China Enhances AML Obligations to Combat Money Laundering
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Chinese authorities have released the latest guidelines to enhance security in the financial sectors by strengthening the cooperation between supervisory, regulatory authorities, and police departments in combating money laundering and terrorist financing.
Chinese regulatory authorities collaborated with the National Commission of Supervision, the Supreme People’s Procuratorate, and the Ministry of Public Security to design new guidelines to strengthen supervision in Anti-Money Laundering (AML) regulations compliance measures.
According to the latest obligations, the supervisory authorities must determine the ultimate owner of the property, the source of the money, and where it is going whilst looking into the embezzlement and corruption cases. They must submit all the details related to money laundering cases to public security organs. Furthermore, the document addresses that public security authorities are required to disclose criminal organisations and gangs, restrict illegal fund channels, and collect adequate information on crimes to combat money laundering and underground banking activities. In order to keep their legal oversight requirements, they also urged the procuratorial authorities to better track the submission, inquiry, and hearings of money laundering cases.
Additionally, the document requires financial institutions to strengthen their internal controls and risk prevention measures in order to detect and prevent money laundering activities effectively. It also encourages financial institutions to report any suspicious activities to the relevant authorities. According to guidelines, these three departments can enhance their security system by utilising robust technology and improving collaboration on major cases through big data. The guidelines focus on strengthening the supervision of financial institutions and companies, as well as enhancing the information exchange between authorities.
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