Chinese Lawmakers Start Deliberating Draft Revision to Anti-Money Laundering Law

Beijing Session of National People’s Congress Underway

Chinese lawmakers have begun deliberating on a draft revision to the country’s Anti-Money Laundering Law, which outlines specific anti-money laundering obligations for non-financial institutions. The revised law was submitted to an ongoing session of the Standing Committee of the National People’s Congress, China’s national legislature.

Key Provisions of the Draft Revision

The draft, comprising 62 articles in seven chapters, aims to:

• Strengthen Supervision and Management: Improve provisions on anti-money laundering responsibilities and strengthen supervision and management of anti-money laundering measures.
• Clarify Scope and Obligations: Clarify the scope of non-financial institutions involved and their obligations regarding anti-money laundering supervision.

Specific Requirements for Financial Institutions

The draft stipulates specific requirements for financial institutions, including:

• Internal Control Mechanisms: Establish and improve internal control mechanisms for anti-money laundering.
• Customer Due Diligence: Conduct thorough customer due diligence to ensure the authenticity of customers’ identities.
• Customer Information Materials and Transaction Records: Maintain accurate records of customer identity information materials and transaction records.

This revised law is expected to have a significant impact on China’s efforts to combat money laundering and terrorist financing, and will likely be closely watched by international financial regulators and experts.