Source: People's Bank of China
1. Background of the Regulations on Anti-Money Laundering and Anti-Terrorist Financing by Internet Financial Institutions
In July 2015, the People's Bank of China and other ten departments jointly issued the Guiding Opinions on Promoting the Healthy Development of Internet Finance (No. 221 of the Bank of China, 2015). It is clear that the People's Bank of China will take the lead in supervising the implementation of anti-money laundering obligations by the employees and formulate relevant regulatory rules. In April 2016, the general office of the State Council issued the implementation plan for special rectification of Internet financial risks. Since the implementation of the rectification work, the overall risk level of Internet finance has dropped significantly, and the regulatory mechanism and system have gradually improved. However, the task of risk prevention and resolution in the Internet financial field is still at a critical stage. In order to standardize the anti-money laundering and anti-terrorist financing work of Internet financial institutions and effectively prevent money laundering and terrorist financing activities, the People's Bank of China, the China Banking Insurance Regulatory Commission and the China Securities Regulatory Commission have formulated the Measures for the Administration of Anti-money laundering and Anti-terrorist Financing of Internet Financial Institutions (for trial implementation). "(hereinafter referred to as" management measures ").
Two, the main purpose of the "management measures" is promulgated.
The first is to establish a supervision mechanism against money laundering combined with supervision and management. It is clear that the People's Bank of China and the relevant financial supervision and management institutions under the State Council should combine the supervision with the self-discipline management of mutual funds associations so as to perform their duties with different emphasis and cooperate with each other. At the same time, give full play to the management role of mutual fund associations and other self-discipline organizations, with the help of the strength of self-discipline organizations, to urge employees to strengthen the construction of internal control, enhance awareness of anti-money laundering, and enhance the effectiveness of supervision. The two is to establish substantive and effective regulatory framework for the whole industry. The "management measures" stipulate the principle of anti money laundering obligation that the employment agencies need to fulfill. At the same time, it is clear that mutual fund associations should coordinate other self-regulatory organizations to formulate industry rules, so as to achieve an effective link between supervision and self-regulatory management.
Three. Main contents of management measures
The Regulations mainly regulate the anti-money laundering and anti-terrorist financing work of Internet financial institutions from the following aspects:
(1) a clear scope of application. These measures shall be applicable to the institutions established within the territory of the People's Republic of China with the approval of the competent departments or on the record to conduct Internet financial business according to law.
(two) stipulate basic obligations. First, we should establish and improve the internal control mechanism of anti money laundering and anti terrorist financing. Employees should follow the risk-based approach, formulate and improve the internal control system of anti-money laundering and anti-terrorist financing in accordance with laws, regulations, normative documents and industry rules. Two, effective customer identification. Employees should collect essential information in accordance with laws, regulations, normative documents and industry rules, take reasonable measures to identify and verify the true identity of customers, and determine and timely adjust the risk level of customers by using information or data obtained from reliable channels and in a reliable manner. The customer identity should be re identified for doubt about the customer identity data previously obtained. The three is to submit large and suspicious transaction reports. Employees should implement the reporting system for large-scale transactions and suspicious transactions, establish and improve the monitoring system for large-scale transactions and suspicious transactions, customize the monitoring standards for transactions and customer behavior monitoring programs, and report suspicious transactions based on reasonable suspicion. The four is to monitor the terrorism related lists. Practitioners should conduct real-time monitoring of terrorist-related lists. If there are reasonable reasons to suspect that a client or his counterparty, funds or other assets are related to the lists, they should submit a suspicious transaction report immediately and take freezing measures against relevant funds or other assets according to law. The five is to maintain customer identity information and transaction records. Practitioners should properly preserve the information, data and information generated by anti-money laundering and anti-terrorist financing, ensure that each transaction can be fully reproduced, and ensure that the relevant work can be traced back.
(three) establish regulatory responsibilities. The Administrative Measures stipulate that the practitioners shall accept the on-site inspection, off-site supervision and anti-money laundering investigation of the People's Bank of China and its branches against money laundering and anti-terrorist financing in accordance with the law, and cooperate with the supervision and management of the relevant financial supervision and management institutions under the State Council and their dispatched offices in accordance with the law. In the aspect of supervision and punishment, the People's Bank of China and its branches, the relevant financial supervision and regulation institutions under the State Council and their dispatched offices shall order them to rectify within a time limit and punish them according to law if they violate these Measures. If an employing institution violates relevant laws, administrative regulations, rules and regulations and the provisions of these Measures and is suspected of committing a crime, it shall be transferred to the judicial organ for investigation of criminal responsibility according to law.
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