China launches three-year anti-money laundering campaign

At the end of January 2022, China launched a three-year anti-money laundering (AML) campaign. According to a government statement, the campaign intends to safeguard national security and social stability. 

The campaign, which is already underway, will last until the end of 2024. It’s led by the People’s Bank of China (PBOC) and the Ministry of Public Security, according to a statement on the central government website.

The statement says that “the situation of combating money laundering remains severe”. It adds that China will “resolutely curb the spread of money laundering and related crimes”.

China also strengthens ability of firms to combat money laundering

The announcement of the campaign, which involves 11 Chinese governing bodies, coincided with the country’s decision to publish revised rules designed to strengthen financial firms’ ability to combat money laundering.

Under the new rules, financial institutions in China will be required to implement comprehensive internal control procedures, including self-assessment mechanisms, risk analysis, and audit control measures.

The revised rules will bring China more in line with global anti-money laundering (AML) standards. They will regulate how financial institutions conduct due diligence on their clients and store their identity and trading data, according to a statement from China’s central bank.

The new rules will come into effect on March 1. They were jointly published by the People's Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission. The regulators said that the revisions were made after soliciting public opinion.

The new rules will apply to non-bank payment companies and wealth management firms in addition to financial institutions covered by previous rules, such as banks, insurers, and brokerages.

Ensure AML compliance with Veriff

Around the world, authorities are looking at ways to strengthen AML rules and regulations. Although the new policies highlighted above apply to firms in China, we've also recently seen announcements from other parts of the globe. This includes the EU, where a new AML authority is set to be established.

If your business operates in the world of financial services, then it’s vital that you meet the latest AML guidelines. Thankfully, our end-to-end anti-money laundering compliance tool can help you show regulators that you take financial crime and compliance seriously.

With our AML and KYC compliance solution, you can verify the identity of your customers, check them against global sanctions and PEP watchlists, and screen them for negative news and predicate offenses. You can also monitor them on an ongoing basis.

Want to learn more about how our AML solutions can help your business? Book a consultation with the team today and receive a personalized demo.