China

Identity Verification & KYC For China

Built for institutions operating under the Anti-Money Laundering Law of the People’s Republic of China (2006, as amended), supervised by the People’s Bank of China (PBOC) and the National Financial Regulatory Administration (NFRA), across banking, payments, fintech, digital platforms and other regulated sectors.

Operational Performance for KYC in China

Our Numbers Speak Volumes

99.66%

Pass Rate

5 secs

IDV Verification Time

95%

eIDV Verification Rate

Evidence-Ready Checks Across People & Businesses

Individual Documents We Verify

Shufti can verify 10+ types of Chinese personal documents

View all supported documents

Resident Identity Card (People’s Republic of China Resident Identity Card)

Primary identity document for Chinese citizens under the Resident Identity Card Law. Chip-enabled second-generation ID card used for mandatory real-name verification across financial services and telecom sectors.

Mainland Travel Permit (for Hong Kong, Macao and Taiwan Residents)

Used for identity verification of non-mainland Chinese nationals residing or operating in mainland China.

PRC Passport (普通护照 – ePassport)

ICAO-compliant biometric passport with embedded chip and MRZ; used for cross-border onboarding.

Foreigner’s Passport + Residence Permit

Required for non-Chinese nationals residing in China; validated alongside residence permit issued by Public Security Bureau.

Chinese Driving Licence (机动车驾驶证)

Supplementary identification only; not sufficient alone for financial onboarding under AML rules.

Real-Name Registered Mobile Number

Telecom SIM cards must be registered under real-name requirements pursuant to Ministry of Industry and Information Technology (MIIT) regulations; often used as secondary corroboration.

Business Entity Identity

Business Licence (营业执照)

Issued by the State Administration for Market Regulation (SAMR); confirms unified social credit code, legal representative and business scope.

National Enterprise Credit Information Publicity System Extract

Confirms registration status, shareholders, administrative penalties and annual filings.

Articles of Association (公司章程)

Defines corporate governance structure and shareholding arrangements.

Tax Identity

Unified Social Credit Code (统一社会信用代码)

18-digit identifier combining tax, registration and organisational codes.

Tax Registration Status (State Taxation Administration)

Confirms tax compliance status and VAT registration where applicable.

Ownership and Control (UBO)

Actual Controller Declaration (where applicable)

Identifies ultimate controlling party, particularly relevant for financial institutions and cross-border transactions.

Legal Representative Information (法定代表人)

Mandatory registered representative subject to AML screening.

Language Support

English Document Processing

Simplified Chinese character recognition for PRC ID cards and business licences.

Name Matching (Supports Multiple Format Variants)

Name matching controls for pinyin transliteration inconsistencies (e.g., Zhang Wei vs. Wei Zhang).

Account Opening Data Consistency Check

Cross-record consistency checks between Chinese characters and Romanised names in passports and international records.

Governance and Control

Audit-Ready Decisions, Lower Operational Drag

Fewer Avoidable Re-submissions

Optimised capture for PRC ID card format and Simplified Chinese documentation.

Clearer Audit Trails

Structured logs aligned with AML Law record retention obligations.

Better Name Matching Outcomes

Handles pinyin transliteration, name order reversal and character-to-Latin inconsistencies.

One Workflow, One Back Office

KYC, KYB and AML screening managed in one operational case view.

National ID-first flow design

Resident Identity Card-first onboarding reflects China’s real-name regulatory model.

China IDV/KYC Challenges

Real-Name Enforcement Risk

Mandatory real-name systems increase liability for identity misverification. Telecom and financial sectors require verified identities but weak verification exposes firms to administrative penalties.

Pinyin Mismatch Errors

Romanisation inconsistencies trigger sanctions false positives. Chinese names often reversed in international records. And multiple pinyin spellings reduce screening precision.

Complex Ownership Layers

Multi-tier shareholding structures delay KYB and obscure controllers. Beneficial ownership transparency remains evolving and cross-border structures increase review workload.

Data Localisation Controls

PIPL and Data Security Law restrict cross-border personal data transfers. Sensitive data exports require security assessment and improper handling increases regulatory exposure.

Shufti’s China Identity Verification (IDV) / Know Your Customer (KYC) Solutions

KYC Solutions

Face Verification

Biometric liveness detection reduces impersonation risk in China’s mobile-driven digital payments and fintech environment.

Age Verification

Selfie-based age estimation with document verification fallback where required for gaming and youth protection compliance under PRC regulations.

Address Verification

Shufti verifies Chinese address-bearing documents including utility invoices (State Grid, China Southern Power Grid), telecom bills (China Mobile, China Unicom, China Telecom) and bank statements (ICBC, Bank of China, CCB).

Document Verification

Verification of PRC Resident Identity Cards, passports and business licences — handling Simplified Chinese text and unified social credit codes.

KYB Solutions

Business Verification

Validation of business licence number, unified social credit code, legal representative and shareholder records through official registry sources.

Enhanced Due Diligence (EDD)

Structured review of complex shareholding structures and cross-border ownership aligned to AML supervisory expectations.

AML Screening

Business AML Screening

Screening against UN sanctions, domestic restrictive measures and global PEP databases — covering entity and controlling persons.

Transaction Screening

Ongoing monitoring aligned with AML Law reporting obligations and PBOC supervisory expectations.

REGULATORY ALIGNMENT

Built to Fit China's Compliance Landscape

People’s Bank of China (PBOC)

Primary authority responsible for AML supervision under the AML Law. Shufti supports risk-based CDD, identity verification and five-year record retention requirements.

