PBOC unit to fight money laundering
China's central bank is setting up an anti money-laundering department in a move that will raise the profile of its fight against financial crime.
The People's Bank of China is expected to have the department working in tandem with domestic commercial banks and the legal system by next year.
Bank spokesman Wei Gejun said: 'The department is not yet set up but we are moving in this direction.'
A centre for monitoring the movement of suspicious funds has been set up in the bank's payments and settlements office, according to the Business Post.
Late last year, the central bank set up a top-level group under the direction of deputy governor Shi Jiliang. The State Council has another senior-level taskforce working on the same issues.
The United States has been pushing for greater global co-operation in cutting off funds of terrorist organisations following the September 11 attacks.
China has responded positively to these efforts, and senior US officials have heaped praise on Beijing for its co-operation.
While China is eager to be seen helping the US drive against terrorism, it is also keen to stem widespread corruption and tax evasion.
The Beijing authorities added money-laundering to the criminal code in 1997 and required depositors to use their names instead of numbers on bank accounts.
However, analysts said there were still loopholes in the banking system, such as the proliferation of fake identification documents.
The reliance on cash transactions also hampers the mainland's fight against money-laundering.
