China strengthens Money Laundering Rules
On June 12, 2007, a Chinese news agency, Xinhua News Agency, reported that China has tightened its money laundering rules in order to prevent and stop this criminal activity and to join an international financial monitoring group.
On June 11, new rules were issued to make banks in China report any suspicious transactions to an enforcement agency run by the central bank. According to Xinhua News Agency, the government is hoping the release of the rules boost its chances of joining the Financial Action Task Force (FATF).
In May, the US agreed to support Beijing’s application to join the FATF, which will vote on Chinese membership this month.
In accordance with the information provided by Xinhua, the rules require banks to report clients suspected of the involvement in terrorist organizations listed by the government of China or the UN Security Council. If banks fail to comply, they could be temporarily closed or lose their business licenses.