Refer China: One More Step Required for Overseas Transfers Over ¥5000/$1000

New regulations will take effect on January 1, 2026.

ID Verification Required for Overseas Transfers Over ¥5,000/$1,000 - New Rules

On November 28, 2025, the People's Bank of China (PBOC) announced on its official website that the Measures for the Administration of Customer Due Diligence and the Preservation of Customer Identity Information and Transaction Records by Financial Institutions were approved during its 14th executive meeting on October 11, 2025.

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With the concurrence of the National Financial Regulatory Administration and the China Securities Regulatory Commission, the new regulations will take effect on January 1, 2026.

The new measures reinforce the "Know Your Customer" (KYC) principle, requiring financial institutions to diligently identify and verify the identities of clients and their beneficial owners. The depth of due diligence must correspond to the nature, scale, and risk profile of the customer and their transactions.

Financial institutions are required to continuously monitor customer relationships, evaluate overall client profiles, and detect potential money laundering or terrorist financing risks.

In high-risk cases, enhanced due diligence and proportionate risk management strategies must be implemented, which may include limiting transaction types, frequency, or scale. If risks exceed a financial institution's risk tolerance, it must refuse to provide services or terminate existing relationships.

Importantly, institutions are prohibited from unlawfully freezing customer funds or applying disproportionately severe measures. Basic financial services for healthcare, social security, and utilities must remain protected.

When facilitating cross-border remittances, institutions must retain and transmit the sender and recipient's full identifying information—including name, account number, and address—ensuring transparency and traceability.

For remittances exceeding 5,000 yuan or an equivalent of 1,000 USD, sender identity verification becomes mandatory.

Additionally, intermediary institutions in cross-border remittance chains are obligated to fully transmit all sender and recipient details. They must identify missing information and determine whether to process, reject, or suspend such transactions based on risk assessments.

Source: 北京商报