Financial Crime World

Joint Operation Cracks Down on Illegal Activities

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A special operation jointly organized by the People’s Bank of China (PBC) and relevant authorities has led to a significant crackdown on illegal activities in the country. The operation, which was launched in 2015, aimed to combat the use of offshore companies and underground banks for money laundering.

Operation Details

  • The PBC, along with the Ministry of Public Security, Supreme People’s Court, Supreme People’s Procuratorate, and the State Administration of Foreign Exchange, conducted a nationwide operation to tackle illegal activities related to cross-border money laundering.
  • The operation led to the uncovering of 380 serious cases, demonstrating the effectiveness of the joint effort.

Combating Money Laundering

  • To combat the growing threat of money laundering activities related to public-related economic crimes, the PBC has taken an active role in researching various types of money laundering crimes and summarizing case characteristics and red flags.
  • The bank has also released risk notifications for opening accounts with other people’s identity documents and accounts by specific groups relevant to public-related economic crimes.

Enhancing Customer Identification and Transaction Monitoring

  • The PBC has guided regulated institutions to enhance customer identification, improve transaction monitoring models, and conduct preventative education to customers.
  • The bank has also actively cooperated with the police to conduct case investigations, achieving significant results in cases involving telecommunication fraud and money laundering.

International Cooperation

Joining International Organizations

  • China has joined international organizations such as the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG) and the Asia/Pacific Group on Money Laundering (APG).
  • The country has also established formal AML/CFT information exchange and cooperation relationships with financial intelligence units in 38 countries and regions.

Information Exchange and Cooperation

  • China has received and sent overseas intelligence, including a memorandum of understanding for financial intelligence exchange and cooperation with Financial Crimes Enforcement Network (FinCEN) of the US Department of Treasury.

Continuous Improvement

Addressing Challenges

  • China’s AML work faces increasingly complex environments both at home and abroad.
  • To address these challenges, the PBC’s AML departments will continue to improve and complete the AML system.

Focus Areas

  • Counter-terrorism financing
  • Actively responding to the growth of internet finance
  • Combating public-related economic crimes

Regulating Internet Financial Risks

  • The PBC has already taken steps to regulate internet financial risks and plans to accelerate the development of the AML system in key sectors of internet finance.
  • The bank will also continue to cooperate with relevant departments to conduct special regulation of internet financial risks and ensure the long-term healthy development of the industry.

Conclusion

In conclusion, the joint operation between the PBC and relevant authorities has demonstrated the effectiveness of cooperation in combating illegal activities. China’s AML work will continue to evolve to address the growing threats of money laundering and terrorist financing, ensuring the stability and security of the financial system.