Financial Crime World

Here is the converted article in Markdown format:

China Strengthens International Cooperation against Money Laundering

======================================================

In a bid to strengthen its efforts against money laundering, the People’s Republic of China has taken significant steps to enhance international cooperation and domestic regulation.

Strengthening International Cooperation

According to Article 27 of China’s Anti-Money Laundering Law, the country is committed to cooperating with foreign governments and international organizations to combat money laundering. This cooperation will be based on the principles of equality and mutual benefits, and will involve:

  • The exchange of information and materials related to anti-money laundering efforts
  • Judicial assistance requests related to money laundering crimes

Domestic Regulation

The law also outlines strict legal liabilities for those who fail to comply with anti-money laundering obligations. For example:

  • Financial institutions that fail to establish internal control programs or designate specialized units to handle anti-money laundering tasks may face:
    • Administrative sanctions, including fines and corrective measures (Articles 30-32)
    • Severe penalties, including fines ranging from RMB 200,000 to RMB 5 million
    • Disciplinary sanctions against directors and senior managers

In cases where the misconduct is serious enough to become a crime, corresponding criminal liabilities will be pursued in accordance with relevant laws (Article 33).

Designation of Non-Financial Institutions

The law also provides for the designation of non-financial institutions that will be required to bear anti-money laundering obligations. The specific measures and supervision procedures for these institutions will be decided jointly by:

  • The Competent Authority
  • Other relevant authorities under the State Council (Article 35)

Monitoring of Suspicious Funds

The law also applies to the monitoring of suspicious funds related to terrorist activities, unless otherwise prescribed by other laws (Article 36).

Effective Date and Source

The Anti-Money Laundering Law is set to take effect on January 1, 2007, marking a significant milestone in China’s efforts to combat money laundering and protect its financial system.

Source: [Anti-Money Laundering Law of the People’s Republic of China](http://Effective as of January 1, 2007)