The third revision of the Anti-Money Laundering Law clarifies that financial institutions can refuse to handle business in high-risk money laundering
On November 4th, according to China News Network, the revised draft of the Anti-Money Laundering Law was submitted for the third review by the Standing Committee of the 14th National People's Congress. The third draft of the draft further clarifies the conditions for financial institutions to take anti-money laundering risk management measures to avoid affecting customers' normal financial activities.
The third draft of the draft stipulates that if the transactions conducted by customers are inconsistent with the customer's identity and risk status held by the financial institution, further verification of the customer and related transaction information should be carried out. For high-risk money laundering situations, necessary risk management measures such as restricting transaction methods, amounts or frequencies, restricting business types, refusing to handle business, and terminating business relationships can be taken.
At the same time, the third draft of the draft improves the objection handling mechanism for anti-money laundering risk management measures and adds provisions regarding objections involving basic and necessary financial services for customers, which financial institutions should handle in a timely manner. In addition, the third draft of the draft respectively stipulates legal responsibilities for units and individuals who fail to take special anti-money laundering prevention measures in accordance with regulations, and specifies corresponding legal responsibilities for specific non-financial institutions and related practitioners.
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