| As the process of globalization has continued, the vicious trend of current international crime, which is characterized with drug trade, organized crime, corruption and terrorism, has influenced most countries. Since 1960s, the situation of drug abuse and illicit traffic has been rapidly deteriorating. During the early 1980s, it had reached unprecedented dimensions. Since 21st century, drug trade has become the severest and the most prominent criminal phenomenon. After the cold war, the key trend in the global development of organized crime has been diversification. Transnational organized crime is the severest challenge that the international community must face in the 21st century. In the after-cold-war era, the world has become relatively disorder, which gives corruption new opportunity and new incentive. Currently, every country has individual corruption and no country is free from corruption. The most important characteristic of corruption is transnational and international, which had caused serious harm to political, economical and cultural tradition in many countries. Many conflicts arouse due to the tremendous changes in the international political, economical and social circumstances after the Second World War, especially after the cold war. As the most extreme type of such conflicts, terrorist activities has been more and more and has been increasingly a malignant tumor that threatens humankind. Close cooperation between criminal and terrorist organizations makes both organizations more dangerous and is making organized criminal and terrorist organizations increasingly difficult for law enforcement to combat.Increasingly expand of global scope of money laundering activities has close relationship with vicious development of predicate crimes which need money laundering. Drug trafficking, organized crime and corruption all generate large proceeds, while "the number and seriousness of acts of international terrorism depend on the financing that terrorists may obtain." In other words, money laundering activities are the direct derivative of transnational crime. Once the proceeds that had been laundered go back to criminals, the criminals can not only enjoy the fruits of the crime, but can use these proceeds to maintain the operation of criminal organizations and to further future criminal activities. In this sense, money laundering facilitates the commitment of other crimes and drives the vicious development of transnational crime.In the history of criminal policy, the fundamental start-point of criminal policy had always been to contain crime by criminal penalty. Key value object of modern criminal policy was to contain the volume of criminal behavior and the viciousness of crime. "By traditional and austere recognition, if criminal penalty can increasingly strengthen its deterrence, crime shall logically efficiently be contained. If society can efficiently contain the factors that facilitate crime, crime rate shall logically decline accordingly. However, crime in modern society did appear the completely opposite trend, i.e. the more rigorous did criminal penalty become, severer was the viciousness of crime, wider did the scope of criminal penalty become, more fields were involved in crime, and although the factors that facilitate crime was controlled gradually, crime increased in inverse ratio." In other words, pointed principle of traditional criminal policy could not deal with the globalization of crime any longer.Based on concern about the spread of transnational crime, as early as 1980s, international community had proposed that the orientation of criminal policy should be converted and the approach of criminal policy should be changed. In 1988, with the initiatives of the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (the Vienna Convention), the policy envision to contain predicate crime through controlling hypogyny crime received an enthusiastic response in international community. Accordingly, to prevent and combat serious criminal offenses by controlling and fighting money laundering activities became major breakthrough point through which most sovereign nations changed their inherent criminal policy. In other words, anti-money laundering strategy which began with the system design of the Vienna Convention has become guideline of thought and technical paradigm followed by most sovereign nations which planned to change their inherent criminal policy.Since the reform and opening-up, China had gone through the phenomenon that the situation of public order obviously deteriorated during specific period and in specific geography. Although the factors that leaded to the deterioration of the situation of public order were complicate, the major factors were unbalance of distributional system, policies abuse and uncontrolled timely phenomenon taking criminal means to obtain huge proceeds. Overall, the policy fighting economical crime and punishing crime of public order got some successes. However, during the long period, the situation of public order had not been reversed fundamentally and serious and major crime rate even increased. In terms of domestic policy practice, it will lead to maximum results with little effort to efficiently enforce anti-money laundering strategy while fighting crime. Accordingly, it will be possible to improve overall public order in China.In 2009, Inter-Ministerial Anti-Money Laundering Joint Conference issued China 2008-2012 Anti-Money Laundering Strategy (hereinafter referred to as "the Strategy"). The Strategy is critical to harmonize, direct, and further the anti-money laundering in China. The Strategy has four concrete objects which are to structure anti-money laundering regime that satisfies international standard and conforms to China's national situation, to establish sound anti-money laundering and counter terrorist financing legal system, to build up comprehensive monitoring net that covered financial system and designated non-financial industry, and to set up effective anti-money laundering mechanism. These objects are of great meaning to prevent and combat money laundering offence and other crimes efficiently, to maintain normal financial regulation