Alipay, WeChat Pay and other transactions above 50,000 yuan must be reported

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Starting from January 1, individual transactions of more than 50,000 yuan and transfers of more than 200,000 yuan may be subject to large-value suspicious monitoring. According to the "Notice on the Requirements for Non-Bank Payment Institutions to Carry Out Large-Value Transaction Reporting" (hereinafter referred to as the "Notice") previously issued by the central bank, non-bank payment institutions should submit large-value transaction reports starting from January 1, 2019.

Payment institutions are required to report large transactions

The "Notice" requires that four types of transactions conducted by non-bank third-party payment institutions must be reported, including cash receipts and payments of RMB 50,000 (including RMB 50,000) or the equivalent of USD 10,000 (including USD 10,000) in a single transaction or cumulative transactions on the same day; transfers of funds between non-natural person customer payment accounts and other accounts of RMB 2 million (including RMB 2 million) or the equivalent of USD 200,000 (including USD 200,000) in a single transaction or cumulative transactions on the same day; domestic transfers of funds between natural person customer payment accounts and other accounts of RMB 500,000 (including RMB 500,000) or the equivalent of USD 100,000 (including USD 100,000) in a single transaction or cumulative transactions on the same day; cross-border transfers of funds between natural person customer payment accounts and other bank accounts of RMB 200,000 (including RMB 200,000) or the equivalent of USD 10,000 (including USD 10,000) in a single transaction or cumulative transactions on the same day.

This means that from now on, if an individual uses Alipay or WeChat to shop for more than 50,000 yuan or transfers more than 200,000 yuan, they may be listed as large-scale suspicious transactions and be monitored.

The new regulations are mainly aimed at preventing money laundering and illegal financing. The normal transactions and business handling of enterprises and individuals will not be affected, and the annual foreign exchange purchase facilitation quota for domestic individuals will remain unchanged. In addition, the new regulations are mainly regulations and requirements for institutions, and do not require enterprises and individuals to fulfill reporting obligations. As long as normal transactions are carried out, there will be basically no perception.

In addition, since most people use common third-party payment institutions such as Alipay and WeChat for small transactions, most people's accounts are difficult to meet the reporting standards.

The central bank has previously required banks and other financial institutions to report large transactions and also to submit suspicious transaction reports.

In addition, the new anti-money laundering regulations for Internet financial institutions also require large-value transaction monitoring. According to the "Internet Financial Institutions Anti-Money Laundering and Anti-Terrorist Financing Management Measures (Trial)" jointly issued by the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission and implemented yesterday, the basic obligations of Internet financial institutions in anti-money laundering and anti-terrorist financing work include establishing and improving internal control mechanisms for anti-money laundering and anti-terrorist financing, effectively identifying customer identities, and submitting large-value and suspicious transaction reports.