Strengthening the Security of Digital RMB: Postal Savings Bank Takes Action to Govern Customer Identity Information

Strengthening the Security of Digital RMB: Postal Savings Bank Takes Action to Govern Customer Identity Information Beijing Business Daily (reporter Liao Meng) To strengthen the security of digital RMB, Postal Savings Bank recently issued a notice stating that it will further strengthen the verification of the completeness and validity of identity information of individual digital RMB customers. For customers with incomplete identity information, restrictions will be imposed on their digital RMB wallets

Strengthening the Security of Digital RMB: Postal Savings Bank Takes Action to Govern Customer Identity Information

Beijing Business Daily (reporter Liao Meng) To strengthen the security of digital RMB, Postal Savings Bank recently issued a notice stating that it will further strengthen the verification of the completeness and validity of identity information of individual digital RMB customers. For customers with incomplete identity information, restrictions will be imposed on their digital RMB wallets.

The notice shows that, in accordance with the requirements of the "Anti-Money Laundering Law of the People's Republic of China," "Measures for the Administration of Financial Institution Customer Identification and Customer Identity Information and Transaction Record Preservation," and "Guidelines for Anti-Money Laundering and Anti-Terrorist Financing of Digital RMB," Postal Savings Bank requires verification of information including name, gender, nationality, occupation, address or address of work unit, contact number, type, number, and expiry date of identity document or identity certificate. For individual customers with incomplete identity information, who have not retained a photocopy of their identity document, or whose identity document has expired and has not been updated in a timely manner within 90 days, restrictions such as lowering transaction limits and restricting financial services will be imposed on their wallets.

At the same time, Postal Savings Bank reminds users that after being restricted, they can update and complete their customer identity information by uploading a copy of their document through the Digital RMB App client, mobile banking client, or by bringing their valid identity document to a bank branch. Once the information is complete and accurate, wallet functionality can be restored.

"Digital RMB also needs to be checked to see if it is the real person, enhancing security!" commented a user in response to Postal Savings Bank's notice.

Since the advancement of the digital RMB pilot program, the security and compliance of digital RMB operations have been a key focus of regulators and banking institutions. In particular, the use of anonymous wallets requires balancing user privacy protection and risk control.

In the view of Su Xiaorui, senior researcher at Su Xi Zhi Yan, Postal Savings Bank's notice regarding digital RMB is a response to relevant regulations on anti-money laundering and anti-terrorist financing. In reality, some criminals have targeted digital RMB, inducing financial consumers to use their personal digital RMB for "running points" and engaging in related activities such as money laundering and terrorist financing.

Following Postal Savings Bank's notice, other operating banks are expected to follow suit and conduct information verification of digital RMB wallets they have opened. Information released by the police also shows that cases involving running points and money laundering through digital RMB accounts remain a priority for crackdown efforts.

Public Security Bureau of Ordos City, Inner Mongolia, recently disclosed that a resident in the jurisdiction reported being defrauded of over 50,000 yuan through online loan applications. Upon investigation, the victim's funds were transferred through "digital wallets." Ultimately, Inner Mongolia police apprehended four criminal suspects in Harbin, Heilongjiang province, and Qitaihe, successfully dismantling a "running points" den that used "digital RMB" to commit crimes.

According to the introduction, the suspects, aware that transferring funds obtained from illegal activities would result in illegal gains, still provided others with their bank cards and mobile phone numbers, transferring a total of over 300,000 yuan. The four suspects have been taken into custody for criminal investigation, and the case is under further investigation.

In addition to enhancing governance in anti-fraud efforts, the digital RMB App has been upgraded and improved in terms of its own security during the digital RMB pilot program. Additionally, digital RMB operations have been explicitly included in related regulatory requirements for data management, anti-money laundering, and anti-terrorist financing.

Su Xiaorui points out that the security and regulatory actions taken for digital RMB aim to prevent wallets from being exploited by criminals. Banks and other operating institutions need to increase monitoring of abnormal transactions involving digital RMB. Individual users also need to understand that digital RMB wallets, like traditional bank cards, should not be rented or lent to others. Failure to do so could result in legal risks and corresponding legal liabilities.