On 8 Nov. 2024, the Standing Committee of the National People’s Congress (China’s top legislature) passed the newly amended Anti-Money Laundering (AML) Law of the People’s Republic of China, which came into effect on 1 Jan. 2025.
The newly revised AML Law consists of 7 chapters and 65 articles. The revision mainly clarifies the applicable scope of the Law, improves the definition of AML, strengthens AML supervision and management, and further refines the provision on AML obligation, AML investigation system and legal liabilities.
Highlights of the AML include:
- AML refers to the adoption of relevant measures in accordance with this Law, which aims to prevent and curb money laundering activities in various ways to disguise and conceal the source and nature of criminal gains and the proceeds thereof, and related criminal activities. The Law also applies to the prevention and suppression of terrorism financing activities.
- Financial institutions and certain non-financial institutions established within China are required to establish AML internal control systems, conduct customer due diligence, maintain customer identity information and transaction records, and implement reporting systems for large transactions and suspicious transactions.
- Customer identity information and transaction information obtained through the performance of AML or obligations, as well as AML investigation information and other AML information, must be kept confidential. Such information may not be disclosed to any entity or individual unless required by law.
- Judicial authorities may use customer identity information and transaction information obtained under this Law only for AML-related criminal proceedings.
Photo by Alexander Mils on Unsplash
Contributors: CJO Staff Contributors Team
