Anti-laundering law’s limitations
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China’s anti-money laundering laws are in a state of flux. Money laundering is an offence under the criminal law, which confines the scope of the offence to drug-related crimes, the organised underworld, smuggling and terrorist activities. The legal framework also includes three regulations issued in 2003 by the People’s Bank of China, which set out guidelines for identifying and reporting money-laundering activities by domestic and foreign-invested financial institutions. Generally, reporting is to the PBOC and, in the case of foreign exchange transactions, to the State Administration of Foreign Exchange. If a financial institution believes a criminal offence has occurred, it must also notify the Public Security Bureau. Source : ft.com |