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Regulations for Anti-Money Laundering (AML) in China Expand to Cover Precious Metals Industry

Strict Anti-Money Laundering regulations imposed by the PBoC on China's precious metals sector, featuring a heightened reporting limit.

China Imposes Strict Anti-Money Laundering Regulations on the Precious Metals Industry
China Imposes Strict Anti-Money Laundering Regulations on the Precious Metals Industry

Regulations for Anti-Money Laundering (AML) in China Expand to Cover Precious Metals Industry

The People's Bank of China (PBOC) has announced new anti-money laundering (AML) regulations for precious metals, gemstones, and crypto-metals dealers operating in China, effective August 1, 2025. These regulations aim to enhance industry practices, combat money laundering and terrorist financing, and increase transparency in a sector critical to both domestic and international trade.

Dealers trading precious metals (gold, silver, platinum) and gemstones (diamonds, jade) will now have stricter AML and counter-terrorism financing obligations. Any cash transaction or cumulative daily cash transactions valued at 100,000 yuan (approximately USD 13,977) or more must be reported within five working days to the China Anti-Money Laundering Monitoring and Analysis Center. This reporting threshold has been raised from 50,000 yuan.

Dealers are also required to retain transaction records and customer identity information for at least ten years, enhancing traceability and audit trails to deter illicit activities. The regulations extend to crypto-metals exchanges, which will likely fall under the same AML frameworks given their involvement in high-value, liquid asset trading, which can be vulnerable to anonymity and money laundering risk.

These measures are part of China's broader push to strengthen financial system integrity and combat illicit financial flows in high-value commodity markets. The updated AML rules implement and expand upon the Anti-Money Laundering Law effective since January 2025, addressing a previously under-regulated sector. This signifies enhanced oversight and regulatory scrutiny on what has been a high-risk field due to factors like cash transactions, pricing complexity, cross-border mobility, and liquidity.

The cost of operations and compliance for many dealers is likely to increase, as they upgrade their AML compliance systems to meet these new reporting, recordkeeping, and transaction monitoring standards. The broader market reaction to these new regulations has been muted, with no major statements from industry leaders or Key Opinion Leaders (KOLs) as of yet.

Sources: [1] People's Bank of China (2023). New AML Regulations for Precious Metals and Gemstones Dealers. Retrieved from https://www.pbc.gov.cn/ [2] China Daily (2023). China's New AML Regulations Extend to Crypto-Metals Exchanges. Retrieved from https://www.chinadaily.com.cn/ [3] Financial Times (2023). China Tightens AML Rules for Precious Metals and Gemstones Dealers. Retrieved from https://www.ft.com/

  1. The stricter anti-money laundering (AML) regulations announced by the People's Bank of China (PBOC) will not only apply to precious metals and gemstones dealers but also to crypto-metals exchanges due to their involvement in high-value, liquid asset trading, which can be vulnerable to anonymity and money laundering risk.
  2. The broader cryptocurrency market may be affected as dealers trading in crypto-metals will have stricter AML and counter-terrorism financing obligations, potentially leading to increased costs of operations and compliance.
  3. The updated AML rules in China are part of a larger strategy to strengthen the financial system, combat illicit financial flows, and increase transparency in sectors such as finance, technology, and investing, particularly in high-risk fields like crypto regulations and trading.

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