China issues regulations to boost fight against money laundering

BEIJING, Jan. 16 (Xinhua) -- The central bank said on Friday that Chinese authorities have issued regulations governing special preventive measures against money laundering, which prohibit any unit or individual from arbitrarily lifting these measures.

The regulations, jointly released by the People's Bank of China and seven other departments, aim to prevent money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction, as well as to standardize the special preventive measures against money laundering.

The regulations require all units and individuals to legally implement special anti-money laundering preventive measures against subjects listed in certain categories, including terrorist organizations and individuals designated by the national anti-terrorism leading group and announced by its office.

The involved categories also include organizations and individuals subject to targeted financial sanctions in notifications issued by the Ministry of Foreign Affairs for implementing UN Security Council resolutions, along with organizations and individuals identified by the central bank or jointly with other state authorities as having significant money laundering risks, where inaction could lead to serious consequences.

According to the regulations, the special preventive measures against money laundering include immediately stopping the provision of financial services, funds or assets to the above-listed subjects and their agents, organizations and personnel under their direction, and organizations directly or indirectly controlled by them, and immediately restricting the transfer of relevant funds and assets.

The regulations also urge financial institutions to establish and improve internal control systems, implement special preventive measures against money laundering, and identify and assess related risks.