PRC Anti-Money Laundering Law
October 31st, 2006The PRC Anti-Money Laundering Law (反洗钱法 or fan xi qian fa, a literal translation) was passed today as expected by the Standing Committee of China’s National People’s Congress. The law comes into effect January 1, 2007. Its full text in Chinese is here.
More will doubtlessly be published tomorrow, but a brief English China Daily report on the draft is here.
Chinese Commentary on the law from this spring is available here, here and here.
There NPCSC held a press conference this evening. A trasnscipt (or “script”) is on the NPC’s website here (with some pictures and a minute-by-minute chronology!). Below is a quick translation of a fairly vapid exchange concerning the new anti-money laundering law:
Oriental Morning Post Reporter: I’d like to ask two questions about the Anti-Money Laundering Law. First, before this law was passed today, how have administrative agencies investigated and handled money laundering crimes? Second, will a new department be established as the principle agency for anti-money laundering, or an Anti-Money Laundering Bureau? How will the authority be delineated? Thank you.
Mr. Lang Sheng [Director of the Penal Code Section of the NPC Standing Committee's Rule of Law Working Committee]: Anti-money laundering is a new issue that emerged after our socilist market economy developed and is a new challenge we confront in constructing a market economy. Relevant departments of the State Council have worked actively and consistently to respond to this situation over the last several years. Administrative agencies have already promulgated specific anti-money laundering measures for financial institutions and instituted a reporting system for large, suspicious transactions as well as creating an “actual name” system for depositors. This constitutes a series of anti-money laundering measures. According to our understanding, in recent years the State Council’s department in charge of anti-money laundering activities has taken a number of effective enforcement actions. According to information they have provided, last year alone they investigated more than 1,000 entities and disposed of more than a hundred cases. You can consult with the anti-money laundering agency concerning specific cases. Law stipulates that the People’s Bank of China shall be the principal administrative agency for anti-money laundering.
I’m not an expert in this area, but, yes, I’d have to imagine it’s a step forward in anti-money laundering that one can no longer open a bank account in China under the name Mr. Monkey King or Ms. Watermellon.
Separately, 60-odd new laws or regulations came into force today, as detailed on this chart.
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