China Strengthens Anti-Money Laundering Regulations: New Draft Rules Target Non-Financial Institutions

BEIJING — In a significant move to fortify China’s Anti-Money Laundering (AML) framework, Chinese lawmakers are currently debating a draft revision to the current AML law during an ongoing session of the National People’s Congress Standing Committee. The new legislation sets clear anti-money laundering obligations for specific non-financial institutions.

Key Points of the New AML Draft

• Chinese lawmakers debating a draft revision to the current AML law during the National People’s Congress Standing Committee.
• The new legislation sets clear anti-money laundering obligations for specific non-financial institutions.
• The new draft aims to enhance the oversight and administration of AML activities while improving related provisions concerning non-financial institutions’ obligations.

Scope of Non-Financial Entities Subject to AML Regulations

• The draft defines the scope of non-financial entities subject to AML regulations.
• Outlines their responsibilities, enabling comprehensive supervision.

Obligations for Financial Institutions

• Carrying out thorough customer due diligence.
• Retaining customer identity information materials and transaction records.

Enhancing China’s AML Regulations

• The new draft represents a substantial leap forward in China’s ongoing efforts to bolster its AML regulations.
• Once approved, these new rules are expected to create a more stringent regulatory landscape.
• Contributing to a stronger and more transparent financial sector.

Continued Discussions on the Draft Revision

• Lawmakers are expected to continue their discussions on the draft revision in the coming days.
• The ultimate goal is to pass the updated AML law to better safeguard China’s financial system from money laundering activities.