Laws of the People's Republic of China

People's Bank of China

Circular of the People's Bank of China on Guarding against Money Laundry by Making Use of Fake US Bills

Yin Fa [2006] No. 60

March 6, 2006

Shanghai Headquarters of the People's Bank of China, all the branches and business management departments of the People's Bank of China, the central sub-branches of the capital cities of all provinces, Dalian, Qingdao, Ningbo, Xiamen and Shenzhen Central Sub-branches, all the wholly state-owned commercial banks, joint stock commercial banks, and China Postal Savings and Remittance Bureau,

A kind of fake US bills, which are called "super US bills" by the judicial department of U.S.A. and are manufactured verisimilar and fraudulent, has aroused the attention of international society in recent years. This kind of fake US bills have been introduced into our country from abroad, and the criminals are trying to carry out money laundry by making use of fake US bills by smuggling, trafficking and other means.

With a view to maintaining economic and financial safety, preventing financial institutions from being utilized by criminals to carry out money laundry, safeguarding the capital security of financial institutions and severely striking money laundry concerning the manufacturing and trafficking of fake US bills, the Circular on the relevant working requirements is hereby issued as follows:

I.

All the financial institutions shall reinforce the precautious consciousness against the crime of money laundry by making use of fake US bills, and improve their employees' abilities to identify fake US bills in the receipt and payment of currencies by means of various trainings and education.

II.

All the financial institutions shall practically strengthen the construction of the internal control mechanism against money laundry, implement the requirements of regulation compliance, strictly perform such obligations to strike money laundry as the identification of clients' statuses and the keeping of trading records, etc. Any transaction of US bills in large-amount shall be reported strictly in accordance with the relevant provisions of the People's Bank of China on anti-money laundry.

III.

All the financial institutions shall strengthen the daily audit and monitoring of the incomes and expenses of US bills, and shall conduct thorough analysis and research to any abnormal condition on the incomes and expenses of US bills, and in case any suspectable transaction is found, a report shall be made according to the relevant provisions of the People's Bank of China on anti-money laundry.

IV.

All the branches of the People's Bank of China shall strengthen the monitoring and analysis of large-amount and suspectable transactions of US bills, and shall also report the information relevant to fake US bills or the clues of money laundry found in the daily monitoring, investigation of cases or striking of underground banks to the Currency, Gold and Silver Bureau and Anti-Money Laundering Bureau of the People's Bank of China in addition to the reporting in accordance with the normal procedures prescribed in the relevant provisions thereof.

Shanghai Headquarters of the People's Bank of China, all the branches and business management departments of the People's Bank of China, the central sub-branches of the capital cities of all the provinces (capital) and the central sub-branches of the deputy provincial cities are requested to forward this Circular to the urban commercial banks, rural commercial banks, rural credit cooperatives and foreign-funded banks within their respective jurisdictions.