Strengthening Digital Yuan Security: Postal Savings Bank Takes Action to Manage Customer Identity Information

Strengthening Digital Yuan Security: Postal Savings Bank Takes Action to Manage Customer Identity InformationPostal Savings Bank of China has recently issued an announcement to further strengthen the verification of the completeness and validity of personal customer identity information for digital yuan. The bank will impose restrictions on digital yuan wallets for customers with incomplete identity information

Strengthening Digital Yuan Security: Postal Savings Bank Takes Action to Manage Customer Identity Information

Postal Savings Bank of China has recently issued an announcement to further strengthen the verification of the completeness and validity of personal customer identity information for digital yuan. The bank will impose restrictions on digital yuan wallets for customers with incomplete identity information.

The announcement states that Postal Savings Bank will verify information such as the customer's name, gender, nationality, occupation, residential address or work unit address, contact phone number, type of identity document or identity proof, number, and validity period. For customers with incomplete personal identity information, no copy of ID card, or expired ID card that has not been updated within 90 days, the bank will take measures to lower transaction limits and restrict financial services on the customer's wallet.

Customers can update and complete their customer identity information through the digital yuan app, mobile banking app by uploading a copy of their ID card and updating the validity period, or by visiting a bank branch with their valid ID. Once the information is complete and accurate, the wallet function will be restored.

The security and compliance of digital yuan have always been a key focus for regulators and financial institutions. This is especially true for anonymous wallets, which require balancing user privacy protection and risk control.

Su Xiaorui, a senior researcher at Sookee Zhiyan, believes that this announcement by Postal Savings Bank is in response to relevant regulations regarding financial anti-money laundering and anti-terrorism financing. In reality, some criminals have targeted digital yuan, inducing financial consumers to use their personal digital yuan to help "run points" and engage in activities such as money laundering and financing of terrorism.

Following the announcement, other operating banks are expected to follow suit and conduct information verification on digital yuan wallets they have opened.

The Ordos Municipal Public Security Bureau of Etuokeqian Banner in Inner Mongolia recently disclosed a case of "running points" and money laundering using digital yuan. A local resident reported being defrauded of over 50,000 yuan when applying for a loan online. It was found that the victim's funds were transferred out through a "digital wallet." The Inner Mongolia police apprehended four suspects in Harbin and Qitaihe, Heilongjiang Province, successfully dismantling a "running points" den that used "digital yuan" to commit crimes.

The police said that the suspects, knowing that they would benefit illegally from transferring illicit funds, provided others with their bank cards and mobile phone numbers, and transferred a total of over 300,000 yuan. The four suspects have been criminally detained, and the case is under further investigation.

In addition to strengthening governance in anti-fraud efforts, the digital yuan app has also improved its security through updates and upgrades. Meanwhile, digital yuan services are explicitly included in relevant regulatory requirements for data management, anti-money laundering, and anti-terrorism financing.

Su Xiaorui pointed out that the safety and regulatory actions of digital yuan are mainly aimed at preventing wallet accounts from being exploited by criminals. Operating institutions such as banks need to increase their monitoring of abnormal transactions involving digital yuan, while individual users also need to understand that digital yuan wallets, like traditional bank cards, are not allowed to be rented or lent to others. Otherwise, they may face criminal risks and bear corresponding legal responsibilities.

As the digital yuan pilot program continues, its security will become increasingly important. Both financial institutions and individual users should enhance their security awareness and work together to ensure the secure and compliant development of the digital yuan.