China China

New Documents

The Hong Kong Monetary Authority published a thematic review of authorized institutions’ transaction monitoring systems which highlights the use of artificial intelligence to optimize performance.

China’s Ministry of Foreign Affairs announced countermeasures against U.S. companies for their involvement in arms sales to Taiwan.

News

Enforcement Actions

The Hong Kong Securities and Futures Commission suspended Andy Wong Yeung, the former director and responsible officer in charge of overall management oversight of City International Futures (Hong Kong) Limited, until Nov. 8, 2024.

The Hong Kong Monetary Authority disciplined the North Point, Hong Kong-based chapter of the foreign exchange company under the Payment Systems and Stored Value Facilities Ordinance.


Important Facts

  • The U.S. State Department labels China as a major money laundering country. The main sources of criminal proceeds include corruption, drug and human trafficking, smuggling, economic crimes, intellectual property theft, counterfeit goods, crimes against property, and tax evasion. Common methods laundering are bulk cash smuggling, trade based money laundering, the use of shell companies, invoice manipulation, high-value asset purchases, investing illicit funds in lawful sectors, gaming, and exploiting formal and underground financial systems and third- party payment systems.  Chinese authorities have also identified illegal fundraising activities, cross-border telecommunications fraud, weapons of mass destruction proliferation finance and other illicit finance activity linked to North Korea. In 2020, China increased regulatory scrutiny of the financial sector and made improvements to its anti-money laundering framework, though serious transparency issues remain, particularly in the context of international cooperation.  China has comprehensive know-your-customer and suspicious transaction reporting regulations that require financial institutions to determine and monitor the risk levels of customers and accounts, including foreign politically exposed persons.
-Source: 2021 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 9 High : 0
Largely Compliant : 22 Substantial : 3
Partially Compliant : 5 Moderate : 4
Non-Compliant : 4 Low : 4

Pakistan's technical compliance was re-rated in a Nov. 29, 2022 follow-up report

BASEL i

Rank : 94/110
Score : 6.7/10

TRANSPARENCY INTERNATIONAL i

Rank : 78/179
Score : 42/100

Tax Justice Network i

Rank : 25/133
Score : 60/100