China preps for clampdown on financial crimes with new version of anti-money-laundering law
- China is preparing a revision of its law against money laundering, part of a larger effort to control financial crimes
- New law would expand scope of scrutiny to include laundering through cryptocurrency and coincide with periodic review from international body
China’s lawmakers are revamping the country’s law on money laundering to bolster a crackdown on illegal activities and address cryptocurrency-related risks, a measure that will also align its practices with global standards as it faces stricter international scrutiny.
“It’s necessary to root our anti-money-laundering law in the actual needs of our country and integrate into new [international] demands,” said Pan Gongsheng, governor of the People’s Bank of China, according to state news agency Xinhua. “[We need to] seize the moment to improve the law.”
These changes will expand the coverage of money laundering channels [to include] digital currencies and bitcoin
“These changes will expand the coverage of money laundering channels [to include] digital currencies and bitcoin, as well as the [medium of laundering through] non-financial institutions, which enhance the safety of China’s financial system and national financial security,” said Dong Jinyue, principal economist at BBVA Research.
Hong Kong’s position as the cryptocurrency hub in Asia should also be protected, Dong said.
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Is cryptocurrency too risky for China?
“As long as cryptocurrency is not used as a way to launder money or [support] other illegal activities in Hong Kong, its position should be sustained,” he said.