China Central Bank Creates AML Regulations For Online FIs

The People’s Bank of China has announced new anti-money laundering (AML) and counter-terrorism financing regulations for online financial institutions (FIs). According to Reuters, the new rules — which take effect on Jan. 1 — order institutions to set up internal control mechanisms for preventing money laundering and terrorism financing, following know your customer (KYC) rules, and reporting large and suspicious transactions quickly.

The country’s central bank added that it would improve its own supervision process for fighting money laundering and terrorism financing.

China isn’t the only region dealing with these issues. Earlier this year, it was revealed that Iceland’s efforts over the last decade to focus on crimes that were associated with the financial crisis around the globe has hurt its law enforcement of money laundering and terrorism financing. The report comes after a group of Icelandic thieves recently stole 600 computers used to “mine” bitcoin in what local law enforcement called the biggest theft in the nation’s history.

Following scandals at several European lenders, the European Central Bank (ECB) announced last month that it wants the European Union (EU) to step up enforcement of AML rules. To that end, the bank has recommended that the bloc make a “single agency” for the task as the ideal solution. The European Commission (EC) is even planning to provide EU states with guidelines for handling national schemes to sell passports and residency permits to wealthy foreigners.

Late last year, the Australian Senate passed legislation extending AML and counter-terrorism financing regulation of digital currency exchanges. Government officials had previously blamed the growth in online banking, and digital currencies like bitcoin, for the huge increase in organized crime in the country’s financial sector. In fact, the government estimated that money laundering and other financial crimes committed by organized gangs is costing Australia $28.43 billion each year.


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