China AML Reform Proposes Easing Cash Transaction Reporting Rules

China’s financial regulators have proposed a China AML reform to remove the requirement for individuals to declare the source or purpose of single cash deposits or withdrawals above RMB50,000 (USD6,900), moving toward a risk-based anti-money laundering regime. The draft rule, issued by the central bank, the National Financial Regulatory Administration and the securities watchdog, drops the blanket reporting requirement introduced in 2022 but never enforced, while tightening oversight of high-risk transactions. It calls for enhanced due diligence in sensitive cases, including monitoring high-risk groups and regions, and continues to require declarations for large cash remittances and purchases of precious metals. Financial institutions will still need to record customer details and retain identification copies for such transactions.