order and social order, and to safeguard national interests and economical security. It can be observed that the Strategy consider more in term of technique than in terms of criminal policy. Because criminal policy meaning of anti-money laundering strategy was not explicitly and clearly expressed, implementation of anti-money laundering will be affected to some extent.In sum, to conduct theoretical study about anti-money laundering strategy and tactics is helpful to understand the essence, content, and requirement of anti-money laundering strategy which was proposed by international community and was expressed in international criminal convention. It is also helpful to further enforcement of anti-money laundering strategy in China.The article is divided into five chapters. In first chapter, criminal policy value of anti-money laundering strategy is analyzed in-depth. Firstly, combining with study of foreign and domestic scholars and general theory of criminal policy, the article defines the anti-money laundering strategy, i.e. anti-money laundering strategy is a kind of criminal policy which contains predicate crime by anti-money laundering. Secondly, it is vicious trend of global crime coupled with money laundering activity which deteriorate criminal situation that constitute the realistic base of anti-money laundering strategy. Thirdly, as a kind of criminal policy, anti-money laundering strategy has three-tiered goals which are explicit. The direct goal is to contain predicate crime. To control illicit funds aiming at safeguarding economical and financial security is its indirect goal. Its overall goal is to improve the situation of public order. Lastly, anti-money laundering strategy represents the shift of the focus of criminal policy from offence or offender to criminal proceeds.Based on the theoretical analysis of anti-money laundering strategy, the second chapter explores the history of it in term of international criminal convention. Given deteriorating drug abuse, the emergence of drug trafficking groups and its harmful impact on society, politics, economic, and all social classes, anti-drug policy based on interdiction of drug had been unable to deal with it. In this context, international community "determined to deprive persons engaged in illicit traffic of the proceeds of their criminal activities and thereby eliminate their main incentive for so doing." Thus, the Vienna Convention criminalized money laundering and established comprehensive confiscation system to confiscate criminal proceeds, thereby anti-money laundering strategy was firstly formed on international level.International Convention for the Suppression of the Financing of Terrorism of 1999 criminalized terrorist financing. In the meantime, the Convention required States Parties to take all practicable measures to prevent and counter preparation in their respective territories for the commission of those offences, including measures requiring financial institutions and other professions involved in financial transactions to identify their usual or occasional customers, as well as customers in whose interest accounts are opened, and to report transactions suspected of stemming from a criminal activity. In other words, the Convention focused on terrorist financing and intended to counter terrorist crime through destroying financial base of terrorist organizations. However, the origin of terrorist financing is not limited to criminal proceeds and funds of licit origin are also collected. Given this, the article thinks that it represented the shift of the orientation of anti-money laundering strategy.When entering into 21st century, in addition to internationalization of crime, corruption of foreign public officers and various transnational organized crime which have expanded and spread constituted serious threats to political, social, and economical order. As a response, international community laid down the United Nations Convention against Transnational Organized Crime (the Palermo Convention) and the United Nations Convention against Corruption in 2000 and 2003 respectively. The objects of anti-money laundering strategy thus expanded to include organized crime and corruption. The Palermo Convention required States Parties to expand the scope of the predicate of money laundering offence as wide as possible. In the meantime, the Palermo Convention legalized the preventive measures of anti-money laundering. So the Palermo Convention established the minimum standard for international community in preventing and fighting money laundering. Based on the Palermo Convention, the United Nations Convention against Corruption required States Parties to take measures regulating formal and informal value transfer system and wire transfer. It is noticeable that the United Nations Convention against Corruption took the recovery of asset as a fundamental principle.The reason that objects of anti-money laundering strategy developed and expanded continually kept close relationship with criminal policy meanings of anti-money laundering activities. By anti-money laundering, cost of crime is increased, capability to detect offence is enhanced, economical base of criminal groups is ruined, and high level criminal is targeted.In order to realize the object of containing predicate crime maximally, it is necessary to choose ways reasonably. In terms of rules of the forgoing conventions, criminalization of money laundering, control of criminal proceeds, and anti-money laundering are necessary ways on which the realization of the object of anti-money laundering strategy must rely. Chapter 3 reviews these ways in terms of why they were chosen and what they required respectively. In criminal theory, the connotation of social harmfulness has expanded from social harmfulness of criminal behavior to outside conditions and means which lead to social harmfulness, which provided theoretic rationale for criminalization of money laundering. On practical level, confiscation of criminal proceeds based on money laundering offence expanded legal basis of confiscation of criminal proceeds. Fighting money laundering offence can also prevent criminal proceeds from