The People’s Bank of China announced on the 1st the “Anti-Money Laundering Law of the People’s Republic of China (Draft Revision for Public Comments)” and openly solicited comments from the society. The draft opinion specifies that specific non-financial institutions should fulfill their anti-money laundering obligations with reference to the relevant requirements of financial institutions when engaging in specific businesses.
The People’s Bank of China introduced that the situation of anti-money laundering is constantly changing, and there are gaps and shortcomings in the relevant provisions of the existing anti-money laundering law. For example, the narrow scope of the types of money laundering predicate crimes, the rough provisions of regulatory penalties, and the imperfect anti-money laundering system of specific non-financial industries have restricted the effective implementation of anti-money laundering work.
To this end, the draft opinion clarifies the responsibility for money laundering risk assessment, emphasizes that specific non-financial institutions subject to anti-money laundering obligations should take corresponding anti-money laundering measures based on the money laundering risk status of the industry, requires financial institutions to establish risk management measures based on the money laundering risk status, conduct customer due diligence based on the risk and take corresponding measures.
The draft opinion specifies that specific non-financial institutions are: real estate development enterprises or real estate intermediaries that provide housing sales and brokerage services; accounting firms that are entrusted to hold assets or accounts for clients, raise funds for enterprises and act as agents for buying and selling business entities; precious metal trading venues and precious metal dealers that engage in spot trading of precious metals; and other institutions that are determined by the competent anti-money laundering administrative department of the State Council in conjunction with relevant departments of the State Council to be in need of anti-money laundering obligations based on the money laundering risk status.
In addition, the draft opinion improves the provisions of anti-money laundering investigation, expanding the subject and scope of investigation, expanding the subject of anti-money laundering investigation to the city-level dispatch of the State Council’s administrative department in charge of anti-money laundering, and including specific non-financial institutions in the scope of investigation. At the same time, the anti-money laundering administrative penalties have been enhanced to be punitive.
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