US Shows Conflicts with China at First Financial Meeting

In a recent financial working group meeting, the US Treasury raised disagreements with China, where they discussed international financial stability, supervision and rigid regulations to combat economic crimes. 

The US officials “frankly raised areas of disagreements” with China on the global financial system and compliance with the rigid international standards to prevent money laundering and terrorist financing. They also stress the importance of implementing the latest AML derivatives amendments to regulate cryptocurrency platforms. According to a US Treasury Department, senior officials from China’s central bank and the US Treasury Department were included in the 2-hours live meeting. 

The Treasury Department stated, “the two-hour virtual meeting included a substantive and wide-ranging discussion on domestic and global financial stability, financial supervision and regulation, sustainable finance, and anti-money laundering and countering the financing of terrorism.”

The financial working group and a parallel economic working group were launched by Treasury Secretary, Janet Yellen, after she visited Beijing in July. Both groups were launched to foster the strength of the AML regulations and seamless convocation between the world’s largest economies. The senior officials of the US Treasury Department and the China Finance Minister lead the economic working groups. These groups are expected to focus on topics, such as anti-money laundering and counter-terrorism financing, as well as report their findings to their respective governments.

On October 13th, Yellen met with Pan Gongsheng, the governor of the People’s Bank of China, at the World Bank and International Monetary Fund annual meetings in Marrakech, Morocco. They discussed the global financial system and the debt problems that confront emerging economies. Yallen stated in the interview that it plans to increase International Monetary Fund (IMF) quota-based resources without enhancing its shareholder structure. China resisted approving the financing increase without raising its IMF shares, but Yellen ensured that the “equi-proportional” quota rise was “pretty likely” to succeed despite that. 

Suggested Reads: 

US ACCUSES CRYPTO FIRMS FOR SERVING AS MONEY LAUNDERING HUB
US CRYPTO INDUSTRY FACES PUSHBACK ON IMPLEMENTATION OF CRYPTO-FRIENDLY LEGISLATION
US TREASURY DEPARTMENT DISCLOSES LATEST BENEFICIAL OWNERSHIP INFORMATION (BOI) GUIDE