China has taken a step forward in the country’s efforts to combat money laundering and financing of terrorism.

The country completed its fourth round of mutual evaluations with the Financial Action Task Force (FATF), an intergovernmental standards-setter on money laundering and other economic crimes on Thursday.

The plenary of the FATF concluded that “China has the foundation for a sound system to tackle money laundering and terrorist financing, but should strengthen its financial intelligence unit and use of financial intelligence,” the organization said on its website.

The finding comes as a relief to China, whose most significant challenge during this round of evaluations was proving its money laundering controls were in line with global standards, a domestic regulator told Caixin.

China became a member of the Paris-based FATF in 2007 after completing two rounds of mutual evaluations and accepting a third. The country’s first money laundering law was enacted that same year. The FATF is expected to release its full report on the latest China evaluations in April.

The FATF conducts peer reviews of each of its members on an ongoing basis to assess their implementation of its recommendations to prevent criminal abuses in their financial systems.

The country’s banking regulator last week issued stricter rules targeting banks’ money laundering and counter-terrorist financing practices, outlining requirements for banks to conduct stricter background checks of shareholders and executives, as well as track capital sources.

Related: China Imposes Stricter Anti-Money Laundering Rules