A gold shop Photo: VCG
Starting Friday, any single or cumulative daily cash transaction for purchasing precious metals and gemstones, including gold and diamonds, valued at 100,000 yuan ($13,934) or more, or the equivalent in foreign currency, should be reported to the China Anti-Money Laundering Monitoring and Analysis Center within five business days.
The implementation aligns with new anti-money laundering and counter-terrorism financing regulations issued by the People’s Bank of China, the central bank, specifically targeting dealers of precious metals and gemstones operating in the country.
The measures aim to prevent money laundering and terrorism financing activities, curb related crimes, as well as strengthen and regulate efforts of institutions dealing in precious metals and gemstones, for anti-money laundering and combating the financing of terrorism, according to a previous notice issued by the central bank.
For individual or daily cumulative cash transactions exceeding 100,000 yuan or the equivalent in foreign currency, institutions shall adhere to the “Know Your Customer” principle, and conduct customer due diligence based on the customer’s profile, the nature of the transaction, and the money-laundering risks, according to the notice.
The notice noted that precious metals include gold, silver, and platinum, while gemstones include diamonds and jade.
The price of gold in China has seen a notable increase this year, with both spot prices and futures contracts on the Shanghai Gold Exchange hitting an all-time high in April, highlighting strong market demand, Xinhua News Agency reported.
Global Times