China Postal Savings Bank Strengthens Identity Information Management for Digital Yuan to Curb Money Laundering Risks

China Postal Savings Bank Strengthens Identity Information Management for Digital Yuan to Curb Money Laundering Risks21st Century Business Herald Intern Reporter Guo Congcong Beijing ReportRecently, China Postal Savings Bank (China Post Bank) issued a "Notice on Promoting the Governance of Customer Identity Information for Digital Yuan" (hereinafter referred to as the "Notice"). The Notice states that China Post Bank will take measures such as lowering transaction limits and restricting financial services for customers whose digital yuan wallets have incomplete personal customer identity information

China Postal Savings Bank Strengthens Identity Information Management for Digital Yuan to Curb Money Laundering Risks

21st Century Business Herald Intern Reporter Guo Congcong Beijing Report

Recently, China Postal Savings Bank (China Post Bank) issued a "Notice on Promoting the Governance of Customer Identity Information for Digital Yuan" (hereinafter referred to as the "Notice"). The Notice states that China Post Bank will take measures such as lowering transaction limits and restricting financial services for customers whose digital yuan wallets have incomplete personal customer identity information.

Strengthening Identity Information Verification for Digital Yuan Customers

The Notice states that, based on relevant anti-money laundering policies and requirements, China Post Bank will further strengthen the verification of the completeness and validity of personal customer identity information for digital yuan. The verified customer identity information includes: name, gender, nationality, occupation, residential address or work unit address, contact number, type, number, and validity period of identity document or identity certificate.

For personal customers with incomplete identity information, those who have not kept a copy of their ID card, or whose ID card has expired and has not been updated within 90 days, China Post Bank will take measures such as lowering transaction limits and restricting financial services for their wallets.

Providing Multiple Ways to Update Information

To facilitate timely updates to customer information, China Post Bank provides multiple channels:

• Digital Yuan APP Client: Customers can upload copies of their ID cards and update the validity period of their ID through the Digital Yuan APP client;

• Mobile Banking Client: Customers can upload copies of their ID cards and update the validity period of their ID through the mobile banking client;

• Offline Branch: Customers can bring their valid ID card to an offline branch to update their customer identity information.

Once the information is complete and accurate, the customer can restore their wallet functionality.

Digital Yuan Money Laundering Risks Cannot Be Ignored

Digital yuan is the digital form of legal tender issued by the People's Bank of China. Since the People's Bank of China launched the development of central bank digital currency in 2014, the development of digital yuan has been booming. By the end of 2023, the pilot program for digital yuan has expanded to 26 locations in 17 provinces and cities. Not only is the digital currency pilot program steadily advancing, but the use of digital currency is also expanding in terms of scope and richness of scenarios.

However, with the increase in cases of money laundering through virtual currencies, illegal engagement in fund payment and settlement, and illegal buying and selling of foreign exchange, cross-border transfer of funds through virtual currency transactions has become a new method. Some cases of money laundering have also emerged in the digital yuan field, and the special risks behind them deserve attention.

Revised Anti-Money Laundering Law Strengthens Bank Responsibility

This reporter has learned that, with the formal review and passage of the revised draft of the Anti-Money Laundering Law by the Standing Committee of the National People's Congress in April this year, the Anti-Money Laundering Law will undergo its first major revision since its implementation in 2007. The revised draft particularly emphasizes the legal responsibilities of anti-money laundering obligation entities such as banking institutions. The revised draft stipulates that banks and other financial institutions should, in accordance with the law, take preventive and monitoring measures, establish and improve internal control systems for anti-money laundering, perform customer due diligence, maintain customer identity information and transaction records, report large transactions and suspicious transactions, and implement anti-money laundering special preventive measures.

Strengthening Identity Information Management to Maintain Digital Yuan Security

China Post Bank's strengthening of identity information management for digital yuan customers is an important measure to implement the requirements of anti-money laundering laws and regulations, which helps to maintain the security of digital yuan transactions and prevent money laundering risks.

For individual customers, timely updating and perfecting personal identity information not only helps in the normal use of digital yuan wallets but also serves as an important guarantee for safeguarding their property security.