Important Regulatory Notice - BNP Paribas China

Measures for the Administration of Financial Institutions’ Reporting of High-Value Transactions and Suspicious Transactions (Order No. 3 [2016] of PBOC) take effect since 1st July 2017

Measures for the Administration define the new requirements of financial institutions to comply with their suspicious transactions reporting duties at the regulatory level, and contribute to the effectiveness of financial institutions’ reporting of suspicious transactions. Measures for the Administration will also contribute to the prevention of crimes such as money laundering and terrorism financing, to the maintenance of our financial system’s safety and order, and to further alignment with international standards.

There are four major changes compared with the previous version are to:

  • Define the suspicious transactions reporting requirements based on REASONABLE SUSPICION
  • Adjust the reporting threshold of High-Value Transactions denominated in RMB from 200,000.00 to 50,000.00
  • Newly add the application scope of regulations, reporting threshold of cross-border RMB transactions, etc.
  • Adjust the transaction reporting elements

When enterprises and individuals carry out fund receipt, payment or transfer, or other in-scope transactions, the obligation of reporting High-Value Transactions is performed by financial institutions like banks. Enterprises and individuals need not perform additional reporting procedures. The rules for reporting High-Value Transactions in Measures for the Administration neither have any impact on the normal foreign exchange business of enterprises and individuals, nor will change the amount limit of annual foreign exchange purchasing of a domestic individual. The new regulation does not involve the adjustment of individual foreign exchange business policy.

You may also find more information on Anti-Money Laundering from the following website of the People’s Bank of China.

http://www.pbc.gov.cn/redianzhuanti/118742/118675/119088/index.html

 

 

Risk Alert — Preventing From Money Laundering Activities, Combating Terrorism Financing to Maintain the Financial Order” 

 

Following regulatory requirements from the People’s Bank of China, we would like to draw your attention to protect your personal financial information and to prevent from money laundering activities, so as to ensure security of your personal financial interests and maintain the social financial order.

To ensure security of your own financial assets and keep a sound credit records, it is essential to protect your personal financial information and to prevent other people engaging in illegal activities in the guise of your name. We highlight below tips for your attention:

  • Always choose safe and reliable financial institutions for financing services and products
  • Don’t let others use your personal identification credentials
  • Don’t let others use your bank account for transactions
  • Don’t use your bank account to make cash withdrawal or wire transfer or foreign exchange for others
  • Be prudent and choose reliable online services for transaction
  • Be vigilant in disclosing your personal financial information through online or offline promotion
  • Only make payment transfer with counterparties and for transaction purpose you know well

You may also find more information on Anti-Money Laundering from the following website of the People’s Bank of China.

http://www.pbc.gov.cn/redianzhuanti/118742/118675/119088/index.html

 

 

Seven-Forbidden

1. Not to turn loans into deposits. Each bank shall adhere to the principle of “actual-loans-to-pay and entrusted payment” in the loan business, pay the loan funds to the counterparty of the borrower (s) in full, and shall not turn part of the loans into deposits by setting mandatory clauses or through negotiations.

2. Not to link the deposits with the loans. The loan business of the banking financial institutions shall be strictly separated from their deposit business, and no approval or issue of any loan shall be conditioned upon the deposits.

3. Not to charge extra fees on the loans. All banking financial institutions shall not charge fees by requiring the client (s) to accept unreasonable intermediary services or other financial services upon the issuance of loans or provision of financing through alternative means.

4. Not to inflate the interest and divide it into fees. All banking financial institutions shall comply strictly with the principle of “separation of the interest from the fees”, strictly distinguish between the interest bearing and charge businesses, shall not charge fees by dividing the interest into fees or increase the interest rate in alternative forms.

5. Not to be reluctant to issue loans and bundle the loans with the sale of other financial products. All banking financial institutions shall not bundle or pack the loans with the sale of other financial products such as wealth management, insurance and funds when issuing loans or providing financing through alternative means.

6. Not to inflate to the upper limit. The pricing of the loans of the banking financial institutions shall fully reflect the capital cost, risk cost and management cost and no bank shall inflate the loan interest rate to the upper limit uniformly.

7. Not to transfer the cost. Each banking financial institution shall bear the costs associated with due diligence investigation and collateral appraisal, etc incurred during the course of carrying out the loan business and other services by law and shall not pass on the operating costs to the clients in the form of fees.

Four-Transparency

Transparent in fee charge items
Transparent in service price and quality
Transparent in purpose and function
Transparent in preferential policies

  • BNP Paribas