What Is a Suspicious Activity Report?

A suspicious transaction reporting system refers to a case where a financial institution must promptly report to the People's Bank of China or the State Administration of Foreign Exchange when the financial institution determines that the money with which the customer engages in transactions may come from criminal activities in accordance with the relevant indicators prescribed by the People's Bank of China system.

Suspicious transaction report

Right!

A suspicious transaction reporting system refers to a case where a financial institution must promptly report to the People's Bank of China or the State Administration of Foreign Exchange when the financial institution determines that the money with which the customer engages in transactions may come from criminal activities in accordance with the relevant indicators prescribed by the People's Bank of China. system.

Chinese name

Suspicious transaction report

Issued

People's Bank of China

Release date

2006-11-14

effective date

2007-03-01

It is important to point out that although the suspicious transaction reporting system refers to the system in which financial institutions report suspicious transactions to the People's Bank of China or the foreign exchange bureau, it does not affect and prevent financial institutions from reviewing suspicious transactions and finding suspected crimes in a timely manner. Report the fulfillment of obligations to the local public security department.

[Issuing Unit] People's Bank of China

[Issue number] Order of the People's Bank of China [2006] No. 2

[Release Date] 2006-11-14

[Effective Date] 2007-03-01

[Expiry date] -----------

[Category] National laws and regulations

[File Source] China Government Website

Measures for the Administration of Financial Institutions' Reports on Large-amount Transactions and Suspicious Transactions

(Order of the People's Bank of China [2006] No. 2)

According to the Law of the People's Republic of China on Anti-Money Laundering and the Law of the People's Republic of China on the People's Bank of China, the People's Bank of China has formulated the Measures for the Administration of Financial Institutions' Reports on Large-Amount Transactions and Suspicious Transactions. It has been approved by 25 president office meetings and is hereby released for implementation from March 1, 2007.

Zhou Xiaochuan

November 14, 2006

Measures for the Administration of Financial Institutions' Reports on Large-amount Transactions and Suspicious Transactions

Article 1 In order to prevent the use of financial institutions for money laundering activities and regulate the reporting of large-value transactions and suspicious transactions by financial institutions, in accordance with the relevant laws and administrative regulations of the Anti-Money Laundering Law of the People's Republic of China and the Law of the People's Republic of China on the People's Bank of China, Develop this approach.

Article 2 These Measures shall apply to the following financial institutions established in accordance with the law within the territory of the People's Republic of China:

(1) Commercial banks, urban credit cooperatives, rural credit cooperatives, postal savings and exchange agencies, and policy banks.

(2) Securities companies, futures brokerage companies, and fund management companies.

(3) Insurance companies and insurance asset management companies.

(4) Trust and investment companies, financial asset management companies, finance companies, financial leasing companies, auto finance companies, and currency brokerage companies.

(5) Other financial institutions identified and announced by the People's Bank of China.

Institutions engaged in exchange business, payment clearing business, and fund sales business shall report to these Measures for large transactions and suspicious transactions.

Article 3 The People's Bank of China and its branches supervise and inspect the financial institutions' implementation of reports on large transactions and suspicious transactions.

Article 4 The People's Bank of China has established the China Anti-Money Laundering Monitoring and Analysis Center, which is responsible for receiving reports on large-value transactions in RMB and foreign currencies and suspicious transactions.

If the China Anti-Money Laundering Monitoring and Analysis Center finds that the large-volume transaction report or suspicious transaction report submitted by financial institutions has incomplete elements or errors, it may issue a correction notice to the financial institution that submitted the report. The financial institution shall receive five Make corrections within working days.

Article 5 Financial institutions shall set up special anti-money laundering positions, and clarify that special persons shall be responsible for reporting large-value transactions and suspicious transactions.

Financial institutions shall formulate internal management systems and operating procedures for reporting large-value transactions and suspicious transactions in accordance with these Measures, and report to the People's Bank of China.

A financial institution shall supervise and manage the implementation of the reporting system of large-value transactions and suspicious transactions of its subordinate branches.

Article 6 Financial institutions and their staff shall keep confidential the reports of suspicious transactions and shall not provide them to any unit or individual in violation of regulations.

Article 7 A financial institution shall, within five working days after the occurrence of a large transaction, submit its large transaction report electronically to the China Anti-Money Laundering Monitoring and Analysis Center through its headquarters or an institution designated by the headquarters. Where there is no headquarters or it is not possible to report large transactions to the China Anti-Money Laundering Monitoring and Analysis Center through the headquarters and the agencies designated by the headquarters, the reporting method shall be determined separately by the People's Bank of China.

