society. ii. the operation of the online verification system the online verification system is an important joint measure of the pbc and the mps to implement the use of real names for bank accounts, which welcomed by commercial banks. with close cooperation with and wide support of banks, the pbc and the mps succeeded to introduce the system nationwide by 29 june 2007. the system consists of two core parts, namely systems of information transmitting and sharing, run respectively by the pbc and the mps. the system provide such services as single verification, batch verification, log inquiry, statistics and analysis, which are available for use 12 hours a day 7 days a week. at present, about 155, 300 banking outlets connect to the system, while the rural credit union in remote areas could not gain access to the system because of technical problems. online verification refers to a process in which a bank uses the online verification system to verify a customer ’ s identity, including name, id number, photograph, issuing authority and other information as noted in the citizen ’ s id card. the basic method is that banks submit the name and id number of the customer to the system for verification. if the information is true, banks will obtain the remaining identity information such as photograph and issuing - authority from the system. however, if the id number does exist, but is not consistent with the name or the id number does not exist, the system will correspondingly respond. according to relative provisions of laws and regulations, banks will determine whether to proceed with relative banking business on the basis of different verification results. in compliance with the provisions of laws and regulations, as well as executive regulations, banks shall verify customer ’ s identity when offering the following products or services : account opening or changing, including personal savings account, personal settlement account and corporate settlement account ; ( 2 ) payment and settlement business, including bill clearing, bankcard settlement, remittance and cash services ; ( 3 ) lending services, including personal loans and corporate loans ; and ( 4 ) others ( e. g., cash deposit or withdrawal with the amount exceeding rmb 50000 yuan or foreign exchange equivalent to 10000 u. s. dollar ). to ensure the system to function smoothly, to facilitate the masses and to safeguard the public ’ s legitimate rights and interests, we have formulated measures for handling online verification and trained bank staff at basic level so as to make a thoughtful arrangement in area of operational rules. first, banks should give different treatment to different verification results.

make greater efforts, by coordinating with provincial credit unions, to encourage rural credit unions to construct and restructure their network and operation system in order that all banks are able to connect to the verification system. during the transformation stage, those bank outlets that could not connect to the system can link to its superior offices or branch offices of the pbc to execute online verification. at the same time, the pbc will encourage banks to make practical program to replace character terminal and improve the number of personal computers in every banking outlet aiming at least one pc in every outlet. actively and steadily verify the existing bank accounts with the help of the online verification system. due to some reasons involving history and management, particularly because of having no effective measures to verify individual identification document, there are a small number of anonymous or fictitious accounts among existing personal accounts. for corporate bank accounts, a small number of corporate entities do not provide true information of their legal representatives. with a view to implementing the use of real names for bank accounts, the pbc will strictly observe relative policies and regulations and organize banks to carry out a comprehensive clean - up and verification to all corporate and personal bank accounts opened before the inauguration of the online verification system. the pbc will take steady and active steps to push forward such a program. stock corporate bank accounts will be cleaned up and verified first, followed by verification of the stock personal accounts based on relevant experiences obtained further implement the use of real names for bank accounts by taking effective measures. it is a long - term job and requires all related parties to make concerted efforts. recently, the pbc will improve the relative regulations on real name policy including defining types of valid documents that individuals could use to conduct banking business as well as the order of priority in presenting these documents, normalizing application procedures for opening a corporate bank account and its management agreement so as to clarify the basis of implementing the use of real names for corporate bank accounts, which provide policy basis covering a wider range of issues. at the same time, based on the cooperation with the mps, the pbc will strengthen cooperation with other ministries so that banks are able to verify enterprise code certificate or other credentials and provide more authority and effective measures to enable institutional customer ’ s identification in order to promote the comprehensive implementation of using real names for bank accounts.