BIZCHINA / Center
Central bank set to flush out money laundering
(China Daily)
Updated: 2006-11-16 08:41
China is tightening the screw on money laundering by requiring its
financial bodies to report any large or suspicious transactions.
According to new rules released by the People's Bank of China on Tuesday,
financial institutions such as banks and insurers will be required to
report large and suspect transactions to anti-money laundering
authorities.
The new rules, which come into effect next March, came on the heels of
the country's first anti-money laundering law, which was passed last
month and is effective in January.
The new rules set out specific definitions of large and suspect
transactions that must be reported to the Anti-Money Laundering
Monitoring and Analysis Centre, an office under the central bank.
A single transaction exceeding 200,000 yuan (US$25,400) or a transaction
with accumulated value of 200,000 yuan within a day are defined as large
transactions.
For foreign currency, the sum is US$10,000.
As for suspicious transactions, securities dealers, futures brokers and
fund management companies should report if they notice idle accounts
being suddenly reactivated and large transactions taking place over a
short period, Xinhua News Agency reported.
Also, commercial banks, credit unions, postal savings institutions and
trust companies have also been warned to look out for sudden closure of
accounts following large transfers, loans paid back ahead of schedule and
transactions that do not tally with clients' financial status.
1 2
(For more biz stories, please visit Industry Updates)
Related Stories
� China to join int'l anti-money laundering organization
===========================================================================
� Regulations combat money laundering
===========================================================================
� Money laundering law adopted
===========================================================================
Learn Mandarin online