Large transactions that customers make through accounts or bank cards opened with domestic financial institutions are reported by the financial institution that opened the account or the issuing bank; large transactions that customers make through overseas bank cards are reported by the acquirer; customers Large transactions that do not occur through an account or bank card shall be reported by the financial institution handling the business.

Article 8 A financial institution shall report the suspicious transaction to its headquarters. The financial institution headquarters or an institution designated by the headquarters shall electronically report to the China Anti-Money Laundering Monitoring and Analysis Center within 10 working days after the suspicious transaction occurs. Where there is no headquarters or it is impossible to report suspicious transactions to the China Anti-Money Laundering Monitoring and Analysis Center through the headquarters and the agencies designated by the headquarters, the reporting method shall be determined separately by the People's Bank of China.

Article 9 Financial institutions shall report the following large transactions to the China Anti-Money Laundering Monitoring and Analysis Center:

(1) Cash deposit, cash withdrawal, cash settlement and sale, cash exchange, cash remittance, cash bill settlement and other forms in a single or cumulative RMB transaction of over RMB 200,000 or foreign currency transaction equivalent of USD 10,000 or more Cash receipts and payments.

(2) Transfers of bank accounts of legal persons, other organizations, and individual industrial and commercial households in a single transaction or on the day accumulating more than RMB 2 million or a foreign currency equivalent of more than USD 200,000.

(3) Transfers between bank accounts of natural persons, and bank accounts of natural persons and legal persons, other organizations, and individual industrial and commercial households, or accumulative amounts of more than RMB 500,000 or a foreign currency equivalent of more than 100,000 USD on that day.

(4) The party involved in the transaction is a natural person, a single transaction, or a cross-border transaction with a cumulative total of US $ 10,000 or more on the day.

Cumulative transaction amount is based on a single client, and is calculated and reported unilaterally based on the income or expenditure of funds, unless otherwise specified by the People's Bank of China.

Clients conduct financial transactions with securities companies, futures brokerage companies, fund management companies, insurance companies, insurance asset management companies, trust and investment companies, financial asset management companies, financial companies, financial leasing companies, auto finance companies, currency brokerage companies, etc. For bank account transfers, commercial banks, urban credit cooperatives, rural credit cooperatives, postal depository and remittance agencies, and policy banks shall conduct anti-money laundering to China in accordance with the provisions of paragraphs (2), (3), and (4) of paragraph 1. The monitoring and analysis center submitted a large transaction report.

The People's Bank of China may adjust the large-value transaction standards stipulated in the first paragraph as needed.

Article 10 Financial institutions may not report large transactions that meet one of the following conditions if they are not found suspicious:

(1) When the time deposit expires, it is not directly withdrawn or transferred, but the principal or principal plus all or part of the interest is continuously deposited into another account under the same account opened by the same financial institution.

The principal of the demand deposit or the principal plus all or part of the interest is converted into a time deposit in another account under the same account opened by the same financial institution.

The principal of the time deposit or the principal plus all or part of the interest is converted into a demand deposit in another account under the same account opened by the same financial institution.

(2) Conversion between different foreign currencies during the process of real foreign exchange trading by natural persons.

(3) The party involved in the transaction is party organs at all levels, state power organs, administrative organs, judicial organs, military organs, people's political consultative conference organs, the People's Liberation Army, and the Armed Police Force, but it does not include various enterprises and institutions under its jurisdiction.

(4) Inter-bank lending by financial institutions and bond transactions conducted in the inter-bank bond market.

(5) Gold transactions conducted by financial institutions on gold exchanges.

(6) Internal transfer of funds by financial institutions.

(7) Transactions under the loan refinancing business of international financial organizations and foreign governments.

(8) Debt swap transactions under loans from international financial organizations and foreign governments.

(9) Taxes, misreconciliations, and interest payments initiated by commercial banks, urban credit cooperatives, rural credit cooperatives, postal savings and exchange agencies, and policy banks.

(10) Other circumstances determined by the People's Bank of China.

Article 11 Commercial banks, urban credit cooperatives, rural credit cooperatives, postal savings and exchange agencies, policy banks, and trust and investment companies shall report the following transactions or acts as suspicious transactions:

(1) In the short-term, the funds are transferred in or out in a centralized manner, or they are transferred in and out, which is obviously inconsistent with the identity, financial status, and operation of the customer.

(2) In the short-term, frequent fund receipts and payments occur between the same payees, and the transaction amount is close to the standard for large-value transactions.

(3) Legal persons, other organizations, and individual industrial and commercial households frequently receive remittances that are obviously irrelevant to their business operations in the short term, or natural person customers frequently receive remittances from legal persons and other organizations in the short term.

(4) Accounts that have been left unused for a long time are suddenly opened for unknown reasons, or an account with a small flow of funds usually has abnormal fund inflows, and a large amount of funds are received and paid in a short period of time.

