China plans to work closer with other countries as it ups the
ante in the fight against money laundering and terrorism
funding.
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The country, a founding member of the Euro-Asian Group on Combating
Money-Laundry and Financing of Terrorism (EAG), is playing a very
active role promoting cooperation among EAG members, said Ling Tao,
director of the Bank of
China's bureau in charge of countering money laundering.
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The EAG, established in October 2004, also includes Russia,
Ukraine, Belarus, Kyrghizstan and Tajikistan.
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Ling said the country is applying for membership at the Financial
Action Task Force on Money Laundering (FATF), a major
intergovernmental organization launched in 1989 by the Group-7
Summit.
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"We always have an open, pragmatic attitude in multilateral and
bilateral co-operation in the fight against money laundering," he
said.
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On the home front, Ling said China puts priority on improving its
legal system as well as monitoring, analysis and law enforcement
systems.
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Resources will also go towards building a professional team to
fight laundering, which is always linked to other crimes, he
said.
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In China, it is mostly related to smuggling, drug trafficking and
terrorism.
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Some estimates peg the amount of money laundered in the country at
US$20 billion every year.
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However, legal experts said the country's definition of money
laundering is too narrow to deal with increasingly sophisticated
operations.
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To address this problem, the nation's law-making body, the National
People's Congress, set up a team to draft a new law in March
2004.
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Ling, whose bureau co-ordinates anti-money laundering efforts at
the central government, said 23 related government departments have
been mobilized to play a part in the fight.
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The next step will be to enhance inter-provincial cooperation, he
said.
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Banking, securities, real estate and insurance have been marked as
sensitive sectors.
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Law firms, accounting firms and jewellery companies are also in the
list of places that need to be scrutinized, he said.
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The People's Bank of China in 2003 issued regulations on reporting
of suspicious transactions by financial institutions. The
regulations mainly affect banks.
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Ling said similar regulations and monitoring systems will be
developed for other sensitive sectors.
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According to Ling, authorities are paying close attention to key
cities such as Shanghai and Shenzhen and major areas like southwest
China's Yunnan Province and northwest China's Xinjiang Uygur
Autonomous Region.
China Applies to Become FATF Observer
China has applied to the Financial Action Task Force (FATF) to
become an observer, China's central bank the
(PBOC) said Friday.
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China is waiting for the evaluation from the FATF, the most
influential international anti-money laundering organization, after
it sent an inspection team to the country in the middle of this
month, said a PBOC official.
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The country is also preparing to apply for formal membership, the
official said.
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"China is working hard with other countries to fight laundering
with an open mind and practical manner and expects to become a FATF
member," the official said.
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The central bank submitted the application to the FATF in February
this year and PBOC governor Zhou Xiaochuan handed the letter of
commitment to the organization later.
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The country has listed terrorism financing as one of its top
targets in anti-money laundering, he said.
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China has been an initial member of a Europe-Asian group against
money laundering and terrorism financing (EAG) and attended its
first meeting held in Moscow on December 8, the official
said.
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The country will host its second meeting in April next year, he
added.
(Xinhua News Agency, China Daily,?December 25,
2004)