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China "Root Out Money Laundering"

Posted July. 08, 2002 22:38,   


In next January, People`s Republic of China is planning to set up an organization for money laundering prevention in their Central Bank, People`s Bank of China. This is a step to eradicate corruption among senior government official.

On July 7th, the Chinese media announced that by entry into World Trade Organization (WTO) and in order to expose funds linked with corruption and crime, money laundering prevention office would be setup under People`s Bank of China.

The money laundering prevention office will monitor large transactions and if a suspicious transaction occurs, they will report it to Foreign Exchange Department and Public Security Department. The office will assist them in investigation.

Within next year, similar organizations would be install in general banks in order to coordinate their anti-money laundering efforts. In corporate with these measures, the Chinese government plans to pass a Money Laundering Prevention Act to increase the penalties for money laundering crimes. These actions by the Chinese government is due to increase in money laundering crimes by senior government officials under names of their families and relatives in the banks such as the arrest of Chi Hua-gui, ex-secretary of Dong pang City Council in Hainan province.