Cash Transactions Over RMB 100,000 in Precious Metals and Gems Must Be Reported from August 1

On July 2, the People’s Bank of China officially issued the Administrative Measures on Anti-Money Laundering and Counter-Terrorist Financing for Institutions Engaged in Precious Metals and Gems (referred to hereafter as the “Measures”), as reported. These rules mandate that institutions must report to the China Anti-Money Laundering Monitoring and Analysis Center within five working days for any cash transaction—whether single or cumulative on the same day—totaling RMB 100,000 or more, or its foreign currency equivalent. The Measures are scheduled to come into effect on August 1.

Compared to the 2017 directive, which required reporting for cash transactions of RMB 50,000 or USD 10,000 equivalent in one day, the new framework increases the threshold by RMB 50,000.
Institutions are further obligated to comply with “know your customer” protocols and undertake due diligence in line with customer profiles, transactional behavior, and assessed money laundering risks. This applies particularly when transactions meet or exceed RMB 100,000, when there is reasonable suspicion of illicit activity, or if the credibility or completeness of customer identification is in doubt.

Within the scope of the Measures, “precious metals” are defined to include gold, silver, platinum and associated coins, bullion, finished goods, intermediary products, and refined materials. “Gems” encompass diamonds, jade, and other natural stones in raw or crafted jewelry forms.

Designated trading platforms covered under the Measures include officially approved centralized markets such as the Shanghai Gold Exchange and Shanghai Diamond Exchange. The Measures also reference national and regional industry groups including the China Gold Association and the Gems & Jewelry Trade Association of China in regulatory and oversight roles.

According to Guangzhou Daily, Wang Pengbo, Chief Analyst at Botong Consulting, explained that the precious metals sector has long been flagged as high-risk internationally due to its large transaction volumes and strong liquidity. As laundering techniques grow increasingly subtle and complex, conventional oversight is proving insufficient. The introduction of focused and comprehensive industry-specific regulations signals regulatory agencies’ heightened commitment to tackling financial crime and maintaining the integrity of the financial system.