, the nation's central bank, is preparing the Regulations
on Anti Money Laundering in Financial Institutions, according to
the bank's Governor Dai Xianglong.
Dai made the remarks during an anti money laundering conference,
recently held in Beijing. "Relevant regulations concerning the
administration of payment dealings reports, temporary regulations
of suspicious forex, and large-scale capital in financial
institutions will be established to improve the laws governing anti
money laundering," he said. It's the first time that China's banks
have held such a conference to discuss these issues.
An
analysis and supervision system of financial dealings and
information communication mechanism will be established, in order
to crack down on financial crimes such as money laundering. To
date, the main focus of the institution has been to standardize
account administration, strengthen forex management, and crack down
on illegal banks.
During the conference banks were urged to administer financial
regulations such as the Regulations on the Real Name System for
Personal Bank Accounts, and strengthen training on anti money
laundering. In addition, international cooperation to crack down on
money laundering and the financing of terrorist activities was also
emphasized.
China has so far promulgated a series of regulations to standardize
financial dealings. The regulations, which have already been
established by the People's Bank of China and State Administration
of Foreign Exchange, include Measures on Account Administration,
Measures on Domestic Forex Account Administration, the Circulation
on the Administration of Large-scale Cash Payment, and Measures on
Recordation of Large-scaled Cash Payments. Currently, the real name
system for personal bank account is already being carried out.
Commercial banks, on the other hand, have introduced their own
regulations on anti money laundering.
Mr. Dai pointed out that, "Commercial banks should prevent these
financial crimes by improving and implementing the financial
dealings system in strict accordance with the regulations, joining
hands with the justice department to crack down on illegal money
laundering."
As
a financial supervision institution, the People's Bank of China
will monitor the implementation of the financial dealings system,
maintain depositors' rights, and assist other departments to crack
down on financial crimes.
As
early as September last year, the People's Bank of China set up a
leading team on anti money laundering, to monitor such issues in
China's banking industry. In July this year, a special institution
was set up to supervise suspicious large-scale payments and
financial dealings. Some commercial banks also established relevant
departments to monitor anti money laundering through their own
institutions.
(china.org.cn by Tang Fuchun, September 25, 2002)