entering into legal economy, thereby safeguarding economical and financial security. Punishing money launderer might limit the disposition of criminal proceeds and constitute powerful deference to predicate crime. Additional, how U.S.A. punished money laundering offence is explored.Controlling criminal proceeds is an indirect way to realize the object of criminal policy. There are four policy functions in controlling criminal proceeds. First of all, it can prevent criminal from benefiting from crime, thus reducing main incentive for so doing. Secondly, it can reduce economical power of criminal, thus preventing him from committing crime again. Thirdly, it can prevent criminal proceeds from entering into financial system and legal economy, thus safeguarding financial and economical security. Lastly, it might be helpful to grasp the flow of funds, thus facilitating fighting various crimes which include money laundering offence. In general, controlling criminal proceeds may be realized through confiscation of criminal proceeds and anti-money laundering activities.Anti-money laundering activities are the third way and are based on Criminal Situation Prevention Theory. When those channels (e.g. bank) that may be prone to be used by money launderer "strengthen" themselves and monitor activities that happen in such channels, money laundering may be more difficult or money laundering's chances are less. In the other hands, possibility of detecting money laundering activities is increased or risk of money laundering is enhanced. It will force money launderer to use more costly and less reliable channels and money laundering activities are more likely to be detected and destroyed. Main technical approaches of anti-money laundering activities include Customer Due Diligence, record keeping, suspicious transaction report and/or cash transaction report.Criminalization of money laundering, controlling criminal proceeds and anti-money laundering activities are commanded by the object of anti-money laundering strategy. Those ways direct against different targets and exert different functions. However, those ways are complemented by each other in function and constitute a diversified, multi-level, and harmonized implementing system of anti-money laundering strategy when put together.Along the analysis of ways to realize the object of anti-money laundering strategy, chapter 4 explored the above-mentioned four means of anti-money laundering tactics in terms of their policy meanings, concrete contents, requirements, and matters related with enforcement. As one of contents of wider banking regulation, Customer Due Diligence has important policy meanings in anti-money laundering strategy. Identification and verification of customer is helpful to detect money laundering activities, can prevent criminal proceeds from entering into legal economy, and is the base on which to detect unusual and suspicious transaction must depend. Developed through nearly 20 years, Customer Due Diligence has become an enormous system. With regard to rules about Customer Due Diligence in some countries, there is certain gap compared with standard that "FATF 40 recommendations" established. In addition to huge cost, implementation of these rules is not a simple thing.Individual country appeared much better in implementing requirement of record keeping than enforcing Customer Due Diligence. Record keeping is an important complement to Customer Due Diligence. If potent customer know that record will be kept, the customer is not likely to use financial institutions out of illicit object. Record keeping is also helpful to detect persons who engaged in the transaction and to provide financial trail for competent authority to trace those persons.The third means is suspicious transaction report. In members of FATF, much of money laundering cases which were investigated or prosecuted were related with suspicious transaction reports. By suspicious transaction reports, law enforcement agents can develop cases. Suspicious transaction reports are also helpful to investigate money laundering cases. However, how to deal with the relationship between of quality and quantity is a practical and difficult matter that individual country faces. In the United States of America, the volume of suspicious activity reports was increasing every year which not only added cost to reporting institutions but added burden on Financial Enforcement Net that dealt with those suspicious activity reports. In general, with regard to those suspicious activity reports, following-up that law enforcement seriously took was rare. Switzerland contrasts sharply with the United States of America. There were serious under-reporting matters in Switzerland. However, the proportion of suspicious transaction reports which were referred to prosecuting authority by Money Laundering Office of Report was very high, at average about 75%. Another matter regarding suspicious transaction report is the establishment of Financial Intelligent Unit and disclosure and transfer of information. Different types of Financial Intelligent Unit cut both ways. The key lies in how to balance the need of law enforcement against protection of private.With regard to last mean, i.e. cash transaction report, there is discrepancy between countries. Some countries (e.g. the United States of America) insist that if all cash transactions can be known in individual territory, law enforcement efforts to fight money launder can be strengthened. Given money launderer can avoid requirement of cash transaction report through structuring transaction, the United States of America provided "structuring offence", which is independent of predicate crime. However, other countries do not agree with it. For example, Switzerland refused to implement system of cash transaction report explicitly. In China, given the capability of financial institutions to analyze and identify suspicious transaction reports is relatively weak, special system of large transaction report is adopted. The major function of cash transaction report is to detect or deter money laundering activities. However, requirement of cash transaction report involves serious