In the beginning of a year (29 Jan ’19), CBIRC (China Banking and Insurance Regulatory Commission) had issued the administrative measures for AML and CTF. This was to establish CBIRC’s basic framework for anti-money laundering work. The new document specifies that money laundering is a serious crime, lying downstream from seven crimes - gang-type organized crime, financial fraud, etc.
AML systems in the banking industry have consistently been a key focus of regulation. However, as seen from the penalties imposed the last year (*2018-2019 period), banks remained the major recipients of penalties. When a financial institution involves blockchain technology, the risk of illegal funding also becomes high.
In the past years, China failed to perform its AML obligations due to lack of criminal compliance experience. The financial institutions struggle to cope with the regulations. The establishment of a new AML control system is more than just a requirement, and all the financials and non-banking financial institutions (insurance, fund management, and securities companies) are required to follow the rules.
Source - China Business Law Journal
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