金融机构大额交易和可疑交易报告管理办法-en

Order of the People's Bank of China

No. 2

The Measures for the Administration on Financial Institutions' Reports of Large-sum Transactions and Doubtful Transactions, which was instituted by the People's Bank of China according to the provisions of 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 was adopted at the 25th executive meeting the president of the People's Bank of China on November 6, 2006, is hereby promulgated and shall come into force as of March 1, 2007.

President of the People's Bank of China, Zhou Xiaochuan

November 14, 2006 Measures for the Administration on Financial Institutions' Reports of Large-sum Transactions and

Doubtful Transactions

Article 1For the purpose of preventing money-laundering through financial institutions and regulating the reporting acts of financial institutions of large-sum transactions and doubtful transactions, the present Measures are instituted according to 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 2These Measures shall be applicable to the following financial institutions set up within the territory of the People's Republic of China under law,

(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 leasing companies, auto financing companies, currency brokerage companies; and

(5)other financial institutions determined and announced by the People's Bank of China.

The institutions undertaking foreign exchange, payment and settlement businesses and sale of funds shall be subject to the present Provisions in respect of the anti-money laundering supervision and administration through financial institutions.

Article 3The People's Bank of China and its branch institutions shall supervise and inspect the financial institutions' report of large-sum transactions and doubtful transactions.

Article 4The People's Bank of China shall set up China Anti-money Laundering Monitoring and Analyzing Center (hereinafter referred to as CALMAC), which shall be responsible for receiving reports of large-sum transactions and doubtful transactions in RMB and in foreign currencies.

Where the CALMAC finds that the basic content of a financial institution's report of large-sum transaction or doubtful transaction is not complete or there is any error in the report, it may issue to the reporting financial institution a notice on supplement or correction. The financial institution shall make supplement or correction within 5 working days as of the receipt of the notice on supplement or correction.

Article 5Financial institutions shall establish special anti-money laundering posts and designate special staff members to be responsible for reporting large-sum transactions and doubtful transactions.

Financial institution shall, according to the present Measures, work out internal management rules and

operating procedures for the report of large-sum transactions and doubtful transactions, and submit them to the People's Bank of China for archival purposes.

Financial institutions shall supervise and administer the implementation of the reporting system on large-sum transactions and doubtful transactions of its underling branches.

Article 6Financial institutions and their staff members shall keep confidential the information on the report of doubtful transactions, and may not violate the relevant provisions to provide such information to any entity or individual.

Article 7Financial institutions shall, within 5 working days as of the occurrence of a large-sum transaction, timely send to the CALMAC an electronic report on the large-sum transaction via their headquarters or via an institution designated by their headquarters. If they has no headquarters, or if it is unable to send the report of large-sum transaction to the CALMAC via their headquarters or via the institution designated by their headquarters, its way of reporting may be determined by the People's Bank of China separately.

As 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 or card issuing financial institution shall submit a report. As for a large-sum transaction conducted through an overseas bank card, the receiving bank shall submit a report. As for a large-sum transaction that is not conducted through a client's account or bank card, the financial institution that which has handled the business shall submit a report.

Article 8Financial institutions shall submit any doubtful transaction to their headquarters, which or whose designated institutions shall send an electronic report to the CALMAC within 10 working days as of the occurrence of the foresaid doubtful transaction. If a financial institution has no headquarters, or is unable to send the report of the doubtful transaction to the CALMAC via its headquarters or via the institution designated by its headquarters, the way of report may be determined by the People's Bank of China separately.

Article 9Financial institutions shall report the following large-sum transactions to the CALMAC,

(1)Cash deposit, cash drawing, foreign exchange settlement or sale in cash, banknote exchange, cash remittance, payment of cash bills and other cash incomes and expenses in other forms with a single transaction or the total of RMB transaction (s) or foreign currency transaction(s) on the current day up to RMB 200, 000 Yuan or more, or the equivalent value of USD 10, 000 or more;

(2)Funds transfer between the bank account of a legal person, any other organization and individual commercial household with a single transfer or an accumulative total on the current day up to RMB 2 million Yuan or more, or the equivalent value of USD 200, 000 or more

(3)Funds transfer 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 commercial household with a single transfer or a accumulative total on the current day up to RMB 500, 000 Yuan or more, or the equivalent value of USD 100, 000 or more;

(4)Transnational transaction with a single transaction or an accumulative total on the current day up to the equivalent value of USD 10, 000 or more, to which one of the parties concerned is a natural person.

The accumulative amount of transactions shall be calculated for each client, of which the receipts and payments of money shall be calculated accumulatively unilaterally and be reported, unless it is otherwise provided for by the People's Bank of China.

As for 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 banks, urban credit cooperatives, rural credit cooperatives, postal savings institutions or policy banks shall, in light of Items (1) through (4) of Paragraph 1, submit to the CALMAC reports of large-sum transaction.

If necessary, the People's Bank of China may adjust the criterion on large-sum transaction as prescribed in Paragraph 1.

