A Research On The Legal Regime Of Anti-Money Laundering By Designated Non-financial Businesses And Professions

Money laundering is recognized as a serious crime by the international community. With the increase of prevention and control of money laundering in the financial sectors, traditional money laundering channels have evolved from the financial sectors to the coexistence of financial sectors with non-financial sectors. Therefore, in addition to the legal regime of anti-money laundering(AML) by financial sectors, the legal regime of AML by non-financial sectors is undoubtedly should also be another important means of prevention and control of money laundering. In connection with the change of channels of money laundering, international community has stepped up research on AML legislation in the non-financial sectors, and it is extracted from a typical representative of which to be focused on the legislation, this representative is collectively referred to as "designated non-financial business and professionals"(DNFBP).Economic globalization has brought some negative effects such as transnational crime, while which promotes world economic development, and the transnational money laundering is one of the typical manifestation of transnational crimes. In this context, China has also inevitably be affected, and there have been various forms of money laundering. China’s AML start late, and money laundering crimes in recent years have shown that the situation of AML in China is not optimistic. From the legislation of DNFBP AML, the work in this area is in a relatively short board position in AML legal system. This dissertation starts from the current status of the legislation of DNFBP AML in the international AML legal system, from international law and comparative law perspectives, combing the legislation of DNFBP AML of relevant international organizations and countries, and puts forward proposals in connection with problems of the legislation as to DNFBP AML in China. There are six parts in this dissertation to discuss the above content:Firstly, chapter one introduces the purpose and significance of the legal regime of DNFBP AML. Compared to the study of the legal regime of AML by financial sectors, legal theoretical study of DNFBP AML has lagged behind, and failed to provide proper positive guidance to AML practices. According to the situation of China, the emphasis of domestic AML work lies in financial sectors, either practice or theory of DNFBP AML is not sufficient. Secondly, this part presents the current status of research in this field from two aspects of domestic and foreign, and corroborates the necessity of research in the field of the legal regime of DNFBP AML. Finally, this part introduce the content and research methods of the dissertation.Chapter two dissusses the basic concepts of money laundering and its relation with DNFBP AML. Firstly this chapter begins with the common aspects of the concept of money laundering extracted from internationally recognized legal documents or standards, and defines money laundering from connotation and denotation combined with the most current practice of international AML. Secondly this part describes the globe scale of money laundering from the quantitative aspect, and makes a comprehensive description of harmfulness of money laundering from qualitative aspects of economic, political and social dimensions in order to make a more profound characterization. Thirdly, from a vertical angle, this chapter describes the common money laundering methods due to the practical operation of AML. Finally this chapter defines DNFBP and points out changing trend of range of DNFBP, and points out measures and ideas of international community about DNFBP AML from commonness and individuality combined with the legal provisions or working recommendations about DNFBP AML of the United Nations, FATF, EU and other typical international organizations.From the beginning of the chapter three, each chapter analyses the legal regime of AML of every business one by one according to the scope of DNFBP scope. Chapter three firstly chooses the real estate sector as the sample and analyses the development of real estate sector and the situation of money laundering through this setor in order to grasp the trend of money laundering through the real estate sector on the whole. Secondly this part analyses AML legal provisions of the real estate sector of America, Britain and Canada. On the whole, the three countries have adopted the hierarchy system including laws, regulations or guidelines to regulate AML of the real estate sector, but America puts the real estate sector into the financial institutions as a whole specification, Canada and Britain regulate the AML of the real estate sector with administrative regulations. From the content point of view, money laundering through the real estate sector is criminal, and basic obligations of AML are the same. From the characteristics, American guidelines specify risks and measures of money laundering through the real estate; Canada administrative regulations refine the obligations of AML in the real estate sector; and Britain applies the same obligations to non-financial sector including the real estate sector as financial sector. Finally this chapter analyses the current situation and reasons of money laundering through the real estate sector in China, and in connection with the grim situation of money laundering through the real estate sector and the problems such as lacking branch and operational legal provisions of AML and deficiency of legal regime hierarchy, this part puts forwards legislative suggestions.Chapter four studies the legal regime of AML of gaming. Firstly this chapter introduces the global gaming development, and analyses the current situation of international money laundering through gaming and points out the corresponding reasons. Secondly this chapter selects America and Macao, China for analysis due to its highly developed gaming sector. American laws mainly put gaming sector into financial sector and regulate AML of gaming sector as a whole. And specific AML measures and obligations of gaming and casinos such as currency transaction reporting, record keeping, suspicious transaction reporting and the exemptions are included in the detailed provisions of the administrative regulations. As for the state level of Nevada, Las Vegas, where the former gambling capital of the world locates, demands casinos to comply with the cash transaction reporting and record-keeping obligations under federal law, reporting of suspicious transactions can be implemented under its own Nevada regulations made by the gaming control institution. As the the current gambling capital of the world, Macao, China, AML of gaming mainly sets up three institutional system including laws, administrative regulations and industry guidelines, in which laws constitute the the framework of the provisions, and administrative regulations further refinement of the provisions on the basis of the law. The industry guidelines of AML of Macao, China, are more unique, not only clarify the relevant procedure of obligation implement of preventing money laundering, but also these guidelines are enforceable. Finally, this part analyses the channels of money laundering throuth gaming in the mainland of China, and points out the most likely and operational channel for money laundering through gaming is to go to casinos in Macao for money laundering. Then this part analyses the legal regime of AML relating to gaming, points out relevant problems, and pertinently put forwards legislative measures to AML of gaming to inbound persons from mainland of China.Chapter five studies AML of gold and jewelry business. Firstly this chapter starts from the current status of the development and money laundering of gold and jewelry market, and further points out reasons for money laundering through this business. Secondly this part takes Belgium and Switzerland as example due to better implement in AML standards of DNFBP, and analyses the legal regime of AML of gold and jewelry business. Belgian criminal law makes it an offence to launder money through gold and jewelry business. And on the side of preventive law, Belgium establishes universal legal obligations of AML of DNFBP including gold and jewelry business. Swiss criminal law not only defines the crime of money laundering, but also makes it an offence to negative crime of customer due diligence, and Swiss criminal law applies to gold and jewelry practitioners. The precious metals and jewelry dealers are defined as financial intermediaries in the preventive law of money laundering, and are imposed obligation of AML and exemptions. In addition, Switzerland forms the AML regulatory pattern of gold and jewelry business from self-regulatory organizations and government organizations. Finally, the chapter analyses the trend, channels and causes of money laundering in current gold jewelry marke, probes into legal problems of AML in this business and makes the targeted legislative response.Chapter six chooses the legal system of AML of lawers. Firstly this chapter introduces overview of the development of the international legal professions and money laundering in this business and analyses the reasons why lawyers are involved in money laundering. Secondly this chapter takes important economic centers in Asia Pacific, Australia and Hong Kong as a sample, to analyse legal regime of AML of legal professions. Lawers are imposed criminal obligations by Australian criminal law, and on the one hand the special AML law imposes obligations of AML to lawers, on the other hand takes into account professional privilege, which AML obligations are limited to the financial services that lawyers provide. The characterization of legal regime of AML of Hong Kong is to set up negative criminal obligation of AML, while also takes into account the professional privilege of lawyers. In addition, the law society of Hong Kong establishes mandatory requirements for lawers to fulfill the AML obligations from the perspective of self-regulatory organizations. Finally, this chapter analyses the current situation and causes of money laundering of lawers in the mainland of China, and puts forward legal suggestions for improvement as to problems of legal regime of AML of legal professions.