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CHINA TAKES TOUGHER STANCE ON MONEY LAUNDERING

4 October 2017

China is to take a more widespread approach to tackling money laundering.

The country’s central bank, the People’s Bank of China (PBOC), has said that more action needs to be taken as money laundering and terrorist financing activities are spreading to non-financial sectors, such as the real estate and jewellery markets.

The PBOC has already started monitoring and analysing activity in some areas of business and will draw up new anti-money laundering rules in conjunction with relevant government departments.

Since China's anti-money laundering law became effective in 2007, supervision of its financial sectors has improved. But regardless of this improvement, the fact that both the government and the state bank are working to tackle money laundering in many more trade areas shows that there remains a problem.

This has to be seen as an issue for anyone who trades in China – regardless of the nature of the trading.

If China’s state apparatus is actively looking to identify and prevent money laundering in many business sectors, it would be foolish for those doing business in the country not to take precautions.

While China can often be seen as a unique case in terms of business, it is similar to many countries in that it is increasingly determined to tackle money laundering in all aspects of its economy. Anyone with business interests there must make sure their money laundering prevention procedures are adequate and being actively enforced.

A failure to do this is now increasingly likely to lead to major legal problems.

Read our article: MAKING SURE YOU DO ENOUGH TO PREVENT MONEY LAUNDERING


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