' Customer Due Diligence and Customer Identity Data Retention

Three authorities, led by the People's Bank of China (PBC), have recently jointly drafted the Administrative Measures for Customer Due Diligence and the Retention of Customer Identity Data and Transaction Records by Financial Institutions (Draft for Comment) (the "Draft"). The draft is now open for public feedback until September 3.

The main contents of the Draft include: 1. Outlining the general requirements for customer due diligence (CDD); 2. Refining the detailed requirements for CDD; and 3. Refining the scope of application and related provisions to ensure alignment with the Anti-Money Laundering Law of the People's Republic of China (Revised in 2024). Key highlights of the Draft include: 1. Updating THE applicable scenarios and measures for CDD across various financial sectors based on current financial practices; 2. Specifying ongoing due diligence requirements during the duration of business relationships between financial institutions and customers based on existing legal provisions; 3. Drawing on international anti-money laundering standards to specify due diligence requirements relating to beneficial owners, high-risk countries/regions, countries/regions requiring enhanced monitoring, foreign politically exposed persons (PEPs), senior management of international organizations, agency banking and similar business operations, remittance services, etc.



(Source: http://www.pbc.gov.cn/tiaofasi/144941/144979/3941920/5799318/index.html)

Note: The link to the Chinese official website of the document is for your reference.