Postal Savings Bank Tightens Digital RMB Wallets: Preventing Money Laundering and Strengthening Identity Information Management

Postal Savings Bank Tightens Digital RMB Wallets: Preventing Money Laundering and Strengthening Identity Information ManagementAs money laundering methods in the financial sector continue to evolve, relevant authorities need to adjust their business policies accordingly. Recently, Postal Savings Bank of China (PSBC) issued a notice on its official website stating that it will strengthen identity information management for digital RMB customers based on anti-money laundering policies and requirements

Postal Savings Bank Tightens Digital RMB Wallets: Preventing Money Laundering and Strengthening Identity Information Management

As money laundering methods in the financial sector continue to evolve, relevant authorities need to adjust their business policies accordingly. Recently, Postal Savings Bank of China (PSBC) issued a notice on its official website stating that it will strengthen identity information management for digital RMB customers based on anti-money laundering policies and requirements. For personal customers whose identity information is incomplete, PSBC will impose restrictions on their wallets, including lowering transaction limits and limiting financial services.

Incomplete Identity Information Results in Wallet Restrictions

According to PSBC's official notice, the bank will further verify the completeness and validity of digital RMB personal customers' identity information. The information to be verified includes: name, gender, nationality, occupation, residential address or work unit address, contact number, type, number, and expiration date of identity document or proof of identity.

For personal customers whose identity information is incomplete, who have not uploaded a copy of their identity document, or whose identity document has expired and has not been updated within 90 days, PSBC will take measures such as lowering transaction limits and restricting financial services for their wallets.

PSBC stated that if customers need to continue using their wallets normally, they can upload copies of their documents and update the expiration date of their documents through the digital RMB app, the PSBC mobile banking app, or by visiting any PSBC branch with their valid identity document to update their identity information. Once the information is complete and accurate, the wallet functions will be restored.

Digital RMB Identity Information Management Primarily Targets Low-Permission Wallets

An analyst from a securities brokerage firm specializing in the banking sector stated that digital RMB was designed with an emphasis on controllable anonymity and security, and has different levels of design. By default, users open a low-permission anonymous wallet that generally does not require them to provide identity information to institutions, but the transaction limit is low and is mainly used for general consumption. If large-scale transactions are required, real-name authentication is necessary.

The analyst believes that PSBC's mentioned identity information management for digital RMB should primarily target low-permission digital RMB wallet users. "To a certain extent, some anonymous digital RMB transactions do pose money laundering risks."

Multiple Banks Undertake Customer Identity Information Management Campaigns

Cailian Press reporters have found that this year, multiple banking institutions, including Qinghai Bank, Guangdong Xingning Rural Commercial Bank, Inner Mongolia Rural Credit Cooperative, Zhengzhou Agricultural Commercial Bank, Erlianhot Rural Cooperative Bank, and Dengkou County Rural Credit Cooperative, have announced the launch of customer identity information management campaigns targeting cardholders.

Furthermore, at the end of May, PSBC released a notice regarding personal customer identity information management. At that time, PSBC stated that based on the requirements of the "Anti-Money Laundering Law of the People's Republic of China," "Regulations on Real-Name System for Personal Deposit Accounts," and "Measures for Financial Institutions on Identifying Customer Identity and Maintaining Customer Identity Information and Transaction Records," the bank would conduct verification work on the authenticity, completeness, and validity of personal customer identity information from April 2024. From August 2024 onwards, the bank would further impose business restrictions on personal customers whose identity information remains incomplete, inaccurate, or whose personal identity documents have expired or are questionable in terms of authenticity, based on the preliminary personal customer information management and business restrictions.

PBOC Emphasizes Anti-Money Laundering Work, Financial Institutions Need to Assume More Responsibility

On June 26, the Party branch of the Anti-Money Laundering Bureau of the People's Bank of China (PBOC) published an article titled "Fully " ("Comprehensively Carry Out Anti-Money Laundering Work in the New Era to Provide a Solid Guarantee for Financial Development and Stability"). In the article, the PBOC pointed out the need to comprehensively promote anti-money laundering legal systems, work mechanisms