Administrative Measures for Anti-money Laundering and Counter-terrorism Financing by Internet Finance Service Agencies (for Trial Implementation)
Administrative Measures for Anti-money Laundering and Counter-terrorism Financing by Internet Finance Service Agencies (for Trial Implementation)
Administrative Measures for Anti-money Laundering and Counter-terrorism Financing by Internet Finance Service Agencies (for Trial Implementation)
October 10, 2018
Article 1 These Measures are formulated in accordance with the Law of the People's Republic of China on the People's Bank of China, the Anti-Money Laundering Law of the People's Republic of China, the Anti-terrorism Law of the People's Republic of China, the Circular of the General Office of the State Council on Issuing the Implementing Proposals for the Special Rectification of Internet Financial Risks (Guo Ban Fa [2016] No.21), the Guiding Opinions of the People's Bank of China, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Finance, the State Administration for Industry and Commerce, the Legislative Affairs Office, the China Banking Regulatory Commission, the China Securities Regulatory Commission, the China Insurance Regulatory Commission and the State Internet Information Office on Promoting the Healthy Development of Internet Finance (Yin Fa [2015] No.221) and other provisions, with a view to preventing money laundering and terrorism financing activities and regulating the work on anti-money laundering and counter-terrorism financing in the internet finance industry.
Article 2 Institutions established within the territory of the People's Republic of China to legally carry out internet finance business, upon approval of, or after filing a record with, the department with the authority (hereinafter referred to as the "service agencies"), shall be governed by these Measures.
Internet finance is a new-type financial business model under which internet-based technologies and information communication technologies are employed to make possible fund financing, payments, investments and information intermediary services. The specific scope of work on anti-money laundering and counter-terrorism financing in the internet finance industry shall be determined, adjusted and released by the People's Bank of China ("PBC") in concert with relevant financial regulators of the State Council in accordance with laws, regulations and regulatory rules, including but not limited to the online payment, peer-to-peer lending, peer-to-peer lending information intermediary services, equity crowdfunding financing, internet fund sale, internet insurance, internet trust and internet consumption finance.
Financial institutions and non-banking payment institutions that carry out internet finance business shall observe the provisions hereof; other separate provisions of the PBC and relevant financial regulators of the State Council, if any, shall prevail.
Article 3 The PBC is the competent administrative department for anti-money laundering under the State Council and shall perform duties of supervising the efforts of service agencies in anti-money laundering and counter-terrorism financing. Relevant financial regulators of the State Council shall cooperate with the PBC in performing duties of supervising efforts in anti-money laundering and counter-terrorism financing, within their respective functions and duties. The PBC shall formulate, or work with relevant financial regulators of the State Council to formulate, the rules concerning the fulfillment of anti-money laundering and counter-terrorism financing obligations by service agencies.
The China Anti-money Laundering Monitoring and Analysis Center established by the PBC shall take charge of receiving, analyzing and saving reports on large-amount transactions and doubtful transactions from service agencies, report analysis results to the PBC in accordance with the relevant provisions, and perform other duties specified by the PBC.
Article 4 The National Internet Finance Association of China shall, in accordance with the provisions of the PBC and relevant financial regulators of the State Council on the fulfillment of anti-money laundering and counter-terrorism financing obligations by service agencies, coordinate efforts of other industry self-regulation associations in enacting and releasing the industry rules that are applicable to various service agencies to implement these Measures, cooperate with the PBC and its branch offices in fighting online and offline against money laundering, assessing risks of money laundering and terrorism financing and publishing risk assessment reports and risk warning information, and arrange for and prompt various service agencies to formulate and implement the self-disciplinary pacts in respect of anti-money laundering and counter-terrorism financing.
Other industry self-regulation organizations shall, on the basis of the provisions of the PBC and relevant financial regulators of the State Council, raise requirements on establishing the sound anti-money laundering internal control system for service agencies, and cooperate with the National Internet Finance Association of China in promoting the business exchange and information sharing between service agencies.
Article 5 The PBC will develop an online monitoring platform for anti-money laundering and counter-terrorism financing in the internet finance industry (hereinafter referred to as the "online monitoring platform"), and this online monitoring platform will be used to improve the online regulatory mechanism for anti-money laundering and strengthen information sharing.
The National Internet Finance Association of China shall, in accordance with the requirements of the PBC and relevant financial regulators of the State Council, develop, operate and maintain the online monitoring platform, and ensure the safety, confidentiality and completeness of the online monitoring platform and relevant information, data and materials.
Branch offices of the PBC and the China Anti-money Laundering Monitoring and Analysis Center will use the online monitoring platform within their respective functions and duties.
Article 6 Other service agencies than financial institutions and non-banking payment institutions shall register the fulfillment of duties in anti-money laundering and counter-terrorism financing on the online monitoring platform.
Financial institutions and non-banking payment institutions may, depending on the needs for anti-money laundering work, connect with the online monitoring platform to participate in exchange of work information, share technical facilities and assess risks on this platform.
Article 7 Service agencies shall follow the risk-oriented principle, and establish a sound internal control system for anti-money laundering and counter-terrorism financing, strengthen compliance management for anti-money laundering and counter-terrorism financing and improve the relevant risk management mechanism, in accordance with laws, regulations and industry rules.
A service agency shall formulate the unified compliance management policies for anti-money laundering and counter-terrorism financing, and conduct the unified management of the efforts of its affiliates, branches and units at home and abroad in anti-money laundering and counter-terrorism financing.
Each service agency shall submit its internal control system for anti-money laundering and counter-terrorism financing in the designated way to the PBC and its branch office, and the relevant financial regulator of the State Council and its local branch.
