Research On China's Anti-Money Laundering Based On Auditing

The scale of money laudering in China is developing expontenially as China's economy soared for years according to an survey conducted by PBOC. An report from IMF gave an estimation of money laudering in China as high as 200 to 300 billion RMB. It is not hard to say that anti-money laudering has already become an impedient problem in China.Money laudering posed a great danger to not only financial security of the world community, but also may be a trigger of a series of social and political problems, even a threat for national security and social stability. Countries all over the world are in the phase of constructing an effective system to combat money laudering and maintain the social stability. As with other countries, the strategy of anti-money laudering is mainly through a forced obligation of anti-money laudering of financial institutions in China. Some progress has been made in financial institutions as they are given the obligation of anti-money laundering, but several problems still exists, like a careless approach to customer identification.What's worse, it is a loophole for the crime to bloom as no anti-money laudering system exists in non-financial institutions as well as no legal status for CPAs on their obligation on anti-money laudering.How to face these problems for the Chinese government, build an effective anti-money laundering system to combat money laundering activities to enhance our effectiveness and efficiency of anti-money laundering. This paper gave a try in designing auditing procedures within PBOC and a blueprint of anti-money laundering inner control with a perspective of auditing as to offer some advice on the combat of money laundering crime.According to the themes and train of thought mentioned above, this paper is divided into four parts:The first part is the introduction of this paper outlining the background of topics, research significance, research developments both at home and abroad, train of thought and research methods, innovation and shortcoming.The second part gave the definition of money laundering and its procedures, followed by the definition of anti-money laundering and the strategies used in it. Then this part made an introduction on the relationship between anti-money laundering and auditing. The third part is focused on the tactics and strategies used in Chinese financial institutions and their problems. Started with a money laundering case, this part came to a conclusion that the lack of anti-money laundering may be a cause of the increasing money launder in crimes. The last gave an analysis on the status of CPAs and why CPAs should have the obligation on anti-money laudering crimes.The fourth part Construct the financial institutions audit procedure to monitor financial institution implement of anti-money laundering work effectively; propose to design a comprehensive anti-money laundering internal controls to prevent money-laundering enterprises who use business to launder money; given CPA anti-money laundering obligations to deal with criminals CPA money laundering.The innovation and features of this papers research on China's anti-money laundering based on auditing, design the financial institutions audit process for PBOC,build a corporate anti-money laundering internal control.These can be for the PBOC, when anti-money laundering enterprise in the concrete implementation to be a reference has some maneuverability.