PBOC Steps Up Money Laundering Battle With New Know-Your-Customer Rules

China is tightening oversight of financial institutions with new regulations on know your customer (KYC) requirements as part of a broader campaign to stamp out money laundering and terrorist financing.

Institutions will need to step up their due diligence, identifying the ultimate beneficiary of the accounts they open and maintain for all customers — individuals, companies and other entities — and monitoring all transactions, according to draft revisions (link in Chinese) of 2007 rules jointly released on Wednesday by the People’s Bank of China (PBOC), the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission.