September 6, 2024 – Beijing – The Bank of China has been fined for failing to strengthen the management of non-cash transfers, according to a recent administrative penalty notice issued by the People’s Bank of China Binzhou Branch.
The notice states that the Bank of China Binzhou Shengbin Branch and the Bank of China Boxing Branch were each fined 50,000 yuan for not adhering to regulations on strengthening non-cash transfer management.
In recent years, financial regulatory authorities have consistently required commercial banks and other financial institutions to strengthen the management of account real-name registration and non-cash transfers to prevent telecommunications network-based and other types of financial crimes. For instance, in 2016, the People’s Bank of China issued a notice to strengthen payment settlement management and prevent telecommunications network-based financial crimes, calling for enhanced transfer management to block the illegal transfer of large sums of money by criminal elements.
Compared to face-to-face operations at bank counters, non-cash channels such as online banking, mobile banking, telephone banking, and payment institution websites are more difficult to verify the actual operator of the account, as they cannot be physically identified. According to police reports, after fraudsters succeed in their scams, they often transfer large amounts of赃款 through non-cash transfer methods to quickly split and transfer funds across different regions and even across borders.
Although banks can timely detect abnormal transfer transactions under anti-money laundering regulations, they lack the corresponding measures to block such transactions in advance.
Since last year, many banks across the country have released relevant announcements, indicating that they have reduced the transaction limits for some customers through non-cash channels. The criteria for adjustment vary among different banks. Some specify that the adjustment applies to I-type accounts that have not been used for more than six months, while others indicate that it applies to accounts where the online banking limit is significantly different from the account transaction flow.
The reasons for the adjustment are similar among various banks. Some explain in their announcements that reducing the transaction limits for non-cash channels is a requirement for strengthening the打击 on telecommunications network fraud and other criminal activities, as well as a necessary measure to prevent losses due to fraud. Strengthening the management of personal bank accounts helps reduce the risk of customer funds being lost. Other banks state that strengthening non-cash transfer management is also to implement the regulatory requirements for the classified and graded management of personal bank accounts.
In fact, since December 1, 2016, individuals have been allowed to open only one type I account in the same bank.
For this, some users have shown understanding, believing that the adjustment of non-cash payment limits for bank accounts is mainly based on the need to prevent telecommunications network fraud and money laundering. Banks use system models to monitor the payment and transfer status of accounts in real time, and it is necessary to trigger the limit adjustment mechanism for accounts with abnormal conditions, which helps reduce the risk of customer property losses.
However, some users also expressed concerns that the non-cash transfer limits for bank accounts have indeed brought about various inconveniences. If the non-cash limit cannot meet the customer’s needs, customers can bring their valid ID cards, bank cards, and other proof materials to the bank’s service outlets to apply for a limit adjustment.
This incident highlights the ongoing efforts by Chinese authorities to strengthen financial security and prevent financial crimes. The fine imposed on the Bank of China serves as a reminder to financial institutions to adhere to regulations and ensure the safety and integrity of the financial system.
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