China
China has been an EAG member since its inception in 2004. The basic AML/CFT law was put into effect on January 1, 2007. China has a financial intelligence unit operating as part of the People’s Bank of China. A FATF evaluation of China with EAG participation took place in November 2006. In keeping with the recommendations of the mutual evaluation, China has passed the necessary legislative amendments. As a result, the 9th EAG Plenary approved a decision to remove China from the intensive monitoring list. China is also a FATF member.
China has made concrete progress to correct deficiencies in its criminalization of ML/FT, and enhance its implementation of preventative measures in the financial sector.
Financial Intelligence Unit – the Anti-Money Laundering Bureau of the People’s Bank of China
Overview
China’s FIU is located in the People’s Bank of China (PBC). Due to existing institutional divisions, the FIU function has been divided between two units that are contained within the single overarching authority of the PBC—the Anti-Money Laundering Bureau (AMLB) and the China Anti-Money Laundering Monitoring and Analysis Center (CAMLMAC). The heads of the AMLB and CAMLMAC both report to a single deputy governor.
Goals and tasks
The PBC’s AML role and functions, including its designated FIU function, are set out in the AML Law with more detailed requirements being set out in rules that are issued by the PBC (articles 8 and 10 AML Law). All FIU functions must be carried out in accordance with the AML Law and related rules, or the laws covering the operations of the PBC.
The AMLB organizes and coordinates China’s AML affairs, and carries out administrative investigation, dissemination and policy oversight. Decisions about whether to carry out an administrative investigation into a Suspicious Transition Report (STR) or whether to disseminate an STR to the Ministry of Public Security (MPS) or other law enforcement agencies are made pursuant to articles 23 to 26 of the AML Law. The AMLB carries out its activities directly and through its regional and local PBC branches.
The CAMLMAC specializes in data collection, processing and analysis. Its function is to receive and analyze STRs and Large-value Transaction Reports (LVTs), and transfer STRs to the AMLB after its analysis. CAMLMAC acts as the central point of contact for foreign FIUs (article 10 AML Law).
Organization Structure
The AMLB was established in October 2003. The current Director General of AMLB is Dr. Tang Xu. There are 4 divisions and 32 staff in the head office of the AMLB.
CAMLMAC was established in April 2004. The current Director General of CAMLMAC is Mr. Wang YanZhi. At present there are 13 departments and 77 employees in CAMLMAC.
Regional and local PBC branches have administrative jurisdiction over a specified geographical region, such as a province or large urban area. Regional and local PBC branches collect, analyze STRs, carry out administrative investigations into STRs and decide whether to disseminate STRs to local law enforcements within their administrative jurisdiction. At a provincial level, there are 36 AML divisions and nearly 300 staff. The sub-provincial branches of the PBC have also set up AML units or specified full-time AML personnel since 2004. There are now more than 4000 full-time and part-time AML staff in the whole PBC system.