Article 10As for a large-sum transaction under any of the following circumstances, the financial institution may not make a report if it does not find anything doubtful:

(1)After a time deposit is due, it is not directly drawn or transferred, but the principal or the principal plus all or part of the interests thereof is deposited in a different account set up with the same account name in the same financial institution.

The principal or the principal plus all or part of the interests thereof of a demand deposit is changed into a time deposit in a different account opened with the same account name in the same financial institution.

The principal or the principal plus all or part of the interests thereof of a time deposit is changed into a demand deposit in a different account opened with the same account name in the same financial institution. (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, organs of state power, administrative organs, judicial organs and military organs, organs of Chinese People's Political Consultative Conference, the National Committee of the CPPCC or CPPCC local committees, excluding any enterprise or institution subordinate to any of them, is one party of the transaction.

(4)Loans among the financial institutions or bond transactions conducted in the inter-bank bond market;

(5)Gold transactions conducted by a financial institution in a Gold Exchange;

(6)Funds appropriation within a financial institution;

(7)Transactions under the on-lending business of a loan granted by an international financial organization or by a foreign government;

(8)Debt swap transactions under a loan granted by an international financial organization or by a foreign government;

(9)Tax collection, correction of wrong accounts or payment of interests initiated by commercial banks, urban credit cooperatives, rural credit cooperatives, postal savings institutions or policy banks; and

(10)Other circumstances as determined by the People's Bank of China.

Article 11Commercial banks, urban credit cooperatives, rural credit cooperatives, postal savings institutions, policy banks or trust & investment companies shall report any of the following transactions or activities as a doubtful transaction,

(1)The dispersive inward transfer and concentrative outward transfer, or the concentrative inward transfer and dispersive outward transfer of funds within a short term, which is obviously inconsistent with the identity, finance status or business of the client;

(2)Frequent receipts and payments of funds between the same recipient and payer within a short term, with the transaction amounts adjacent to the large-sum criterions;

(3)Frequent receipts of remittances within a short term that are obviously irrelevant to the business of a legal person, organization or individual industrial and commercial household, or a natural-person client's frequent receipt of remittances from a legal person or an organization within a short term.

(4)Any account unused for a long time is unexpectedly used for unclear reasons, or any account, in which the flow of funds is small usually, suddenly has abnormal funds flowing into, and there are a large number of fund receipts and payments within a short term.

(5)Obvious increase of capital transfers with the clients in areas with serious drug trafficking, smuggling, terrorist activities, gambling or in off-shore financial centers for tax avoidance, accompanied by frequent fund payments within a short term.

(6)Frequent opening and cancellation of accounts without any normal reason, 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 finance status.

(8)The large amount of RMB funds of a client for the purchase of foreign currencies for making investment abroad is cashed or transferred from any bank account with a different name;

(9)A client requests for a swap business between the home currency and a foreign currency, but the source and purpose of its funds are doubtful.

(10)A client frequently deposits traveler's checks opened abroad or drafts in a foreign-currency, which is inconsistent with its business operation status.

(11)After a foreign-funded enterprise makes investment in the form of foreign currency cash or receives the investment fund, it transfers the fund abroad rapidly, which is inconsistent with the payment requirements for its production and business operation.

(12)The amount of capital contribution made by the foreign party of any foreign-funded enterprise, which exceeds the approved amount or direct foreign debt, is remitted from a third country in which it has no connected enterprise.

(13)A securities operation institution dictates a bank to transfer out any fund irrelevant to the transaction or settlement of securities, which is inconsistent with its actual business operation status.

(14)A securities operation institution frequently borrows abundant foreign exchange funds through a bank.

(15)An insurance institution frequently makes compensations or refunds insurance premiums to a same insurant through a bank.

(16)A natural person frequently conducts cash receipts and payments in a bank account, which is doubtful, or deposits or draws lump-sum cash in one time, which is doubtful.

(17)After a resident natural person frequently receives any foreign exchange remittance from abroad, he requires the bank to issue traveler's checks or drafts; or non-resident natural person frequently deposits any foreign currency cash and requires 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.

(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 12Securities companies, futures brokerage companies or fund management companies shall report any of the following transactions or activities as a doubtful transaction:

(1)Cash receipts and payments with the transaction amounts adjacent to large-sum criterions without any clear reason frequently occurring in a client's funds account within a short term, which obviously avoid the monitoring of large-sum transactions in cash.

(2)Any client, who has no transaction or has a small volume of transaction, requests for transferring a large sum of funds into the account of others without any obvious transaction aim or purpose.

(3)The securities account of a client is left unused for a long time, but there occur frequent receipts and

payments of funds in capital account of the client.

(4)An 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)Having 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)A client conducts no or few futures transactions for a long time, but there occur a large number of receipts and payments of funds in its (his) fund account.

(8)A client conducts no futures transaction for a long time, but unexpectedly and frequently carries through futures transactions of huge amount for unclear reasons within a short term.