implication in cost and private.Through analysis of means of anti-money laundering tactics, we can observe that these means all have close relationship with the object of particular criminal policy. Because of different conditions of individual country, there appears individual characteristic in implementing these means. However, in terms of third mutual evaluation organized by FATF, members of FATF did not behave ideal in implementing "FATF 40 Recommendations". Thus, individual country shall perfect its design of system of anti-money laundering and implement these means faithfully.China had joined the Vienna Convention, International Convention for the Suppression of the Financing of Terrorism, the Parmer Convention and United Nations Convention against Corruption. China is also a formal member of FATF. In order to fulfill the obligations of the conventions and to comply with "FATF 40 Recommendations", since 1990s, the pace of Chinese legislation in anti-money laundering has been accelerating. Especially since 2003, the work of anti-money laundering in China has referred to international standards, has based on conditions of China, and has gotten very large successes. These successes include establishing basic framework of legislation, regulation, and organization and building up relatively comprehensive institutions of anti-money laundering. Nevertheless, the work of anti-money laundering in China remains in initial stage in general. System of institutions of anti-money laundering is not yet perfect. Mechanism of the work of anti-money laundering has not exerted function fully. Overall effectiveness of anti-money laundering is not yet good. Thus, the last chapter of the article will explore contemporary design of anti-money laundering strategy in China.On legislation level, China had established anti-money laundering strategy. In terms of currently criminal situation and money laundering activities in China, it is necessary for China to enforce anti-money laundering strategy. However, in juridical practice, China had not enforced anti-money laundering strategy consistently. In the work of anti-money laundering, there were questions such as that the object of the work of anti-money laundering is not clear. In terms of analysis of concrete matters of anti-money laundering, there are some questions in current legal system in anti-money laundering and in current work of anti-money laundering. Reasons that lead to those questions are complicate. However, one of the important reasons is that the object of anti-money laundering strategy remains unclear, which is reflected by that emphasis on its meaning in criminal policy is not enough. Directing against those questions and depending on forgoing study, the article propose that contemporary anti-money laundering strategy in China shall be perfected from following aspects:(a) expanding the scope of predicate crimes of money laundering offence; (b) perfecting confiscation regime; (c) setting up comprehensive law enforcement agents in anti-money laundering; (d) establishing incentive mechanism in the work of anti-money laundering; and (e) perfecting legal system of anti-money laundering furtherer.There are three aspects of innovation in the article:(a) First of time, the article relatively comprehensively demonstrates anti-money laundering strategy on theoretical level domestically. Firstly, the article defines anti-money laundering strategy as a kind of criminal policy which contains predicate crime through anti-money laundering. Secondly, the article analyses practical basis on which anti-money laundering strategy established. Thirdly, the article proposes explicitly that anti-money laundering strategy has three-tired goals of criminal policy. Lastly, the article points out that the key is the shift of focus of criminal policy. In sum, in criminal policy's theory, anti-money laundering strategy has legitimacy, (b) The article structures the framework in realizing the object of anti-money laundering strategy. The object of anti-money laundering strategy can be realized through direct criminalization of money laundering, indirect controlling criminal proceeds, and anti-money laundering activities. In the meantime, obligations of anti-money laundering including Customer Due Diligence, record keeping, suspicious transaction report and/or cash transaction report provide practical means of tactics in order to realize the object of anti-money laundering strategy. The article explores policy meaning of these ways and means of tactics and analyses concrete provisions and situation regarding implementation. In the end, the article concludes that the object of anti-money laundering strategy is likely to be fulfilled, (c) From the perspective of criminal policy, the article proposes a series of suggestions that intend to perfect anti-money laundering strategy in China. The object determines the direction of operation. Viewed from the perspective of criminal policy, some difficult problems or disputed questions become clear. These suggestions consist of expanding the scope of predicate crimes of money laundering offence, perfecting confiscation regime, setting up comprehensive law enforcement agents in anti-money laundering, establishing incentive mechanism in the work of anti-money laundering, and perfecting legal system of anti-money laundering furtherer.It is sure that there are some deficiencies in the article. One is that the article does not explore international cooperation in anti-money laundering. It is well-known that money laundering is a global matter which need collectively act by all countries worldwide. In the same veil, implementation of anti-money laundering strategy in one country depends on efficient and expedient international cooperation. The other is that the article does not analyze anti-money laundering financial regulation. Effective anti-money laundering financial regulation is inevitable to implement means of anti-money laundering tactics or to perform anti-money laundering obligations thus to enforce anti-money laundering strategy. Those deficiencies is gonging to be improved in later study.
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