China’s Big Banks Pay Price Abroad for Neglecting Fight Against Money Laundering

(Beijing) — At their annual meeting in February, People’s Bank of China officials pledged a tougher fight against money laundering.

A few days later, the China Banking Regulatory Commission complemented that pledge by urging Chinese banks with overseas operations to intensify the battle against money laundering and terrorism financing.

Behind this clarion call by Beijing’s bank supervisors was an unnerving realization that some of the nation’s biggest banks had left themselves vulnerable to anti-money-laundering sweeps by regulators abroad.