China's progress in strengthening measures to tackle money laundering and terrorist financing

Publication details

Language

English

Country

China

6 October 2021 - Since the 2019 assessment of China’s measures to tackle money laundering and terrorist financing, the country has taken a number of actions to strengthen its framework.

China has been in an enhanced follow-up process following the adoption of its Mutual Evaluation.

3 – Money laundering offence, from partially compliant to largely compliant

8 – Non-profit organisations, from partially compliant to largely compliant

16 – Wire transfers, from partially compliant to largely compliant

18 – Internal controls and foreign branches and subsidiaries, from partially compliant to compliant

29 – Financial intelligence units, from partially compliant to largely compliant

38 – Mutual legal assistance: freezing and confiscation, from partially compliant to compliant

Today, China is compliant on 9 of the 40 Recommendations and largely compliant on 22 of them. It remains partially compliant on 3 Recommendations and non-compliant on 6 Recommendations.

China will remain in enhanced follow-up and will report back to the FATF on progress achieved on improving the implementation of its AML/CFT measures

Follow-Up Report China - 2021

Filename
Follow-Up-Report-China-2021.pdf
Size
809 KB
Format
application/pdf
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Technical Compliance

Ratings which reflect the extent to which a country has implemented the technical requirements of the FATF Recommendations.

China - Follow-up report 2021

R.1 - Assessing risk & applying risk-based approach
LC
R.2 - National cooperation and coordination
C
R.3 - Money laundering offence
LC
R.4 - Confiscation and provisional measures
C
R.5 - Terrorist financing offence
LC
R.6 - Targeted financial sanctions related to terrorism & terrorist financing
PC
R.7 - Targeted financial sanctions related to proliferation
NC
R.8 - Non-profit organisations
LC
R.9 - Financial institution secrecy laws
C
R.10 - Customer due diligence
LC
R.11 - Record keeping
C
R.12 - Politically exposed persons
PC
R.13 - Correspondent banking
LC
R.14 - Money or value transfer services
LC
R.15 - New technologies
LC
R.16 - Wire transfers
LC
R.17 - Reliance on third parties
LC
R.18 - Internal controls and foreign branches and subsidiaries
C
R.19 - Higher-risk countries
C
R.20 - Reporting of suspicious transactions
LC
R.21 - Tipping-off and confidentiality
LC
R.22 - DNFBPs: Customer due diligence
NC
R.23 - DNFBPs: Other measures
NC
R.24 - Transparency and beneficial ownership of legal persons
NC
R.25 - Transparency and beneficial ownership of legal arrangements
NC
R.26 - Regulation and supervision of financial institutions
LC
R.27 - Powers of supervisors
LC
R.28 - Regulation and supervision of DNFBPs
NC
R.29 - Financial intelligence units
LC
R.30 - Responsibilities of law enforcement and investigative authorities
C
R.31 - Powers of law enforcement and investigative authorities
C
R.32 - Cash couriers
LC
R.33 - Statistics
LC
R.34 - Guidance and feedback
LC
R.35- Sanctions
PC
R.36 - International instruments
LC
R.37 - Mutual legal assistance
LC
R.38 - Mutual legal assistance: freezing and confiscation
C
R.39 - Extradition
LC
R.40 - Other forms of international cooperation
LC

C = compliant   |   LC = largely compliant     |   PC = partially compliant   |   NC = non-compliant   |   NA = not applicable

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