China will suspend implementation of the administrative measures for customer due diligence of financial institutions and preservation of customer identity information and transaction records for technical reasons, said an announcement jointly issued by the People's Bank of China, the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission on Monday.

The administrative measures were originally scheduled to be implemented on March 1.

Financial institutions, including commercial banks, should identify and verify the identity of a customer and register the sources or the purpose of funds when handling cash deposits and withdrawals on a single transaction of over 50,000 yuan ($7,885.4) or foreign currency equivalent to more than $10,000 for a natural person customer, according to the administrative measures.

Some small and medium-sized financial institutions said since the measures set specific standards and requirements for different financial products and business models, financial institutions have to revise and improve their internal management systems, information systems and business procedures and conduct employee training.

With that in mind, policymakers and financial regulators decided to suspend implementation of the administrative measures, said an official of the PBOC, China's central bank.

The PBOC will continuously instruct financial institutions to step up anti-money laundering practices, further optimize services for the people while preventing risks at the same time, and protect the safety of customers' funds and the interests of the people in accordance with the law, the official said.

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