(5) Fund exchange activities with customers from drug trafficking, smuggling, terrorist activities, gambling-intensive areas, or tax-offshore offshore financial centers have significantly increased in the short term, or frequent large-scale fund receipts and payments.

(6) There are no long-term account openings and cancellations for normal reasons, and a large amount of fund receipt and payment occurred before the cancellation.

(7) The loan repayment in advance is obviously inconsistent with its financial status.

(8) Most of the RMB funds used by customers to purchase foreign exchange for overseas investment are cash or transferred from non-same bank accounts.

(9) The client requested the swap business between domestic and foreign currencies, and the source and purpose of its funds are suspicious.

(10) Customers often deposit traveler's cheques or foreign currency drafts issued outside the country of entry, which are inconsistent with their business conditions.

(11) Foreign-invested enterprises invest in foreign currency cash or transfer funds to foreign countries within a short period of time after receiving the investment funds, which is inconsistent with their production and operation payment requirements.

(12) The amount of capital invested by the foreign party of a foreign-invested enterprise exceeding the approved amount or borrowed direct foreign debt shall be remitted from a third country with no affiliated enterprises.

(13) The securities operation institution instructs the bank to allocate funds unrelated to securities trading and liquidation, which is inconsistent with its actual operation.

(14) Securities business institutions frequently borrow large amounts of foreign exchange funds through banks.

(15) An insurance institution frequently incurs a large number of compensations or surrenders to the same insured person through the bank.

(16) Frequent cash receipts and payments in natural person bank accounts are suspicious, or large-scale deposits and withdrawals of cash are suspicious.

(17) After a resident natural person frequently receives foreign exchange inbound foreign exchange, he or she is required to issue a traveler's check or money order or a non-resident natural person frequently deposits foreign currency cash and requires the bank to issue a traveler's check or money order or frequently order or cash a large number of travel Checks, money orders.

(18) When multiple domestic residents accept remittances from an offshore account, the transfer and settlement of their funds are performed by one person or a few people.

Article 12 Securities companies, futures brokerage companies and fund management companies shall report the following transactions or actions as suspicious transactions:

(1) Unexplained frequent occurrences of cash receipts and payments close to the standard of large-value cash transactions in customer funds accounts, which obviously evaded monitoring of large-value cash transactions.

(2) Customers who do not have transactions or have a small transaction volume require a large amount of funds to be transferred to other people's accounts, and there is no obvious transaction purpose or purpose.

(3) The client's securities account is left unused for a long period of time, while the capital account frequently receives large amounts of funds.

(4) Accounts that have been idle for a long time are suddenly opened for unknown reasons, and a large number of securities transactions occur in a short period of time.

(5) Having business contacts with countries and regions at high risk for money laundering.

(6) A large number of securities are bought and sold within a short period of time after opening an account, and then the account is quickly sold off.

(7) The client does not conduct futures transactions for a long time or a small amount, but a large amount of funds are received and paid in his fund account.

(8) Clients who have not traded in the futures for a long time suddenly and frequently trade in futures for unknown reasons, and the amount of funds is huge.

(9) If the client frequently uses the same futures contract as the target, while opening a position at one price, at the same time, the same or approximately the same price, the same amount or nearly the same amount is reversed and the position is closed out and the fund is withdrawn.

(10) When the customer, as the seller of the futures transaction, makes the delivery of imported goods, he cannot provide a complete declaration document or tax payment certificate, or provide a fake or altered declaration document or tax payment certificate.

(11) The client requires the non-transaction transfer of fund shares and cannot provide legal certification documents.

(12) Clients frequently handle the trusteeship of fund shares without reasonable reasons.

(13) The client requested to change its information and materials, but the relevant documents and materials provided were suspected of forgery or alteration.

Article 13 An insurance company shall report the following transactions or actions as suspicious transactions:

(1) In the short term, decentralized insurance, centralized surrender or centralized insurance, scattered surrender cannot be reasonably explained.

(2) Frequent insurance, surrender, change of insurance type or insurance amount.

(3) Paying special attention to the auditing, underwriting, claim settlement, payment, and surrender regulations of insurance companies, but not the protection functions and investment income of insurance products.

(4) If the large amount of invoices are lost when hesitating to withdraw from the insurance policy, or if the same policyholder has repeatedly withdrawn within a short period of time, the total amount of the lost invoices has reached a large amount.

(5) It is found that the information obtained about the names, names, domiciles, contact details or financial status of the insured, insured and beneficiaries is not true.

(6) The purchased insurance products are clearly inconsistent with the requirements expressed, and after the financial institution and its staff explain, they still insist on purchasing.

