China has had success in cracking down on money laundering. We review a new report released by the State Administration of Foreign Exchange, that documents the success of China's anti-money laundering act.
China has achieved tremendous success in cracking down on money-laundering. By the end of June this year, more than 100 cases violating foreign exchange regulations have been investigated involving US$57 million. Another 100 cases are still under investigation amounting to a total of US$470 million.
Lu Zheng is an official with China's State Administration of Foreign Exchange. He says, the annual report is China's first one against money laundering in the field of foreign exchange. It helps provide stability for China's financial industry.
"The issuing of the report is very helpful in maintaining Chinese financial order and purifying economic environment because it truly reflects the anti-money laundering condition in China. More important, the report raises people's awareness of money-laundering's hazard to the public."
The State Administration of Foreign Exchange is also strengthening its cooperation with financial institutions and public security departments to establish a well-managed and efficient anti-money laundering system.
Lu Zheng explains with this new system, money launderers will find it difficult to evade prosecution and punishment.
"Any financial institution that finds out extremely large sum of money or suspectable funds in the process of managing foreign exchange business should report the information to the State Administration of Foreign Exchange or its provincial-level branches. The doubtful one will be feedbacked to local branches for further examination."
He says the advanced information system will make the process of examining potential money-laundering cases much more efficient.
In addition to the domestic cooperation, the Administration is also intensifying communications with the international community. Since 2003, SAFE has invited officials and experts from the World Bank, International Monetary Fund, Asian Development Bank and other financial institutions to exchange useful information.
(CRI November 9, 2004)