Article 8 A service agency shall clearly specify the duties of its directors, senior executives and managers of units against money laundering and terrorism financing.
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October 10, 2018
Article 1 These Measures are formulated in accordance with the Law of the People's Republic of China on the People's Bank of China, the Anti-Money Laundering Law of the People's Republic of China, the Anti-terrorism Law of the People's Republic of China, the Circular of the General Office of the State Council on Issuing the Implementing Proposals for the Special Rectification of Internet Financial Risks (Guo Ban Fa [2016] No.21), the Guiding Opinions of the People's Bank of China, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Finance, the State Administration for Industry and Commerce, the Legislative Affairs Office, the China Banking Regulatory Commission, the China Securities Regulatory Commission, the China Insurance Regulatory Commission and the State Internet Information Office on Promoting the Healthy Development of Internet Finance (Yin Fa [2015] No.221) and other provisions, with a view to preventing money laundering and terrorism financing activities and regulating the work on anti-money laundering and counter-terrorism financing in the internet finance industry.
Article 2 Institutions established within the territory of the People's Republic of China to legally carry out internet finance business, upon approval of, or after filing a record with, the department with the authority (hereinafter referred to as the "service agencies"), shall be governed by these Measures.
Internet finance is a new-type financial business model under which internet-based technologies and information communication technologies are employed to make possible fund financing, payments, investments and information intermediary services. The specific scope of work on anti-money laundering and counter-terrorism financing in the internet finance industry shall be determined, adjusted and released by the People's Bank of China ("PBC") in concert with relevant financial regulators of the State Council in accordance with laws, regulations and regulatory rules, including but not limited to the online payment, peer-to-peer lending, peer-to-peer lending information intermediary services, equity crowdfunding financing, internet fund sale, internet insurance, internet trust and internet consumption finance.
Financial institutions and non-banking payment institutions that carry out internet finance business shall observe the provisions hereof; other separate provisions of the PBC and relevant financial regulators of the State Council, if any, shall prevail.
Article 3 The PBC is the competent administrative department for anti-money laundering under the State Council and shall perform duties of supervising the efforts of service agencies in anti-money laundering and counter-terrorism financing. Relevant financial regulators of the State Council shall cooperate with the PBC in performing duties of supervising efforts in anti-money laundering and counter-terrorism financing, within their respective functions and duties. The PBC shall formulate, or work with relevant financial regulators of the State Council to formulate, the rules concerning the fulfillment of anti-money laundering and counter-terrorism financing obligations by service agencies.
The China Anti-money Laundering Monitoring and Analysis Center established by the PBC shall take charge of receiving, analyzing and saving reports on large-amount transactions and doubtful transactions from service agencies, report analysis results to the PBC in accordance with the relevant provisions, and perform other duties specified by the PBC.
Article 4 The National Internet Finance Association of China shall, in accordance with the provisions of the PBC and relevant financial regulators of the State Council on the fulfillment of anti-money laundering and counter-terrorism financing obligations by service agencies, coordinate efforts of other industry self-regulation associations in enacting and releasing the industry rules that are applicable to various service agencies to implement these Measures, cooperate with the PBC and its branch offices in fighting online and offline against money laundering, assessing risks of money laundering and terrorism financing and publishing risk assessment reports and risk warning information, and arrange for and prompt various service agencies to formulate and implement the self-disciplinary pacts in respect of anti-money laundering and counter-terrorism financing.
Other industry self-regulation organizations shall, on the basis of the provisions of the PBC and relevant financial regulators of the State Council, raise requirements on establishing the sound anti-money laundering internal control system for service agencies, and cooperate with the National Internet Finance Association of China in promoting the business exchange and information sharing between service agencies.
Article 5 The PBC will develop an online monitoring platform for anti-money laundering and counter-terrorism financing in the internet finance industry (hereinafter referred to as the "online monitoring platform"), and this online monitoring platform will be used to improve the online regulatory mechanism for anti-money laundering and strengthen information sharing.
The National Internet Finance Association of China shall, in accordance with the requirements of the PBC and relevant financial regulators of the State Council, develop, operate and maintain the online monitoring platform, and ensure the safety, confidentiality and completeness of the online monitoring platform and relevant information, data and materials.
Branch offices of the PBC and the China Anti-money Laundering Monitoring and Analysis Center will use the online monitoring platform within their respective functions and duties.
Article 6 Other service agencies than financial institutions and non-banking payment institutions shall register the fulfillment of duties in anti-money laundering and counter-terrorism financing on the online monitoring platform.
Financial institutions and non-banking payment institutions may, depending on the needs for anti-money laundering work, connect with the online monitoring platform to participate in exchange of work information, share technical facilities and assess risks on this platform.
Article 7 Service agencies shall follow the risk-oriented principle, and establish a sound internal control system for anti-money laundering and counter-terrorism financing, strengthen compliance management for anti-money laundering and counter-terrorism financing and improve the relevant risk management mechanism, in accordance with laws, regulations and industry rules.
A service agency shall formulate the unified compliance management policies for anti-money laundering and counter-terrorism financing, and conduct the unified management of the efforts of its affiliates, branches and units at home and abroad in anti-money laundering and counter-terrorism financing.
Each service agency shall submit its internal control system for anti-money laundering and counter-terrorism financing in the designated way to the PBC and its branch office, and the relevant financial regulator of the State Council and its local branch.
Article 8 A service agency shall clearly specify the duties of its directors, senior executives and managers of units against money laundering and terrorism financing.
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