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PBOC Tightens High-value Transaction Reporting Requirements

Financial institutions on the Chinese mainland are currently required to report cash deposits or withdrawals valued over RMB200,000 by citizens to the China Anti-Money Laundering Monitoring and Analysis Center. This reporting threshold will be lowered to RMB50,000 as of 1 July 2017.

The People’s Bank of China has earlier announced a revised set of administrative measures requiring financial institutions to report high-value and suspicious transactions to the Center. The revised measures, which will come into force on 1 July 2017, have adjusted the reporting threshold for high-value cash transactions from RMB200,000 to RMB50,000. For high-value cross-border transactions settled in renminbi, the central bank has set the trigger level at RMB200,000. 

Under the measures, reports should be filed for the following three types of high-value transactions:

  1. High-value cash transactions between natural persons and non-natural persons. The reporting threshold for both domestic and cross-border transactions is set at RMB50,000 or above, or an amount equivalent to US$10,000 or above in foreign currencies.
  2. High-value transfers between the bank accounts of non-natural persons. The reporting threshold for both domestic and cross-border transactions is set at RMB2 million or above, or an amount equivalent to US$200,000 or above in foreign currencies.
  3. High-value transfers between the bank accounts of natural persons. The reporting threshold for domestic transactions is set at RMB500,000 or above, or an amount equivalent to US$100,000 or above in foreign currencies. The threshold for cross-border transactions is set at RMB200,000 or above, or an amount equivalent to US$10,000 or above in foreign currencies.

According to the measures, for any single transaction or multiple transactions conducted in a single day with a total value of RMB50,000 or above or equivalent to US$10,000 or above in foreign currencies, including cash deposit, cash withdrawal, cash payment, settlement and purchase of foreign currencies in cash, cash exchange, cash remittance, cash order payment and other forms of cash transactions, financial institutions should file high-value transaction reports with the Center. For example, a natural person purchases US dollars with renminbi in cash through a single deal or multiple deals in a single day with a total value of RMB50,000 or above. The bank handling such high-value transactions must file a report with the Center.

The measures also require that, should a financial institution notice or suspect on reasonable grounds that a client, the funds or other assets of a client, or the transactions a client has conducted or attempts to conduct is or are associated with criminal activities such as money laundering and terrorist financing, it should submit suspicious transaction reports to the Center immediately regardless of the amount of the capital or the size of the assets involved.

For details of the measures (The People’s Bank of China Decree No.3 [2016]) in Chinese, please see:

http://www.gov.cn/xinwen/2016-12/30/content_5155050.htm

Content provided by Picture: HKTDC Research
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