China is revamping its anti-money laundering law to bolster its crackdown on illegal activities like cross-border gambling and underground banks. This move aligns with global standards as China faces stricter international scrutiny. According to the governor of the People’s Bank of China, Pan Gongsheng, the revision is necessary to meet the country’s current anti-money-laundering needs and integrate with emerging international demands. The revision aims to improve the law by addressing loopholes in compliance management and leveraging regulatory technology to handle the complex nature of financial crimes and the burgeoning fintech sector. It also bolsters the supervision and management of anti-money-laundering operations, clarifies the scope of non-financial institutions subject to the law, and advances provisions of obligations. The revision follows a fourth-round assessment by the Financial Action Task Force in 2019, in which China narrowly passed. The assessment highlighted weak obligations in controlling money laundering by some Chinese financial institutions and a lack of transparency in legal arrangements. Qian Hang, a partner at Oliver Wyman, emphasized the importance of the upcoming fifth-round assessment, which will focus on effectiveness and results. He urged Chinese financial institutions to enhance their compliance efforts and use the review period to upgrade their operations before the task force’s field work begins in 2025.
China Revamps Anti-Money Laundering Law to Counter Illegal Activities and Align with Global Standards
