Banking News
- Banking laws toughened
Date: 13-Jun-2007 Sources: (Shenzhen Daily)
CHINA has beefed up its rules against terrorist financing, State media said yesterday, describing it as an important step towards becoming a member of a global anti-money laundering task force.
Any transaction suspected of being linked to terrorist activity must now be reported to banking authorities within 10 days, the China Daily reported, citing the central bank.
The new laws, which came into effect Monday, also require financial institutions to improve the collection of data about their customers and other security measures, Xinhua reported.
Transgressors will face financial penalties, suspension or having their business licenses revoked, the report added.
'The regulation could help cut the capital chains of terrorist organizations and promote international cooperation in anti-terrorist financing efforts,'Xinhua quoted Zhao Peng, a senior official with the Industrial and Commercial Bank of China, as saying.
The move comes as China tries to win membership of the international anti-money laundering body the Financial Action Task Force, which will vote on China's entry this month.
Xinhua said China was hoping the new rules would boost its chances of becoming a member of the task force.
China has been seen as an avenue for global illicit cash flows, with government officials saying in 2003 that the money laundered annually in the country's financial system was US$24 billion.
Large-scale money laundering is seen much easier in China than in many other countries because the economy remains largely cash-based.
Modern means of payment, such as cheques and credit cards, which make money flow easier to monitor, are not as widely used as in many other countries.
China has stepped up its efforts to limit money laundering in recent years, setting up special task forces charged with tracking suspicious money and toughening legislation.
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