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Non-financial institutions to be held accountable

Global Times

By Global Times Published: Jun 02, 2021 01:58 AM

Non-financial institutions including real estate brokerages and traders of precious metals will be held accountable for money-laundering activities, according to a draft proposal for the revision of China's anti-money-laundering law that is seeking public input.

The public have until June 30 to submit their suggestions for the draft proposal, published by the People's Bank of China (PBC), on Tuesday.

Under the current law, only financial institutions such as banks are held accountable for money-laundering activities. The draft calls for non-financial institutions including real estate sales and brokerage companies and agencies, traders and trading houses of precious metals to be held equally accountable.

The amendment to the 2007 anti-money laundering law was included into the law review agenda of the National People's Congress Standing Committee this year.

Non-financial institutions and individuals would be required to assist with client due diligence and anti-money-laundering probes by regulators and to make due declaration of large-sum transactions, according to a statement issued on the PBC's website on Tuesday.

The Chinese central bank said in the statement that loopholes in the current law have hindered anti-money-laundering enforcement. Punishment for illegal activities and requirements for certain non-financial industries are lacking and incomplete.

The scope of anti-money-laundering has expanded to include counter-terrorism financing and combating proliferation financing, and an extension of regulatory oversight is seen as a necessity for curbing financial risks.

The amendment will also help China's financial sector opening-up as a revised anti-money-laundering law is better aligned with global governance, the statement said.

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