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‘Technical glitches’ delay China’s reforms to cash withdrawals/deposits

‘Technical glitches’ delay China’s reforms to cash withdrawals/deposits


China’s central bank has blamed ‘technical reasons’ for its decision to delay implementing new rules that would ensure financial institutions verify a client’s identity and manage their transaction records.

Originally set to come into effect on 1 March, the regulation required individuals to disclose the source and purpose of a cash withdrawal or deposit on a single transaction of 50,000 yuan ($7,892) or more, according to the National Business Daily.

In a statement the People’s Bank of China (PBC) said financial institutions needed to review their internal management mechanisms, information systems and business procedures, while training staff so that they understood their responsibilities when dealing with the various financial products governed by the regulations.

The purpose of the regulation was to prevent and criminal activity, including money laundering, and to protect the people’s money, the PBC said when it announced the proposals.

Illegal and criminal activities, like telecommunications fraud, illegal fundraising and cross-border gambling, has increased across China in recent years. In 2021 alone, the public security agencies investigated and handled more than 370,000 telecom fraud cases, according to data from the Ministry of Public Security.


Chinese people demand tougher sanctions for online fraudsters

The government should be handing out tougher punishments to online fraudsters, according to a senior legislator.

Yue Zhongming, spokesman for the National People’s Congress’ Standing Committee’s Legislative Affairs Commission, said members of the public wanted a clampdown on internet criminals. Having been asked to respond to a draft version of an anti-telecom and online fraud proposal, some 13,441 people made a total of 28,599 suggestions, between October 23 and November 21 2021.

“This demonstrates the public’s interest in this legal document, as well as their concern over telecom and online fraud,” he said.

“Many people supported us in devising the law, saying that such legislation is both urgent and necessary,” he said, adding that the main suggestions included calling for lawmakers to increase punishments for fraudsters, including those selling fraudulent devices.

“They also suggested that banks and online enterprises provide more fraud-alert information and offer rewards to encourage people to report suspected cases,” he said. “Additionally, they suggested that the country set up a system or take measures to help those who have suffered from telecom and online fraud, to diminish their financial losses as much as possible.”

He added that lawmakers had studied all the suggestions made about the draft, and some are expected to be accepted in the next version of the proposal.