People’s Republic of China: Financial Sector Assessment Program-Technical Note on Anti-Money Laundering/Combating the Financing of Terrorism

International Monetary Fund

No 2025/302, IMF Staff Country Reports from International Monetary Fund

Abstract: This Technical Note explores anti-money laundering/combating the financing of terrorism (AML/CFT) in China. China faces relatively lower money laundering/terrorism financing (ML/TF) threats from abroad with a higher risk of domestic criminal proceeds being transferred overseas. The authorities have taken positive steps to update the supervisory ML/TF risk assessment methodology and the completion of the updated assessment should be expedited. While mechanisms are in place for collaboration between the Anti-Money Laundering Bureau and prudential supervisors, there is a need for an increased focus on AML/CFT considerations as part of fit and proper assessments. Banks have made progress to enhance the effectiveness of their AML/CFT preventive frameworks, with the authorities noting that some smaller payment service providers continue to struggle with compliance with AML/CFT requirements. While the issuance and transaction of crypto assets is prohibited in China, crypto assets can be accessed through circumvention of the prohibition or through illicit mechanisms. China is actively monitoring the use of crypto assets and, in order to safeguard financial integrity, should continue to pay close attention to the illicit use of crypto assets, circumvention of the prohibition and adoption rates.

Keywords: IMF staff; anti-money laundering; financing of terrorism; staff team; sector assessment; Anti-money laundering and combating the financing of terrorism (AML/CFT); Financial sector stability; Financial Sector Assessment Program; Money laundering; Terrorism financing; Global; Asia and Pacific; Southeast Asia; East Asia; North America; Europe (search for similar items in EconPapers)
Pages: 23
Date: 2025-11-14
New Economics Papers: this item is included in nep-inv
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