Southeast Asia Information Port News (www.dnyxxg.com) On November 28, 2025, the People's Bank of China officially released the "Administrative Measures for Customer Due Diligence and Preservation of Customer Identity Information and Transaction Records by Financial Institutions" (hereinafter referred to as the "Measures"). The Measures emphasize that financial institutions should conduct customer due diligence based on risk, striking a balance between money laundering risk prevention and control and optimizing financial services. Notably, the requirement to register the source of funds for personal cash deposits and withdrawals exceeding 50,000 yuan has been removed, consistent with the previous draft for comments, demonstrating a principle of "strict where necessary, relaxed where appropriate." The Measures will take effect on January 1, 2026.
The removal of the requirement to register the source of funds for personal cash deposits and withdrawals exceeding 50,000 yuan has attracted widespread attention and discussion. Many people's first reaction is that withdrawing money will be more convenient and the procedures simpler. However, it is important to emphasize that the optimization of the new regulations does not reduce the due diligence and fund security responsibilities of financial institutions, but rather imposes more refined and scientific requirements on their risk management and financial services.
Financial security is an important component of national security. To prevent and curb money laundering, terrorist financing, and other illegal activities, maintain financial order, and protect the property of the public, it is essential and crucial for financial institutions to conduct due diligence on customers and retain relevant identity information and transaction records. These measures act as a safety valve, effectively identifying and intercepting suspicious and illicit funds, preventing the financial system from being exploited by criminals, and avoiding losses to bank customers' funds.
However, many people find the banks' probing investigations extremely annoying. Whether it's depositing, withdrawing, or transferring funds, once a certain amount is involved, customers face a barrage of questions from bank staff about the source and purpose of the funds. Some customers find these investigations inconvenient and have a poor customer experience; some have even taken legal action due to dissatisfaction with the banks' questioning methods. The core of these conflicts lies in the fact that the past "one-size-fits-all" investigation methods of banks failed to effectively differentiate between high and low risk levels, causing some low-risk, legitimate customers to bear unnecessary compliance costs.
According to the new "Management Measures," banks will no longer indiscriminately question all withdrawers. However, this does not mean banks can relax their management, nor does it mean that customer funds are less secure. On the contrary, the new regulations impose more precise and professional requirements on banks' due diligence work. Banks should focus their limited management resources on genuine risk points. In simple terms, banks need to "tailor their approach"—for customers assessed as low-risk and for routine transactions, the investigation and registration process will be significantly simplified, resulting in a more seamless and better customer experience; while for customers exhibiting abnormal transaction behavior or belonging to high-risk areas, banks will not only ask more questions but must also initiate "enhanced due diligence" to gain a deeper understanding of the source and destination of funds, and take management measures commensurate with the risk if necessary.
These differentiated investigation and management measures, while seemingly easing restrictions on customers, actually strengthen banks' risk control capabilities. Article 9 of the "Management Measures" clearly states that when handling cash remittances and currency exchange transactions exceeding RMB 50,000, banks must conduct customer due diligence, register basic customer identity information, and retain necessary identity verification documents. Clearly, the requirements for these basic investigation and registration procedures have not been relaxed. However, banks can no longer rely on simple monetary thresholds to mechanically conduct due diligence. They must establish a more sensitive and dynamic risk assessment system, comprehensively utilizing multi-dimensional information such as customer identity, transaction history, and behavioral patterns to accurately identify and anchor potential risks.
Currently, money laundering, telecommunications fraud, and online gambling remain rampant, with increasingly sophisticated and covert methods. Under these circumstances, banks' due diligence practices should not be weakened but rather further standardized and optimized. Banks must find a balance between ensuring fund security and providing customer convenience. On the one hand, they must enhance their technological capabilities, utilizing big data and artificial intelligence to improve the accuracy of risk identification; on the other hand, they must adhere to the boundaries of management and service, avoiding unnecessary questions and ensuring that necessary questions are asked clearly and thoroughly, making customers feel respected and valued.
Financial security concerns everyone's wallet, and banks' due diligence concerns the rights and interests of their customers. Therefore, customers should also bear a responsibility, offering more understanding and cooperation, and exercising more patience.
