Name: Guidelines on Anti-money Laundering for the Members of the Securities Association of China (中国证券业协会会员反洗钱工作指引, the “Guidelines”)
Issuing authority: Securities Association of China (“SAC”)
Effective date: 21 April 2008
Subject: Anti-money laundering
Further to the PRC Anti-money Laundering Law, the Provisions on Anti-money Laundering by Financial Institutions, the Administrative Measures on the Reporting of Large and Suspicious Transactions by Financial Institutions (the “Reporting Measures”) and the Measures for the Administration of Client Identification and Retention of Client Identification Materials and Trading Records for Financial Institutions, the Guidelines were issued by the SAC to further strengthen and safeguard the internal control system for anti-money laundering for SAC members. The Guidelines stipulate detailed provisions for the verification of client identification, reporting of large and suspicious transactions, retention and confidentiality of information and materials of clients and transaction records, staff training, and inspection and supervision regarding anti-money laundering.
Highlights
- The Guidelines apply to securities company members and fund management company members of the SAC.
- Each SAC member is required to establish a special internal anti-money laundering department or designate an existing internal department to be responsible for anti-money laundering matters. Such department must perform the duties, such as formulating anti-money laundering rules and procedures and reporting or procuring other departments to report large and suspicious transactions, as specified by the Guidelines.
- The Guidelines require that SAC members verify the identification of clients when conducting certain businesses, such as the opening, closing and change of accounts, change of transaction password, and change of the client’s basic information. The verification of client identification should be conducted on an on-going basis during the course of the businesses.
- SAC members are required by the Guidelines to implement strict verification measures and reliable technical measures to verify the identification of clients when providing non-counter transactional services via telephone, mobile phone, the Internet or other means.
- The Guidelines stipulate that reporting to the China Anti-money Laundering Monitoring and Analyzing Center of a large transaction (as defined in the Reporting Measures) must be made within five working days after the occurrence of the same and reporting of a suspicious transaction (as defined in the Reporting Measures and the Guidelines) must be made within ten working days after the occurrence of the same.
Please contact Zili Shao ( zili.shao@linklaters.com tel: +86 21 2891 1868) or Fang Jian ( jian.fang@linklaters.com tel: +86 21 2891 1858) if you would like further details.
