What are the specific non-financial institutions

2022-08-03 0 By

Specific non-bank financial institutions are all financial institutions except commercial banks and specialized banks.Including trust companies, financial asset management companies, financial leasing companies, auto financing companies, insurance companies and insurance asset management companies.1. It is the development trend of international anti-money laundering legislation to bring specific non-financial institutions into the subject of anti-money laundering obligations.As the main channel of financing in modern society, the financial system is prone to and high incidence of money laundering.Specific non-financial institutions refer to non-financial legal persons and their branches engaged in part or all payment and settlement business within the territory of the People’s Republic of China.2. To prevent and monitor money laundering, financial institutions and specific non-financial institutions should be core subjects, and financial institutions should monitor and report abnormal financial flows in order to detect and control criminal funds.The types of payment and clearing services include online payment, electronic currency issuance and clearing, inter-bank clearing of bank bills, inter-bank clearing of bank cards and other payment and clearing services approved by the People’s Bank of China.3. Financial product selling institutions shall conduct special due diligence and risk assessment on financial products to be sold to specific targets.Fully understand the investment direction, strategy, risk and investor suitability requirements of the products to be sold, issue special compliance opinions and keep them for future reference.4. The difference between non-bank financial institutions and banks lies in the different forms of credit business, and the division of their business activities depends on the provisions of national financial regulations.The role of non-bank financial institutions in the process of social capital flows is to purchase primary securities from the end borrower and issue indirect bonds for the end lender to hold assets.Through such intermediary activities of non-bank financial institutions, the unit cost of investment can be reduced;We can reduce the risk of investment by diversifying investment, adjust the term structure, and minimize the possibility of liquidity crisis;Repayment demands can be predicted normally, and even illiquid asset structures can be easily met.