Law on Anti-Money Laundering
According to Article 17 of the AML Law, if a financial institution certifies the identity of its client through a third party, it shall be assured that the third party has adopted measures for clients’ identity clarification as prescribed by the AML Law.
These measures include that identity certification documents will be required from clients and any relevant agents or beneficiaries, and that such documents should be registered and verified, when:
- any financial institution establishes business relationship with a client or provides one-off financial services such as cash remittance, cash conversion and bill payment beyond the prescribed amount;
- a client entrusts an agent to deal with the transaction on its/their behalf; and
- a financial institution establishes a business relationship of personal insurance or trust with his client. (Article 16 of the AML Law)
In addition, the AML Law provides that:
- financial institutions may not provide any service to or make any trade with any client who fails to clarify his identity or establish any anonymous or pseudonymous account; and
- if a financial institution has any doubt about the authenticity, effectiveness or integrity of a client’s identity material, it shall check the client’s identity again.
Article 21 of the AML Law stipulates that the specific measures for a financial institution to establish a clients’ identity clarification system and a preservation system for its clients’ identity materials and transactional records, shall be formulated by the competent department for anti-money laundering of the State Council in conjunction with the related financial supervision and administration institution under the State Council.
In case any third party fails to adopt the measures for the clients’ identity clarification as prescribed by the AML Law, the financial institution shall bear the liabilities for its failure to fulfil the obligation of clarifying the client’s identity (Article 17 of the AML Law).
How OneTrust Helps
OneTrust Vendorpedia simplifies third-party risk management by combining automation with aggregated vendor research to streamline the vendor engagement lifecycle, from onboarding to offboarding. The platform helps organizations conduct faster and more in-depth security and privacy reviews.
Vendorpedia is backed by the world’s largest and most up-to-date database of privacy and security laws, frameworks, and standards, which directly power and enrich OneTrust Vendorpedia. Research is generated by 30 in-house security and privacy experts and a network of 500 lawyers across 300 jurisdictions.
For additional details on Vendorpedia, read more here.
Law on Anti-Money Laundering
The Law of the People‘s Republic of China on Anti-Money Laundering, promulgated on 31 October 2006 (‘the AML Law‘) establishes anti-money laundering (‘AML‘) obligations for financial institutions, as well as specific non-financial institutions involved in relevant practices. In particular, the AML Law stipulates requirements for prevention and supervision measures relating to, among other things, client identification processes, transactional records, and reporting to relevant authorities.
Last Updated: July 30, 2019
OneTrust is the #1 most widely used privacy, security and third-party risk technology platform trusted by more than 3,000 companies to comply with the CCPA, GDPR, ISO27001 and hundreds of the world’s privacy and security laws. OneTrust's three primary offerings include OneTrust Privacy Management Software, OneTrust PreferenceChoice™ consent and preference management software, and OneTrust Vendorpedia™ third-party risk management software and vendor risk exchange. To learn more, visit OneTrust.com or connect on LinkedIn, Twitter and Facebook.