BIZCHINA / Top Biz News
Law widens definition of money laundering
(Xinhua/China Daily)
Updated: 2006-11-01 06:47
Landmark legislation on anti-money laundering and death sentences was
approved by China's top legislature Tuesday and is scheduled to take
effect on January 1.
The Standing Committee of the National People's Congress widened the
definition of money laundering to include corruption and bribe taking,
violating financial management regulations and financial fraud.
Previously, the law identified only drug trafficking, organized or
terrorist crime and smuggling as money laundering.
Officials and analysts believed the ambit was too narrow and called for
stepped-up efforts to combat money laundering and stop corrupt officials
fleeing abroad with large amounts of illicit money.
The law demands that financial and some non-financia l institutions
maintain customer and transaction records and report large and suspect
transactions.
The People's Bank of China, the central bank, and its provincial branch
offices are authorized to investigate suspect fund transfers.
According to the China Anti-Money Laundering Monitoring and Analysis
Centre, an office under the central bank set up in 2004, 683 suspected
money laundering cases had been reported to the police by the end of
2005. They involved 137.8 billion yuan (US$17.2 billion) and US$1 billion.
The law, made as required by the United Nations Convention Against
Corruption, also pledges to step up co-ordination with other countries to
combat global money laundering and exchange information with overseas
anti-money laundering organizations.
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