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Location:

China

Date:

beginning 01/06/2017

The People’s Bank of China Anti-Money Laundering Bureau (PBoC AMLB)  is working, via UK Foreign and Commonwealth Office (FCO) funding, with GovRisk experts, who have provided technical support in light of the revised Financial Action Task Force (FATF) standards, covering both ‘Technical Compliance’ & ‘Effectiveness’. Current work has included every competent authority for Anti-Money Laundering/Combatting the Financing of Terrorism (AML/CFT) in China, and opened a dialogue on a subject of high importance to UK-China relations.


GovRisk is working with the Chinese government in promoting a predictable and stable legal environment, which is a crucial priority as it would assure international investors that all business operations in the country are subject to ubiquitous and fair laws. Despite China’s efforts to provide a level playing field for international competition, the Country’s financial sector continues to provide, perhaps, the strongest deterrent to inward investment. The FATF Mutual Evaluation Report (MER) is used by many as a measure of financial risk in a jurisdiction; therefore it is essential that China obtains a positive MER in order to maintain and improve its access to correspondent banking services and foreign currency clearing.


A poor MER, combined with the well-publicized and widespread allegations of money laundering that have been levelled at the country’s four largest banks, would leave a damaging reputation for China on the global financial market. This would cause capital, both from China and abroad, to be invested elsewhere, depriving the country and its citizens of the socio-economic benefits that would be associated as China becomes an increasingly global economy. Conversely, achieving a positive MER would provide an excellent opportunity for the PBoC to demonstrate that it is making progress in AML/CFT and prove to the international community that China is a low risk business destination. By achieving a successful MER China can send a clear message that it is committed to achieving the highest possible standard of AML regulation.

 
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