Rules on control of terrorism financing requiring banks to report any
suspicious transactions to the financial authorities were released with
immediate effect yesterday.
Any deal suspected of being related to terrorism shall be reported within 10
days to the China Anti-Money Laundering Monitoring and Analysis Center, the
special arm of the central bank for fighting money laundering.
related to terrorist organizations and activists listed by Chinese organizations
and the United Nations Security Council shall be made regardless of the amount
of money or value of assets, the People's Bank of China said on its website.
Financial institutions face penalties if they fail to follow the rules. They
could have their business suspended or license revoked.
Board members, high-ranking managers or other staff directly involved in such
crimes can have their professional licenses revoked and be barred from working
in the industry.
The rules are an extension of the country's anti-money-laundering law, which
was enacted last year and took effect this year.
That law marked a decisive step for China to join the
Financial Action Task Force (FATF) - the 33-member inter-governmental body that
promotes and coordinates global fight against money laundering. The FATF
completed its assessment of China's entry late last year and is expected to vote
on it this month.