China develops a program to keep large transactions in check

The People’s Bank of China kicked off a pilot plan in Hebei province that would require retail and business clients to pre-report any large withdrawals or deposits, according to Bloomberg. The two-year program will be expanded to Zhejiang and Shenzhen in October 2020, encompassing more than 70 million people. The plan will require businesses to provide information on transactions exceeding USD 71.000.

While the statement didn’t say banks can reject a transaction exceeding the amount, lenders will need to submit reports, mark risks, and follow up on customers that come from high-risk sectors or those make frequent transactions or deviate from past behaviour.