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What does anti-money laundering mean?
Anti-money laundering refers to the act of taking relevant measures in accordance with the Anti-Money Laundering Law of People's Republic of China (PRC) to prevent the source and nature of crimes such as drug crimes, organized crimes of underworld nature, terrorist crimes, smuggling crimes, corruption and bribery crimes, crimes of disrupting financial management order and financial fraud crimes.

provisions on anti money laundering of financial institutions

Article 1 These Provisions 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 in order to prevent criminals from using financial institutions to engage in money laundering activities and maintain financial security.

Article 2 These Provisions shall apply to the anti-money laundering work of financial institutions.

The term "financial institutions" as mentioned in these Provisions refers to institutions established in People's Republic of China (PRC) according to law and engaged in financial business, including policy banks, commercial banks, credit cooperatives, postal savings and remittance institutions, finance companies, trust and investment companies, financial leasing companies and foreign-funded financial institutions.

Article 3 Money laundering as mentioned in these Provisions refers to the act of concealing and concealing the source and nature of illegal gains from drug crimes, organized crimes of underworld nature, terrorist crimes, smuggling crimes or other crimes, and legalizing them in form by various means.

Article 4 Financial institutions and their staff shall conscientiously fulfill their anti-money laundering obligations in accordance with these Provisions, carefully identify suspicious transactions, and shall not engage in unfair competition that hinders them from fulfilling their anti-money laundering obligations.

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

Article 6 Financial institutions shall assist and cooperate with judicial organs and administrative law enforcement organs in cracking down on money laundering activities according to law, and assist judicial organs, customs, taxation and other departments in inquiring, freezing and deducting customer deposits according to laws, administrative regulations and other relevant provisions.

Overseas branches of Chinese-funded financial institutions shall abide by the anti-money laundering laws and regulations of the host country or region, and assist and cooperate with the anti-money laundering department of the host country or region according to law.

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

The People's Bank of China shall set up a leading group for anti-money laundering of financial institutions to perform the following duties:

(1) Unified supervision and coordination of the anti-money laundering work of financial institutions;

(2) To study and formulate the anti-money laundering strategies, plans and policies of financial institutions, formulate the anti-money laundering work system, and formulate the reporting system for large and suspicious RMB fund transactions;

(3) Establishing a payment transaction monitoring system to monitor payment transactions;

(four) to study the major and difficult problems in the anti-money laundering work of financial institutions and put forward solutions and countermeasures;

(5) Participating in international cooperation in anti-money laundering and guiding foreign cooperation and exchanges in anti-money laundering work of financial institutions;

(6) Other anti-money laundering supervisory duties 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 large and suspicious foreign exchange fund transaction reports. The State Administration of Foreign Exchange shall establish a reporting system for large and suspicious foreign exchange fund transactions.

Article 8 Financial institutions shall, in accordance with the provisions of the People's Bank of China, establish and improve the internal control system against money laundering and report it to the People's Bank of China for the record.

Article 9 A financial institution shall set up a special anti-money laundering institution or designate its internal institution to be responsible for anti-money laundering work, and be equipped with necessary management and technical personnel.

Financial institutions shall, according to actual needs, set up special institutions or designate special persons to be responsible for anti-money laundering in their branches, and supervise and inspect the implementation of these Provisions and the internal control system of anti-money laundering in their subordinate branches in accordance with the principle of hierarchical management.

Newly established financial institutions or newly established branches of financial institutions shall formulate effective anti-money laundering measures.

Article 10 A financial institution shall establish a customer identity registration system to examine the identity of customers who handle deposits, settlement and other businesses in the institution.

Financial institutions are not allowed to open anonymous accounts or alias accounts for customers, and are not allowed to provide services such as deposit and settlement for unidentified customers.

Article 11 When opening deposit accounts and settlement accounts for individual customers, financial institutions shall require individual customers to show their identity documents, check their identity documents, and register their names and numbers on the identity documents. When an agent opens a personal deposit account in a financial institution, the financial institution shall require him to show the identity documents of the principal and the agent for checking, and register his name and number on the identity documents of the principal and the agent.

