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New AML Legislation Puts China on Par with International Standards
By Natasha Bright
printThe Chinese government's new anti-money laundering legislation strengthens the nation's efforts to protect businesses against corruption and financial crime and seeks to put its financial institutions on par with global standards. In fact, those rules may help China fulfill its obligations under the United Nations Convention on Corruption, a multilateral treaty requiring countries to strengthen money laundering controls to fight global corruption. With the new measures in place, China also may earn full membership in the international Financial Action Task Force (FATF), which granted the Asian nation observer status in August. The new law and corresponding regulations, effective Jan. 1,...
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Despite Chinas acceptance into FATF, money laundering and corruption in the country may get worse before they get better as root problems remain unaddressed, AML professionals say.
FATF approved Chinas membership during its plenary meeting in Paris this week. China passed comprehensive AML laws in October 2006 to bring its system in line with international standards.
The new rules, which extend a law enacted last year, are part of China's bid to join the international Financial Action Task Force.