Definition of money laundering widened
October 31, 2006 | BY
clpstaff &clp articles &As part of its increased efforts to combat financial crimes, China's top legislature, the Standing Committee of the National People's Congress, approved…
As part of its increased efforts to combat financial crimes, China's top legislature, the Standing Committee of the National People's Congress, approved the PRC Anti-money Laundering Law on November 1 2006, which will become effective on January 1 2007.
In order to strengthen the country's ability to combat money laundering, the definition of money laundering has been widened to include corruption and bribe taking, violating financial management and financial fraud. Before, the criminal law identified money laundering as being associated with drug trafficking, organized crime, terrorist crime and smuggling.
The anti-money laundering law, which is the first of its kind in China, will allow the People's Bank of China (PBOC) and its branch offices to monitor and investigate the flow of suspect money and allow them to impose administrative punishments on employees who allow the illegal transfer of money, according to China Daily.
China has pledged to step up coordination with other countries to combat global money laundering and passed the law as required by its accession to the United Nations Convention Against Corruption. Zhang Hongwei, director of the anti-money laundering department of China's Ministry of Public Security, says the law will facilitate closer cooperation between police departments and financial institutions.
In 2004, the PBOC established the China Anti-money Laundering Monitoring and Analysis Centre (ALMAC), which is responsible for collecting and analyzing information in renminbi and foreign exchange in respect of anti-money laundering cases. According to ALMAC, 683 suspected money-laundering cases were reported to the police by the end of 2005.
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