(9)A 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 of a futures transaction, delivers any imported goods, it fails 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)A client requests for transferring its fund shares to any other person for any reason rather than transaction but can not provide any lawful certification document.

(12)A client frequently transacts the depository trust of its fund shares without any justifiable reason.

(13)A client requests for changing its information materials, but the relevant documents and materials it provided are doubtful to be counterfeited or altered.

Article 13Insurance companies shall report any of the following transactions or activities as a doubtful transaction,

(1)Dispersive purchase of insurances and concentrative withdrawal of insurances or concentrative purchase of insurances and dispersive withdrawal of insurances without any reasonable explanation.

(2)Frequent purchase or withdrawal of insurances, or frequent alteration of insurance type or amount.

(3)Paying abnormal attention to the provisions on the audit, insurance underwriting, claim settlement, payment and withdrawal of insurance of insurance companies instead of to the guarantee functions and investment returns of the insurance products.

(4)The loss of a large-sum invoice is declared when 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 names, addresses, contact ways or financial status of the insurant, the insured or beneficiary are not genuine.

(6)Any insurance product does not conform to the requirements as expressed, but the policy-holder 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 on a lump-sum payment basis is inconsistent with the economic status of the insurant.

(8)Any large-sum guarantee slip 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 the 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)A insurant does not care the relatively large monetary loss that may be brought about by withdrawing the insurance instead of withdrawing the insurance, and fails to make reasonable explanations for the withdrawal of insurance.

(10)Making a payment obviously in excess of the premiums payable in the current period and immediately requesting for refund of the excessive part.

(11)An insurance broker pays any insurance premium on behalf of others but can not account for the source of fund.

(12)A 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 fails to make any reasonable explanation.

(13)A 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 payments for the insurance premium of any natural person through a third party, but failing to make any reasonable explanation on 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 risk of money laundering.

(16)Without any justifiable reason, the insurant persists in 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.

(17)When an insurance company pays compensation or insurance money, the client requests for remitting the money to a third party other than the insured or the beneficiary; or the client requests for remitting any insurance premium refunded or cash surrender value to any person other than the insurant.

Article 14Besides the circumstances as prescribed in Articles 11 to 13 of the present 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 considers that the transaction is suspected of being involved in money laundering upon analysis, it shall submit to the CALMAC a report of doubtful transaction.

Article 15Financial institutions shall analyze and identify all transactions involved in doubtful transaction reports that are submitted to the CALMAC according to the present Measures. If it has rational reasons to consider that any of the aforesaid 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 People's Bank of China and assist the People's Bank of China in the administrative investigation work of anti-money laundering.

Article 16As for a transaction falling into both the category of large-sum transactions and the category of doubtful transactions, the financial institution shall respectively submit a report of large-sum transaction and a report of doubtful transaction.

Where a transaction simultaneously satisfies two or more criterions for large-sum transactions, the financial institution shall submit different reports of large-sum transaction.

Article 17Financial institutions shall, in light of the basic requirements for the essentials of reports of large-sum transactions and doubtful transactions which is attached to the present Measures (for details of the basic contents, please see the Appendix) 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 instituted by the People's Bank of China. Article 18Where a financial institution violates the present Measures, the People's Bank of China shall

punish it according to Articles 31 and 32 of the Anti-money Laundering Law of the People's Republic of China, and shall, in light of the actual circumstance, suggest that the CBRC, CSRC or CIRC take the following measures:

(1)charging the financial institution to stop business operation for rectification, or to revoke its business license;

(2)disqualifying the directly liable directors, senior managers and other directly liable persons from assuming their respective positions, or prohibiting them from working in the financial sector.

(3)charging 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 People's Bank of China finds any financial institution which violates the present Measures, it shall report it to the branch institution of the People's Bank of China at the next higher level, which shall punish the violator or advance suggestions according to the preceding Paragraph.

Article 19Where the People's Bank of China or any of its branch institutions or sub-branches at the prefecture level or above, is to give an administrative punishment to a financial institution which violates the present Provisions, it shall accord with the Procedural Provisions of the People's Bank of China on Administrative Punishments.

Article 20The following terms as mentioned in the present Measures shall refer to:

The term"short term" refers to a period of 10 working days or less.

The term "Long term" refers to a period of 1 year or more.

The term "a large number of" means that the amount of a single transaction or the accumulative amount of transactions is less than but adjacent to the criterions for large-sum transactions.

The term "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.

Article 21The present Measures shall come into force as of March 1, 2007. The Measures for the Administration on Reporting Large and Doubtful Payment Transactions in Renminbi (Order [2003] No. 2 of the People's Bank of China) and the Measures for the Administration on Reports of Financial Institutions concerning Large-Sum and Doubtful Foreign Exchange Transactions (Order [2003] No. 3 of the People's Bank of China), which were promulgated by the People's Bank of China on January 3, 2003, shall be nullified simultaneously.

Appendix: Basic Contents of Financial Institutions' Reports of Large-sum Transactions and Doubtful Transactions (Omitted)