In order to strengthen the supervision of pre fees in elderly care institutions and improve the third-party custody system of commercial banks, the Ministry of Civil Affairs and the State Administration for Financial Regulation recently jointly formulated the "Guidelines for Pre fee Custody in Elderly Care Institutions" (hereinafter referred to as the "Guidelines"), which provide regulations on the opening, modification, and cancellation of special deposit accounts, the use and refund of custody funds, and abnormal flow of funds. The Guidelines specify that a pre paid special deposit account refers to a special account opened by elderly care institutions in commercial banks for storing and managing deposits, membership fees, and risk deposits that are collected in advance from the elderly, as well as risk deposits retained in accordance with regulations. Elderly care institutions shall independently choose a bank within the scope of the list of commercial banks in the local area that undertake pre fee custody business published by the civil affairs department to open a unique pre fee special deposit account. The Guidelines require that elderly care institutions generally collect deposits and membership fees through custodian banks. For payments received through other payment institutions or cash, they shall be transferred or deposited into a dedicated deposit account on the day of receipt (no later than the next day); If the deposited funds are used to pay for the medical expenses of the elderly in case of emergencies, the custodian bank may handle it in a timely manner, and the elderly care institution shall provide relevant supporting materials within 7 working days after the elderly receive medical treatment. According to the Guidelines, if there are abnormal fund flows such as large transactions, suspicious transactions, high-risk transactions, and non designated transactions in the special deposit accounts of elderly care institutions, the custodian bank shall not handle expenditures for them except for refunds, and shall also issue risk warnings to the civil affairs department responsible for supervision. Among them, in cases involving large transactions, suspicious transactions, money laundering, etc., the local branch of the People's Bank of China shall be reported simultaneously; If it involves illegal fundraising, it shall be reported to the local leading department for handling illegal fundraising and the branch or dispatched institution of the financial management department of the State Council where it is located. (New Society)