Global Task Force: While There Are Areas of Improvement, Singapore Has Strong Framework To Combat Money Laundering, Terrorism Financing, Says Financial Action Task Force (FATF)
28 Sep 2016
International money triad organization: Individual areas can still improve China's strong anti-money laundering and anti-terrorist financing framework
Yuan-wen
International anti-money laundering agency Financial Action Task Force on China yesterday released evaluation report. This is the new release of the task force recommendations in 2012 on China's first assessment. The report notes that China has made in various fields effective results.
Framework of the fight against money laundering and terrorist financing act strong, but in individual areas there is still room for improvement.
International anti-money laundering agency Financial Action Task Force (Financial Action Task Force, referred to as the FATF) released yesterday on China's assessment report. This is the new FATF recommendations released in 2012 on China's first assessment.
Ministry of the Interior, the Ministry of Finance and the Monetary Authority of Singapore yesterday jointly issued statement noted that FATF in 2008 and carried out an assessment compared to Singapore in the field of anti-money laundering and anti-terrorist financing made significant improvement.
FATF report pointed out that China has made in various fields effective results. For example, China has a strong regulatory framework for supervision of the financial sector strong. Our timely financial intelligence into the law enforcement process, effectively assisting the investigation into money laundering and predicate offenses acts (predicate offence) of.
However, FATF also pointed out that our country can make improvements in some areas. For example, China should follow-up investigation more complex cross-border money laundering crimes. In this regard, the Commercial Affairs Department's financial intelligence unit will enhance the ability to analyze complex data. The report also said that, in addition to involving shell companies to send money fraud, the prosecution of offenses abroad less.
FATF also suggested that China should strengthen the transparency of corporate legal beneficiary information; strengthening stones and metals dealers anti-money laundering and combating terrorism financing mechanism. Currently the company has all the relevant provisions of pawn, jewel metals industry cash transactions have due diligence requirements.
In addition, FATF recommendations to strengthen the regulation of non-financial areas such as accounting firms and corporate service providers, financial institutions and strengthen the understanding of risk and monitoring. It is understood that the field of accounting and corporate services have been related to criteria.
FATF believes that China's lack of criminal prosecutions and convictions in the area of terrorism financing. However, China noted that, through the "Internal Security Act" to combat the financing of terrorism, in the case of our country are not required to prosecute has dealt with 17 cases. Recently, six people charged and convicted under the Terrorism (banned funding) Act, but this occurred after FATF assessment therefore not taken into account.
FATF in between last November 17 to December 3 date in the country to conduct field assessment.
The HKMA has in recent years stepped up supervision of financial institutions. During 2010-2012, the HKMA conducted over 100 site visits, and in the period 2013 to 2015, it increased to about 600 times.
Yoshimasa law firm (TSMP Law Corporation) joint managing partner of Zhang Zhi Ying said in an interview: "Singapore to find a balance between strict regulation and over-regulation both we always have room for improvement, but we should not over-regulate. and to dispel the enthusiasm of legitimate businesses. "
She also pointed out that, FATF has not yet evaluated, Hong Kong, China and the United States, if these countries can reference evaluation report will provide more information.
Ruan Ling OCBC Group president follow the law and regulations, as these criminal activities have become increasingly complex, financial institutions should be vigilant in order to detect unusual behavior and to respond.
Boardroom Director Corporate Services Li Guanglong believe that this report reminds the industry to step up efforts to enhance the anti-money laundering, to ensure that will not be left behind when the authorities to strengthen supervision.
In May this year, Ruishi Rui Italian banks for breaching anti-money laundering regulations, was the HKMA revoked license, was fined 13.3 million yuan. China after authorities announced that it had seized a total value of 200 million 40 million yuan of bank accounts and assets, naming the more banks there are omissions in the anti-money laundering work. However, these actions have not been included in this assessment.
FATF believes that China's lack of criminal prosecutions and convictions in the area of terrorism financing. However, China noted that, through the "Internal Security Act" to combat the financing of terrorism, in the case of our country are not required to prosecute has dealt with 17 cases. Recently, six people charged and convicted under the Terrorism (banned funding) Act, but this occurred after FATF assessment therefore not taken into account.