On The Improvement Of The Anti-money Laundering System Construction Of Financial Institutions

Since the 80s'of the 20 Centuries, the use of the financial system by criminals for money laundering has been a world wide crime. International society insist on researching and creating the anti-money laundering measures for their financial system, in the same time, many countries have established laws to counter the crime of money laundering. To be a formal member of WTO, accords to the international market is the inevitable development trend for Chinese financial system, also the crimes of money laundering that infiltrating into the financial system of our country are a problem can't be ignored. Though our country has established some financial laws to counter the money laundering, and founded special institution for anti-money laundering, it still need long-term consummation. Therefore, researching how to build up and consummate the anti-money laundering system especially for the financial institution has important and realistic meaning in stabilizing the society and ensuring the economic development. This article give the theoretical discussion about how to consummate the anti-money laundering system of our country with the economic vision, which trying to by studying the behavior patterns and analysising the cost and benefit of the actors, and borrowing some successful experience from the abroad. Chapter 1 of this article synthesizes the descriptions to money laundering of some nations and regions or international organizations in the world to define the contents and characteristics of money laundering. Money laundering is the processing of criminal proceeds to disguise their illegal origin. Then according to the stipulation that the criminal law of our country is guilty to the money laundering, it summarizes the characteristics and development trends of the activity of money laundering in our country, and expound the danger of money laundering and the important meanings of anti-money work for our country. Finally, it explains the necessity of building anti-money laundering system in financial institutions from tow respect that the means of money laundering and the need to anti-money laundering. Chapter 2 of the article analyzes the anti-money laundering work with economic theory. Combine the conditions of our country to money launderer, financial institution and regulator three economic subjects who are involved in anti-money laundering, we have the cost-benefit analysis at first and believe that they have individual cost and benefit. The main problem at present is that the law cost which money launderers face is currently low, but the income is generous, the high cost in anti-money laundering that financial institutions afford decrease their initiative. What's more, to be a kind of quasi-public good, the action of anti-money laundering need the government guiding the private department to provide. but it's very difficult in quantitating the benefit for the society and economic, so its importance is apt to be ignored. Then according to the characteristics of anti-money laundering work and the cost-benefit analysis before, we give out a model basing on the game theory. The action of money launderer, financial institution and the regulator influence their possible cost and benefit each other. There doesn't exist the dominant strategy equilibrium in the game of money launderer and the financial institutions. Solve the model of the mixed strategy game, what's the conclusions we get are that the level of the willing of the financial institutions to work hard in anti-money laundering changes on the opposite direction on the trend of the possible income they get in acquiescing in money laundering. And the little cost in anti-money laundering, the more dangerous moneylaundering take to financial institutions, the higher enthusiasm in anti-money laundering of financial institutions is. The game proceeded between the regulator and financial institutions is a dynamic game of incomplete information. The level of the hard work of the financial institutions in anti-money laundering and the probability with which the regulator checks the institutions converge to a balance state. The regulator must punish severely to the violation of anti-money laundering rules to guarantee the financial institutions performance anti-money laundering rules earnestly. In the chapter 3 of this article it compares the financial anti-money laundering system of other countries. The countries where have established anti-money laundering system all have defined the legal liability of the financial institutions in anti-money laundering. Meanwhile, they have strengthened the following content of financial institutions'civil system: set up civil control procedure and business manual, confirm customer's identity, keep the business records, discern and report the suspicious trade, strengthen the education of anti-money laundering for the staff etc.. In addition, the countries still strengthen the financial supervision specially, and they are aimed at the "vacuum"area of the anti-money laundering that might appear. In chapter 4, this article analyses the present condition of our financial circles in our country. And point out some problems which exist in our anti-money laundering system constructing, such as lacking the social foundation, the laws, regulations and the regulator 's organization being imperfect, the financial precaution weakly, lacking favorable international cooperation, etc.. Combining economics theory analysis and comparative analysis in the two parts formerly, this article proposes, it must strengthen the work of the following aspects to consummate the counter money laundering system of the financial circles: at first, build the good social environment for...