The China Banking Regulatory Commission (CBRC) said Tuesday that lenders should tighten risk controls in their overseas branches, following several cases in which leading Chinese banks have come under foreign scrutiny for alleged compliance failings.
Banks should clarify the responsibilities of staff in overseas branches, strengthen risk assessments and make sure clients are adequately vetted, the CBRC said in a statement on its website.
"Banking institutions should strictly follow 'know your customer' requirements," said the CBRC. "They should not fully rely on third-party information or borrowers to provide information," it noted.
