The People’s Bank of China (“Central Bank”) has revamped the country’s anti-money laundering rules governing financial institutions, including insurers. The new anti-money laundering rules (“New Rules”) have not been made public but have been provided directly to the relevant insurers and banks, who must implement them by December 2015.

The media has reported that under the existing rules there have been eight million reports in a two year period and that the New Rules are designed to force financial institutions to exercise discretion.  

Under the New Rules, instead of simply making a report of potential money laundering, financial institutions will be required to score their customers’ risk profiles according to their geography, characteristics, business and industry from 0-100, and rate the perceived risk level from 1-5 when making a report.