China Implements New Reporting Requirement for Cash Purchases of Gold and Jewelry Exceeding 100,000 Yuan

On July 2, 2025, the People's Bank of China (PBOC) announced the issuance of the "Administrative Measures for Anti-Money Laundering and Counter-Terrorism Financing in the Precious Metals and Gemstones Industry." This regulation specifically targets cash transactions of 100,000 yuan (RMB) or more, or equivalent foreign currency, involving precious metals such as gold, silver, platinum, and their refined or intermediate products, as well as gemstones including diamonds and jade in raw or jewelry forms. Beginning August 1, 2025, institutions engaged in the precious metals and gemstones trade—such as members of the Shanghai Gold Exchange, China Gold Association, China Jewelry and Jade Industry Association, and Shanghai Diamond Exchange—must fulfill enhanced anti-money laundering (AML) obligations.

These obligations include conducting customer due diligence measures based on the "know your customer" principle, considering the clients’ characteristics and transaction natures to assess money laundering risks. Specifically, any single or cumulative daily cash transaction equal to or exceeding 100,000 yuan must be reported to the China Anti-Money Laundering Monitoring and Analysis Center within five working days from the transaction date. The regulation also mandates that suspicious transactions, regardless of amount, be promptly reported and customer identity and transaction records be retained for no less than 10 years.

The PBOC underscored that due to the typical large transaction amounts and high cash volumes in precious metals trading, the sector is internationally recognized as high risk for money laundering and terrorism financing. The regulation introduces a systematized supervisory framework that requires institutions to establish sound internal AML controls, assign responsible personnel, and periodically assess and mitigate money laundering risk with the maximum evaluation period set at three years. For high-risk institutions, intensified regulatory measures apply, whereas low-risk institutions may receive simplified or exempt supervision.

Moreover, specific preventive actions are mandated against entities listed as terrorist organizations or under United Nations sanctions, requiring immediate cessation of services and fund transfer restrictions. Group institutions must coordinate AML efforts, with overseas branches complying based on local laws. The PBOC also emphasizes preserving confidentiality of AML investigation information while strengthening industry self-discipline and imposing penalties for non-compliance, including referral to judicial authorities in severe cases.

This comprehensive framework demonstrates China’s commitment to combating financial crimes, mitigating systemic risks in high-risk sectors, and enhancing the transparency and integrity of precious metals and gemstones markets within the jurisdiction.