PBOC asks banks to offer “simple” account opening


Banks are encouraged to relax documentary requirements and provide straightforward personal account opening services, using external data to verify customer identities.

The People’s Bank of China (PBOC) has released new guidelines for commercial banks to address the difficulties customers face when opening accounts due to stricter risk management and auditing standards. identity in banks.

While the improved standards were needed to tackle cross-border gambling fraud and crime, the PBOC says some banks have adopted “one-size-fits-all” identity verification requirements for customers that are “unreasonable or beyond reasonable. necessary limits ”, causing inconvenience to customers.

The guidelines order banks to use existing bank accounts opened by individuals to pay interbank wages, rather than forcing them to open new accounts due to job changes, education and relocation.

Banks are also invited to optimize the process of opening personal bank accounts by improving customer identification methods, according to the “risk-based” principle.

Banks should provide “simple personal account opening services”, using external data to verify customer identities, and relax the requirements for customers to submit certification documents, according to the guidelines. Banks that refuse to open an account “will be reviewed”.

The PBOC says some banks have already implemented hierarchical and classified management of bank accounts, offering services to clients based on the risks associated with their profession, age, transaction needs and other characteristics.

Banks should provide account functions that match the risk level of the customer – this should be taken into account when setting transaction limits and verification methods for mobile and online banking, and complemented by monitoring high value transfers that exceed their normal payment and fund settlement requirements, says the PBOC.

The guidelines also propose the establishment of an “interbank risk oversight mechanism” as well as an account classification system to indicate risk, which the PBOC says will strengthen oversight and facilitate the interception of funds related to fraud and games of chance, while facilitating account opening.

The guidelines are published here.

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