Financial institutions are not allowed to open deposit accounts for people who do not show their identity documents or use their names falsely.

Twelfth financial institutions for corporate customers to open accounts, deposits, settlement and other businesses, should be in accordance with the relevant provisions of the people's Bank of China to provide valid documents and information, check and register.

Financial institutions are not allowed to handle deposits, settlement and other businesses for those who fail to provide valid certification documents and materials of their own units as required.

Thirteenth financial institutions to provide financial services to customers, found that large transactions, should be reported to the people's Bank of China or the State Administration of foreign exchange in accordance with the relevant provisions.

The standard for the amount of large amount of funds shall be implemented in accordance with the provisions of the People's Bank of China and the State Administration of Foreign Exchange on capital transaction reports.

Article 14 When providing financial services to customers, financial institutions shall report suspicious transactions to the People's Bank of China or the State Administration of Foreign Exchange.

Suspicious transaction reporting standards shall be implemented in accordance with the provisions of the People's Bank of China and the State Administration of Foreign Exchange on capital transaction reporting.

Article 15 Branches of financial institutions shall report large and suspicious capital transactions to the People's Bank of China or the local branches of the State Administration of Foreign Exchange in accordance with the provisions of the People's Bank of China and the State Administration of Foreign Exchange on the procedures for reporting capital transactions, and report to their superior units at the same time.

Article 16 Financial institutions shall examine and analyze large-sum and suspicious fund transactions, and report to the local public security department in time if they find any suspected crimes.

Article 17 A financial institution shall keep the customer's account information and transaction records within the following prescribed time limit:

(1) Account information shall be kept for at least 5 years from the date of cancellation;

(2) Transaction records shall be kept for at least 5 years from the transaction bookkeeping date.

The transaction records mentioned in the preceding paragraph include the account holder, the amount deposited or withdrawn through the account, the transaction time, the source and destination of funds, and the method of fund withdrawal.

Account information and transaction records shall be kept in accordance with the relevant provisions of the state on the management of accounting files.

Article 18 The People's Bank of China or the State Administration of Foreign Exchange shall, after analyzing and studying the large-sum and suspicious transaction reports of financial institutions, transfer the reports and other materials to judicial organs in accordance with the procedures stipulated in the Provisions on the Transfer of Suspected Criminal Cases by Administrative Law Enforcement Organs, and shall not disclose the contents of the reports to customers and other personnel of financial institutions.

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 propaganda work for customers and train their staff to master the provisions of anti-money laundering laws, administrative regulations and rules, so as to enhance their anti-money laundering work ability.

Twentieth financial institutions in violation of these provisions, one of the following acts, the people's Bank of China shall be ordered to make corrections within a time limit, given a warning; If no correction is made within the time limit, a fine of 30 thousand yuan may be imposed; If the circumstances are serious, the qualifications of the directly responsible senior managers may be cancelled:

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

(2) Failing to set up or designate a special agency to be responsible for anti-money laundering;

(3) Failing to ask the corporate clients to provide valid supporting documents and materials for checking and registration;

(4) Failing to keep customer account information and transaction records as required;

(five) in violation of the provisions of the anti money laundering work information leaked to customers and other personnel;

(six) failing to report large transactions or suspicious transactions in accordance with the provisions.

Article 21. Financial institutions engaged in foreign exchange business fail to timely report abnormal situations such as large-scale foreign exchange purchase, frequent foreign exchange purchase and large-scale foreign currency cash deposit and withdrawal, and shall be punished in accordance with the provisions of Article 25 of the Measures for Punishment of Financial Violations.

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

Article 23 If a financial institution opens an account for an individual customer who fails to show his/her identity document or uses his/her personal name on the identity document, the People's Bank of China will give him/her a warning and may impose a fine ranging from 65,438 yuan to 5,000 yuan. If the circumstances are serious, the qualifications of the senior managers directly responsible for the financial institution shall be cancelled.

Twenty-fourth China Banking Association, China Finance Company Association and other financial industry self-regulatory organizations may formulate industry anti-money laundering guidelines according to these Provisions.

Article 25 These Provisions shall come into force on March 1 day, 2003.