China's AML/CTF supervisors
The National People's Congress (NPC), the highest body of state power in China, represents the legislative branch in that country's intricate legal system. The NPC elects all the nation's executive, judicial, supervisory, and prosecutorial officials.
The structure of the FIU established within the People's Bank of China is made up of the China Anti-Money Laundering Monitoring and Analysis Center (CAMLMAC), the Anti-Money Laundering Bureau (AMLB), and the 36 provincial divisions of the People's Bank of China. This structure reflects a decentralised approach with a high potential to produce financial intelligence supporting the operational needs of competent authorities.
How do you comply with AML/CTF regulations in China?
The Internal Control Guidelines were published by the China Banking Regulatory Commission (CBRC), requiring banks to clearly define internal control functions, develop their programmes, provide more support, and conduct ongoing reviews and oversight.
To effectively monitor, report, and evaluate suspicious transactions as well as update accountability and follow-up policies and procedures, the guidelines mandate that financial institutions strengthen their three layers of defence, namely business management, risk and compliance, and audit and supervision.
Although China's legal and regulatory framework for combating money laundering is constantly being improved, there are still shortcomings in terms of effectively enforcing laws and regulations and upholding transparency, especially in the context of international cooperation, including:
Establishing internal guidelines to ensure compliance with all applicable laws and regulations
Meeting AML/CTF implementation standards at the global and local levels, compliance and anti-financial crime departments and units by conducting ongoing training to maximise human performance
Transmitting information to the appropriate authorities and judicial institutions to assist in the planning of law enforcement and criminal prosecutions
Requesting information on transactions that are allegedly part of money laundering operations