Knowledge about Anti-Money Laundering
I. Choose a secure and reliable financial institution
A legitimate financial institution is subject to supervision; it must perform in accordance with anti-money laundering obligations and keep accountable to clients and themselves. According to the Anti-money Laundering Law of the People’s Republic of China, a financial institution shall keep confidential the client’s identity data and transaction information obtained from performing their AML duties or obligations according to law and may not provide them to any entity or individual, so as to protect the privacy and trade secrets of the clients of the financial institution.
Illegal financial institutions such as illegal banks attempt to evade supervision; they may not only transfer funds and launder “black money” for criminals and terrorists, thus becoming a public scourge; but also fail to guarantee the safety of legitimate clients’ money and property.
If you choose a secure and reliable financial institution that strictly performs its AML, your funds and personal information will be more secure.
II. Proactively cooperate with institutions complying with AML obligations for KYC
(I) When handling your business, please bring your valid identity certificate with you.
A valid ID card is an important document to prove your real identity. In order to prevent others from using your identity to steal your wealth or conduct money laundering and other criminal activities, when you open an account, purchase financial products and establish business relations with a financial institution in any way, you shall:
1. Present your valid ID card or other identity documents;
2. Fill in your identity information truthfully;
3. Cooperate with the financial institution to verify the authenticity of your ID card onsite, or confirm your identity information by telephone, letter or email;
4. Answer reasonable questions raised by the staff of the financial institution.
If you cannot present your valid ID card or other identification documents, the staff of the financial institution will not be able to handle relevant businesses for you.
(II) When depositing or withdrawing large amounts of cash, please present your valid ID card.
When you deposit or withdraw RMB 50,000 or more, or foreign currency equivalent to USD 10,000 or more, the financial institution will check your valid ID card or identification documents. This is not to restrict your right to manage your legitimate income but to prevent criminals from taking advantage of it, protect your funds and create a safer and more effective financial market environment.
(III) When an agent handles business for you, they shall present their and your valid ID cards.
The staff of the financial institution needs to verify the true identity of the transaction subject. When an agent handles businesses on your behalf, the financial institution needs to reasonably confirm your relationship with the agent.
When an agent opens an account, purchases financial products, and deposits or withdraws large amounts of funds on your behalf, the financial institution needs to check the validity of your and your agent’s ID cards.
(IV) If the ID card needs to be replaced upon expiration, please inform the financial institution of updating relevant information in time.
The financial institution can provide services only to the clients with true and valid identity documents. If the identity documents have expired and have not been updated after a reasonable period of time, the financial institution can stop handling relevant business.
III. Do not rent or lend your ID card.
Renting or lending your ID card may result in the following consequences:
1. Others may steal your name to engage in illegal activities.
2. You may inadvertently assist others in conducting money laundering and terrorist financing activities.
3. You may become a “scapegoat” for others’ financial frauds
4. Your integrity may be reasonably doubted
5. Your reputation and credit record may be damaged by the improper behavior of others.
IV. Do not rent or lend your own account, bank card or Ukey
An account, bank card and Ukey are not only tools for your transactions but also important tools for the state to monitor anti-money laundering funds and investigate criminal cases. Corrupt officials, drug traffickers, fraudsters, terrorists and other criminals may use your account, bank card and Ukey for money laundering and terrorist financing. Therefore, refusing to rent or lend your account, bank card and Ukey means protecting your rights and fulfilling your obligations.
V. Do not use your own account to withdraw cash for others.
Cash withdrawal by various means is one of the most common money laundering methods used by criminals. Some people who are entrusted by their friends or tempted by benefits use their personal accounts or company accounts to withdraw cash for others, which provides convenience for others to launder money. However, there is no escape from the eyes of the law. Please remember that the account will keep a record of all your transactions. Do not use your own account to withdraw cash for others.