(7) Purchasing a large amount of insurance by way of settlement, which is inconsistent with its economic status.

(8) Withdrawing from a large premium insurance policy with a hesitation period, withdrawing the insurance or withdrawing cash value shortly after the effective date of the insurance contract, and requesting the surrender money to be transferred to a third-party account or a non-payment account.

(9) Not paying attention to the large monetary loss that may be caused by surrender, and resolutely requesting surrender, and cannot reasonably explain the reason for surrender.

(10) Obviously pay the insurance premium payable for the current period in excess and immediately request to return the excess.

(11) The insurance broker pays premiums on his behalf, but cannot explain the source of funds.

(12) A legal person or other organization insists that the premium be refunded in cash or transferred to a non-payment account, and the reason cannot be reasonably explained.

(13) The legal person or other organization's initial premium or premium payment shall be paid from a non-unit account or from an overseas bank account.

(14) Paying natural person insurance premiums through a third party without reasonably explaining the relationship between the third party and the insured, the insured and the beneficiary.

(15) Business contacts with countries and regions at high risk for money laundering.

(16) If there is no reasonable reason, the policyholder insists on using cash for insurance, compensation, payment of insurance premiums, refund of insurance premiums and cash value of the policy, and payment of other funds with large amounts.

(17) When an insurance company pays compensation or insurance benefits, the client requests remittance of funds to a third party other than the insured or beneficiary; or the client requests remittance of the refunded insurance premiums and the cash value of the policy outside the policyholder Others.

Article 14 Except for the circumstances specified in Articles 11, 12, and 13 of these Measures, financial institutions and their staff members have found abnormalities in the amount, frequency, flow, and nature of other transactions, and upon analysis, they are suspected of being involved in money laundering. , A suspicious transaction report shall be submitted to the China Anti-Money Laundering Monitoring and Analysis Center.

Article 15 Financial institutions shall analyze and identify all transactions involved in suspicious transaction reports submitted to the China Anti-Money Laundering Monitoring and Analysis Center in accordance with these measures, and shall have reasonable grounds to believe that the transaction or the customer and money laundering, terrorist activities and other illegal activities Criminal activities shall be reported to the local branch of the People s Bank of China at the same time and shall cooperate with the People s Bank of China s anti-money laundering administrative investigation.

Article 16 For transactions that are both large-value transactions and suspicious transactions, financial institutions shall submit large-value transaction reports and suspicious transaction reports separately.

If a transaction meets two or more large-value transaction standards at the same time, the financial institution shall submit a large-value transaction report separately.

Article 17 Financial institutions shall provide true, complete, and accurate transaction information in accordance with the requirements for large-value transactions and suspicious transaction reports attached to these measures (for the content of the elements, see the attached table) to produce large-value transaction reports and suspicious transaction reports. Electronic document. The specific report format and filing requirements shall be separately stipulated by the People's Bank of China.

Article 18 Any financial institution that violates these measures shall be punished by the People s Bank of China in accordance with Articles 31 and 32 of the Anti-Money Laundering Law of the People s Republic of China; The Commission, China Securities Regulatory Commission or China Insurance Regulatory Commission has adopted the following measures:

(1) Order financial institutions to suspend business for rectification or revoke their business licenses.

(2) Cancel the qualifications of directors, senior managers and other directly responsible persons of financial institutions, and prohibit them from engaging in related financial industry work.

(3) Order financial institutions to impose disciplinary sanctions on directly responsible directors, senior management personnel and other directly responsible personnel.

If the county (city) branch of the People's Bank of China finds that a financial institution violates these Measures, it shall report its branch office at a higher level, and the branch office shall punish or make suggestions in accordance with the provisions of the preceding paragraph.

Article 19 Where the People's Bank of China and its branches above the central city branch give administrative penalties for violations of these Measures by financial institutions, they shall abide by the relevant provisions of the "Procedures for Administrative Penalties of the People's Bank of China".

Article 20 The meanings of the following terms in these Measures are as follows:

"Short-term" means within 10 working days, including 10 working days.

"Long term" means more than one year.

"Large amount" means that the transaction amount is single or cumulatively lower than but close to the standard for large amount transactions.

"Frequent" means that the transaction occurs more than 3 times a day on the business day, or more than 3 days per day on the business day.

"Above" includes the number.

Article 21 These Measures shall be implemented as of March 1, 2007. "Administrative Measures for Reporting Large RMB and Suspicious Payment Transactions in Renminbi" issued by the People's Bank of China on January 3, 2003 (People's Bank of China Order [2003] No. 2) and "Administrative Measures for Reporting Large and Suspicious Foreign Exchange Fund Transactions in Financial Institutions" (People's Bank of China Order [2003] No. 3) Repealed simultaneously.