Identification And Supervision Of Money Laundering On Securities And Futures Market

With the supervision of money-laundering for banking system gradually strengthened, money-launders pay more attention on securities, futures and insurance markets. The People's Bank of China stresses to put these three areas as the core tasks of 2007 anti-money laundering conference. There is no practical experience or dedicated academic study against this kind of new money laundering behavior all over the world. Based on characters summarizing and patterns abstracting, the research tries to explore effective identification ways on new money laundering behaviors, and, consequently, to put forward dedicated suggestions for supervision.The research on money-laundering of securities market begins with a comprehensive case. Through analysis of listed companies, we come to the commonly used money-laundering methods and the features of the criminals. To better help the supervisors to identify the money-launders on securities markets, this paper designs a series of index. At the end, combined with the research results and the existing achievement, this research summaries various money-laundering practices by using the securities market, listed companies and securities companies.With futures markets, this research begins with an analysis on the trade features and summaries three common models of money laundering. This research concludes that criminals use bundles of associated accounts laundering money, and abstracts two kinds of typical paths of dirty money flow. Based on the analysis above, this paper establishes a set of specific indicators to identify the unusual behaviors. This index system uses multi-level, multi-angle approach to identify money-launders large scale of usual traders.In order to test the effectiveness of anti-money-laundering indicators, the research uses model simulation and empirical research methods. The simulation defines the parameters of trading environment, agents and rules in order to reproduce a similar situation like the real future exchange. Using the simulation results to compute the identifying indicators, the results show that the Anti-Money Laundering indicators to be effective. Similarly, the empirical findings of the study also prove the effectiveness of the indicators.Based on all the research above, this paper recommends that: (1) in the futures market, enhance the regulatory capabilities of the Futures Exchange; strengthen the management of futures brokerage firm; enhance the implementation of laws and regulations, and increase personnel training. (2) In the securities market, improve corporate governance of listed companies; strengthen the currency funds auditing, beware of cash flow information deceptive; banks and other financial institutions to improve the system of internal controls, strengthen the financial system intergovernmental cooperation and communication; strengthen the supervision of listed companies secured.