At the beginning of the new year, the people's Bank of China, the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission jointly issued the measures for the administration of customer due diligence and the preservation of customer identity data and transaction records of financial institutions, which will come into force on March 1, 2022. Among them, the new regulations on personal cash deposit and withdrawal have aroused widespread concern. The measures mentioned that if commercial banks, rural cooperative banks, rural credit cooperatives, rural banks and other financial institutions handle a single cash deposit and withdrawal business of more than 50000 yuan or foreign currency equivalent of more than 10000 US dollars for natural person customers, they should identify and verify the identity of customers, understand and register the source or purpose of funds. Compared with the current regulations, it can be found that the new regulations add the requirement of "understanding and registering the source or purpose of funds". Why is such a provision added? "The main purpose is to prevent and curb illegal and criminal activities such as money laundering and protect the safety and interests of the people's funds." The person in charge of the relevant departments and bureaus of the people's Bank of China explained that in recent years, illegal and criminal activities such as telecommunications fraud, illegal fund-raising, illegal pyramid schemes, cross-border gambling and underground banks have been rampant, seriously endangering the interests of the people. In 2021 alone, public security organs investigated more than 370000 cases of telecommunications fraud, with victims all over the country. The chief researcher believes that it is difficult to track the financial order by making use of anonymous cash, which is often harmful to the national financial order. The measures will help improve the anti money laundering supervision system, crack down on illegal cash use, improve the level of anti money laundering, reduce money laundering, terrorist financing and other criminal activities, and better maintain financial stability and financial security. Will the new regulations bring inconvenience to personal cash deposit and withdrawal? The person in charge of the relevant departments and bureaus of the people's Bank of China made it clear that the implementation of the relevant provisions of the measures by financial institutions will not affect the normal cash deposit and withdrawal business of individuals. Under normal circumstances, financial institutions do not need customers to fill in information or provide supporting materials. After simple inquiry and understanding, financial institutions can directly handle cash deposit and withdrawal business for customers and register relevant information. Only when the transaction is obviously abnormal and there are reasonable reasons to suspect that the transaction is suspected of money laundering and other illegal and criminal activities, can they further understand the situation from customers. In fact, the deposit and withdrawal business of residents' legitimate income has been strictly protected by law in China. The "voluntary deposit" and "freedom of withdrawal" are clearly stipulated in the commercial bank law, which are also the basic principles that financial institutions should follow in handling cash deposit and withdrawal business. In recent years, in order to prevent illegal and criminal activities such as telecommunications fraud and money laundering, many financial institutions have made necessary understanding and tips on the source and purpose of funds when handling large cash deposit and withdrawal business from the customer-centered concept, and formed some experience and practices. When studying and drafting the measures, the financial management department summarized and unified the relevant practices of financial institutions, which is also conducive to maintaining the consistency of business handling norms of financial institutions. At the same time, statistically, at present, the number of cash deposit and withdrawal businesses with more than 50000 yuan in China accounts for only about 2% of all cash deposit and withdrawal businesses. On the whole, the relevant provisions of the measures have little impact on customers' handling of cash business. "Domestic efforts to speed up the completion of relevant regulatory weaknesses are also gradually connected with international prevailing systems and norms." Zhou Maohua, a macro researcher of the financial market department of Everbright Bank, believes that the relevant provisions on personal cash deposit and withdrawal business in the measures meet the requirements of the current international anti money laundering standards and are an internationally accepted practice to prevent money laundering activities. The international anti money laundering standard of the Financial Action Task Force (FATF) clearly requires that financial institutions should carry out due diligence on cash transactions exceeding a certain amount, and China, as its member, should implement the requirements of the international anti money laundering standard. At present, major countries in the world have similar requirements for cash transactions of more than a certain amount. "The new measures put forward more requirements and challenges to financial institutions. Financial institutions should improve their business processes, transform relevant systems as soon as possible, use scientific and technological means to strengthen the monitoring ability of large and suspicious transactions, and improve the level of anti money laundering. Financial management departments and financial institutions should pay more attention to the measures To enable the public to fully understand and cooperate with customer due diligence and the preservation of identity data and transaction records, so as to promote the smooth implementation of the measures. " Dong ximiao said. The person in charge of the relevant departments and bureaus of the people's Bank of China stressed that in the next step, the people's Bank of China will guide financial institutions to formulate implementation rules. While earnestly fulfilling their anti money laundering obligations, they should strictly implement the minimum and necessary principles to understand and register customer information, and shall not increase the burden on customers. Especially for the elderly and other groups who use more cash, financial institutions should take the initiative to provide more friendly and convenient services. (reporter Yao Jin) (outlook new era)