China’s UnionPay combats money laundering as yuan goes global

China UnionPay, the national bank card association, has beefed up its measures to combat money laundering as spending by mainland tourists abroad soars and the yuan comes into wider use ­internationally.

The company recently ­ordered its subsidiaries and overseas branches to conduct a thorough study of anti-money-laundering rules in other countries, assign specialised officers to foil money-laundering attempts and intensify monitoring of suspicious deals, according to an internal document seen by the South China Morning Post.

In the document, UnionPay said it would beef up its anti-money- laundering capabilities to ensure smooth operation of its overseas businesses.

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“Cross-border payment has become one of the tools criminals use to conduct money laundering,” it said. “Automatic teller ­machines, point-of-sale [POS] terminals and online payments are used by them to illegally transfer money.”

The memo was distributed to UnionPay’s subsidiary that deals with international businesses and its online payment unit after regulators from European countries visited mainland banks’ overseas branches to learn about their anti-money-laundering systems.

A press officer with UnionPay International said combating money laundering was a main focus for the company as it ­expanded overseas.

Hao Jinghua, a deputy director of the anti-money-laundering ­bureau at the People’s Bank of China, said last month that money laundering and financing of terrorist groups were growing concerns for Beijing due to China’s increasing role in the world economy and global financial markets.