Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING
Xiaomi Breaks Into Top Three Smartphone Brands in Latin America for First Time as Huawei Falls
South Korean EV Battery-Maker’s Misconduct ‘Extraordinary’ Says U.S. Trade Agency
Could ByteDance Develop a Clubhouse-Style App for China?
LATEST
News App Qutoutiao Narrows Losses Despite Revenue Drop
Could ByteDance Develop a Clubhouse-Style App for China?
South Korean EV Battery-Maker’s Misconduct ‘Extraordinary’ Says U.S. Trade Agency
Xiaomi Breaks Into Top Three Smartphone Brands in Latin America for First Time as Huawei Falls
Trip.com Reports Quarterly Profit Despite Revenue Decline
India Tries to Attract Tesla with Incentives to Lower Production Cost
Taiwan's Acer says component shortage squeezes PC makers
Trending in China: Why Has Japanese Director’s Documentary on Huawei Gone Viral?
Pinduoduo Doubles Sale of Agricultural Goods in 2020 Due to Covid-19 Lockdowns
BAIC BluePark to Debut First Electric Vehicle Powered by Huawei Lidar Technology in April
Baidu Completes Registration of New Electric Vehicle Venture with Geely
China beats U.S. in patent filings for second straight year
Baidu to Help Chinese Energy Giant’s Push for Digitalization
Tencent Cloud Plans First Mideast Data Center in Bahrain
Chinese Carmaker Dongfeng Pilots Robotaxi Service in Wuhan
Trending in China: China Shows Love For Beijing-Born Chloe Zhao and her Historic Golden Globes Win
Tencent Invests in Tim Hortons as Canadian Coffee Chain Embraces Digitalization
ByteDance Seeks to Grow Online Education Business with New Recruitment Drive
Pinduoduo Faces Work Culture Questions After Staff Deaths
Investment Gains Boost Tesla Challenger Li Auto to First Profit
China Needs to Fight Nonfinancial Money Laundering, Global Body Finds

By Peng Qinqin and Han Wei / Apr 19, 2019 02:16 AM / Finance

Photo: VCG

Photo: VCG

China needs to step up oversight of online lenders, property agencies and other nonfinancial organizations to plug gaps in the fight against money laundering and terrorism financing, a global watchdog group said Wednesday.

The Paris-based Financial Action Task Force (FATF), an intergovernmental organization that sets standards and promotes countermeasures against money laundering, terrorist financing and other financial crimes, issued the finding in a report. In February, the agency approved China’s performance in its fourth round of anti-money laundering evaluation, citing “the foundation of a sound system.”

The report details the FATF’s assessment of inadequacies in China’s efforts to thwart financial crimes.

“While the People’s Bank of China (PBOC) has a good understanding of how its financial institutions could be abused by criminals and terrorists, it has little to no understanding of the risks facing nonfinancial businesses and professions,” the FATF said. “Hiding the persons who ultimately own or control a legal entity is facilitated by fundamental legal shortcomings and effectiveness issues. This deficiency also notably affects efforts to address corruption.”

The organization suggested that China should extend preventive measures, including reporting of suspicious transactions, to designated nonfinancial businesses and professions and online lending institutions and should introduce requirements on domestic politically exposed persons.

The PBOC said in a statement it appreciated the FATF’s affirmation of China’s anti-money laundering efforts and advice for improvements. But the bank also noted that some conclusions in the report reflect differences in the judiciary system and culture of China, as well as limited time to carry out the assessment.

Related: China Needs to Do Better Collecting Data on Money Laundering, Agency Says

Share this article
Open WeChat and scan the QR code