(ECNS) -- A new regulation to take effect in May requires home buyers in Beijing to use their own bank cards to complete a payment as the city seeks to further cool down the property market and fights money laundering.
The notice jointly issued by the central bank, the People's Bank of China and Beijing Municipal Commission of Housing and Urban-Rural Development said property developers and housing brokerages should perform their duties in anti-money laundering.
Housing transactions must include bank transfers, the notice said. Property developers and real estate agents have the responsibility of registering and checking the information of both trading parties, including their bank card accounts, business licenses and IDs.
The new rule also requires housing developers and real estate agents to report suspicious trading such as deviations between the identities of trading parties and a property's value.
Cash payments should also be made using the bank accounts of both buyer and seller, while commercial banks are required to report any cash deposit or payment above 50,000 yuan ($7,270) each day into an account.
Authorities in Beijing have introduced a spate of measures, including higher down payment, high mortgage rates and tougher purchase restrictions, to cool the red-hot property market. But the new policy also targets possible money laundering through housing sales.