In a landmark effort to safeguard the financial assets of elderly citizens, China has unveiled comprehensive new regulations governing the management of prepaid fees by nursing homes. The Ministry of Civil Affairs, in collaboration with the National Financial Regulatory Administration, introduced these measures as part of a broader initiative to combat illegal fundraising and financial fraud targeting seniors. The guidelines, titled ‘Guidance on the Custody and Management of Prepaid Fees for Nursing Institutions,’ mandate that all prepaid funds be deposited into a dedicated, monitored bank account to address longstanding concerns over misuse. Nursing homes are required to open these accounts at approved banks, and any withdrawals must be justified with supporting documents, except in cases of emergency medical expenses. Custodian banks are tasked with refusing suspicious transactions and reporting them to regulatory authorities. Additionally, the guidelines ensure prompt refunds, requiring banks to process repayments within one day of receiving a valid request. To enhance transparency, custodian banks must develop specialized account management systems that interface with civil affairs departments, providing real-time data on fund flows. Online banking for these accounts is prohibited, and all transactions must be processed over the counter or through a dedicated platform, with balance checks to maintain a required safety margin.