China Strengthens Anti-Money Laundering Rules for Financial Institutions

China has taken steps to improve financial institutions’ measures to combat money laundering by publishing revised rules and regulations.

On Wednesday, January 26, China published the revised rules for financial institutions. The regulations enlist the standards for customer due diligence in financial institutions, as well as storing personal information or business data.

According to China Central Bank, the rules are also aimed to improve China’s compliance regime to align it with the global anti-money laundering (AML) standards.

The financial institutions that come under the new regulations include non-bank payment companies and wealth management firms in addition to the common institutions such as banks, insurance companies, and brokerages.

China tightens #AML rules for financial firms (via @reuters): https://t.co/1x7wT7VnG5. Advanced #AI is critical for detecting today’s sophisticated #moneylaundering schemes and avoiding significant regulatory fines.

— ThetaRay (@ThetaRayTeam) January 26, 2022

Under the new rules, financial institutions will be required to implement comprehensive internal control procedures, including self-assessment mechanisms, risk analysis, and audit control measures. 

The rules are set to be effective from 1st March 2022 and were jointly published by the People’s Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission.

Suggested read: China Raises Penalty, Broadens Scope of AML Laws