National Financial Regulatory Administration (NFRA)

Supervises banking and insurance institutions. Structured onboarding controls support compliance with financial sector AML rules.

China Securities Regulatory Commission (CSRC)

Regulates securities and capital markets. Beneficial ownership capture and ongoing AML screening support securities sector compliance.

State Administration for Market Regulation (SAMR)

Maintains business registration and licensing system. Moreover, KYB workflows validate business licence authenticity and registration status.

State Taxation Administration (STA)

Administers tax compliance. Verification of unified social credit code and tax status supports entity legitimacy checks.

Ministry of Industry and Information Technology (MIIT)

Oversees telecom real-name registration rules. Identity workflows align with mandatory real-name SIM registration requirements.

Cyberspace Administration of China (CAC)

Oversees data security and cross-border data transfer under the Data Security Law and Personal Information Protection Law (PIPL). Additionally, data handling workflows support minimisation and lawful processing expectations.

Deployment Options

Using cloud regions within China (such as Beijing and Shanghai) or localized on-premise deployment helps meet PIPL data localization principles and regulatory requirements for domestic storage of personal and financial data.

Regulatory Compliance Alignment

Complies with Customer Due Diligence (CDD), beneficial ownership identification, and suspicious transaction reporting obligations under the AML Law, while also adhering to PIPL processing principles of lawfulness, purpose limitation, and transparency.

Data Retention Controls

Under AML regulatory requirements, customer identity information and transaction records typically need to be retained for at least five years after the business relationship ends.

Encryption and Security Measures

Technical and organizational measures such as encryption, access controls, and secure processing mechanisms support PIPL data security handling requirements and align with China’s cybersecurity compliance framework.

Data Control and Privacy Protection in China

China AML Sources That Strengthen Decision

Central Commission for Discipline Inspection (CCDI)

China Securities Regulatory Commission (CSRC)

MOFCOM Unreliable Entity List (MOFCOM UEL)

Credit China

Ministry of Civil Affairs - Illegal Social Organizations List

National Narcotics Control Commission (NNCC)

Asian Infrastructure Investment Bank (AIIB)

Central Commission for Discipline Inspection (CCDI)

China Securities Regulatory Commission (CSRC)

MOFCOM Unreliable Entity List (MOFCOM UEL)

Credit China

Ministry of Civil Affairs - Illegal Social Organizations List

National Narcotics Control Commission (NNCC)

Asian Infrastructure Investment Bank (AIIB)

Central Commission for Discipline Inspection (CCDI)

China Securities Regulatory Commission (CSRC)

MOFCOM Unreliable Entity List (MOFCOM UEL)

Credit China

Ministry of Civil Affairs - Illegal Social Organizations List

National Narcotics Control Commission (NNCC)

Asian Infrastructure Investment Bank (AIIB)

Frequently Asked Questions

Is the Resident Identity Card mandatory for financial onboarding?

Yes. Financial institutions are required to conduct customer identity verification under the AML Law using valid identification documents.

How is beneficial ownership verified in China?

Through shareholder filings and corporate registration records maintained by SAMR, alongside internal ownership documentation.

Are sanctions lists required for screening?

Institutions are expected to screen against UN sanctions and other relevant restrictive measures.

How long must AML records be retained?

Financial institutions must retain customer identity and transaction records for at least five years.

Does China require data localisation?

Personal information processing is governed by PIPL and Data Security Law, with cross-border transfers subject to security assessment requirements.

What causes onboarding friction in China?

Pinyin inconsistencies, complex ownership structures and strict data handling controls.

Build China-Ready KYC, KYB, and AML Workflows with Shufti

Check Pricing Request Demo

Independent Audits · Global Certifications

Certified to Global Standards

Proven Workflows

Use Cases for Compliance-Led Growth in Australia

Fintech

Forex

Banking

Gaming

Gig Economy

Crypto

Marketplace

Fintech

Forex

Banking

Gaming

Gig Economy

Crypto

Marketplace

Fintech

Forex

Banking

Gaming

Gig Economy

Crypto

Marketplace

Accelerate Growth, Reduce Friction

Complete user onboarding in seconds, not days. Deploy layered address verification flows to filter synthetic fraud while improving completion rates for genuine users.

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Onboard Global Traders in Real Time

Verify investors from 250+ countries and territories. Stay compliant with international financial regulations while preventing identity theft and high-risk chargebacks.

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Build Trusted Security Into Every Transaction

Automate KYC and AML workflows to reduce manual onboarding costs. Strengthen proof-of-address checks while delivering a smooth, frictionless digital experience for modern customers.

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Create a Fair and Secure Player Experience

Reduce bonus abuse and multi-accounting from the point of entry. Enforce geolocation rules and trigger additional verification when needed, without harming player experience.

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Build a Trusted and Verified Workforce Network

Screen freelancers and drivers at scale. Verify residence information and reduce onboarding friction while maintaining trust across users.

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Scale Your Digital Asset Platform with Confidence

Balance anonymity and compliance. Instantly verify user jurisdictions to meet Travel Rule requirements and prevent abuse without disrupting legitimate transaction volume.

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Reduce Fraud Risk Without Slowing Growth

Shufti protects marketplace integrity on digital platforms by verifying both buyers and sellers, while supporting age-based access flows when required. It also preserves key evidence for investigations, dispute handling, and risk-based compliance enforcement.

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