A Shanghai court yesterday sentenced four people to jail for money laundering - the first case since China's money laundering laws were introduced this year.

Pan Rumin was sentenced to two years in prison and fined 60,000 yuan (US$7,991) for money laundering. Pan's three companions Zhu Suzhen, Li Daming and Gong Yuan were sentenced to between 15 and 16 months imprisonment and fined 20,000 yuan each by the Hongkou District People's Court.

The four had laundered more then one million yuan from financial cheating, according to the Shanghai headquarters of the People's Bank of China.

The Shanghai branch of the Industrial and Commercial Bank of China suspected money laundering was involved in 27 personal accounts and reported this to police on July 20, last year. Police in Hongkou took over the case on July 24 and arrested the four suspects.

This is the first case of its kind after China introduced money laundering laws this year.

Before the legislation, people involved in money laundering were charged with other crimes such as operating illegal businesses or causing disorder to financial markets.

China is improving its legislation to fight money laundering.

The National People's Congress passed the country's first anti-laundering law in October 2006.

The country's anti-laundering laws relating to financial institutions including banks, stock brokers and insurers also took effect in January.

(Shanghai Daily October 23, 2007)