On May 25, the People’s Bank of China released the notice about stricter supervision on opening account. According to the notice, banks, financial organizations and payment organizations are required to have stricter supervision on illegal opening account. They also have the right to refuse the application of opening account for customers who cannot provide proof of identity.
The People’s Bank of China said that in recent years, criminals opened accounts to commit telecom fraud, illegal fund raising, corruption and money washing. Banks should be blamed for having easy access for any customers to open accounts. Most banks failed to control the asset and money involved in the suspicious accounts after a report has been submitted to the bank.
According to the notice, the right of the bank to refuse opening accounts for customers has been widened. The process of background check of the customers includes ID card check, investigation by clerks, paying return visit, onsite investigation, utility bills verification and other ways to identify the customers.
The People’s Bank of China also requires all financial organizations to be stricter on dealing with suspicious transfer and develop new way to control financial crimes.