China's Anti-money Laundering Intelligence Discussed

Since the mid-20th century, the rapid development of money-laundering offences, a serious threat to the economic and national security, and threaten global economic development. China's anti-money-laundering work in recent years has taken the wide attention of the community, through effective propaganda work, so that the public have more in-depth understanding of the money-laundering and anti-money-laundering. In the specialized works of China's anti-money-laundering, intelligence work occupies a very important position, is the prerequisite and foundation of other works.This paper discusses the intelligence work of our country's anti-money -laundering, is divided into six parts:PartⅠis INTRODUCTION. First of all, pointed out the significance that of the intelligence work of the Anti-Money-Laundering . In the specialized works of anti-money-laundering, the intelligence work against money-laundering activities is one of the most important fundamental works. Receives, gives the brief explanation to the present situation of research for anti- money-laundering intelligence question. Points out that during research anti-money-laundering intelligence work in the financial domain, also should attach great importance on studying the anti- money-laundering intelligence question from the perspective of the investigation. The article adopts the research technique which the comparative analysis and the reality inspection unifies, purpose is to study how to promotes our country's anti-money-laundering intelligence work from aspects of finance and Investigation.PartⅡis the summary of money-laundering crime, elaborates from following several aspects: 1.The concept of money-laundering crime. It is the process of legalization of illegal income,the name of all kinds of criminal activities that Conceal or disguise the the crime income. Our country criminal law also has the detailed stipulation to the money laundering crime; 2.The existence reason and history of Money-laundering. The reason of money-laundering has two aspects,the crime subjective inherent demand and the objective environment is loose, tolerance. In the modern significance ,money- laundering origins from the 20th century 20's ,the article carrys on the explanation in the typical cases; 3. The process and main form of money- laundering. The money laundering way and the method are many and varied, such as currency smuggling, using the financial system , using all kinds of companies bunkers, using underground banks and using the Internet. But no matter what way, money-laundering process included placement stage,layering stage and intergration stage; 4. The present situation and the development tendency of money-laundering crime. Since the 20th century 50's, the money-laundering activities gradually has been rampant, separates with the upstream crime, gradually becomes the independent serious crime. The development trend of money-laundering crime mainly displays by the exhibition spread from developed countries to less-developed countries, more international,professional, with each kind of upstream crime relation is closer , and the use of funds assumes large-scale.PartⅢis the elaboration about overseas's same understanding to importance of anti-money-laundering intelligence. The task of Anti-Money -Laundering intelligence work include discovering clues to cases, finding loophole in the existing monitoring system,analyzing the money-laundering rule, establishing the early warning mechanism to money-laundering crime and promoting the international exchange. This paper carries on the explanation to customer identification system, transaction record-keeping system, large and suspicious transactions reporting system ,the three main sources of the intelligence system and takes the large and suspicious transaction reporting system as the key point. The overseas situation introduction has selected American and the English two countries. Through compare both countries's anti-money-laundering function department,the establishment of anti-money-laundering intelligence agencies, sums up the features and advantages of their intelligence work. United States anti-money-laundering intelligence system components from many departments. It's anti-money-laundering intelligence system maintains a high level of coordination and cooperation by FinCEN which possess a powerful intelligence collection, analysis, comparison, classification, transfer function. United States anti-money-laundering intelligence system has advanced technology, large detailed data, intelligence collection and analysis are rapid and efficient, the exchange of information is quick and secure. British anti-money-laundering intelligence access methods and channels is based on the true suspected suspicious transactions reporting system. Financial institutions is on the high level of suspicious transactions analysis and judgement and has very harmonious relationship with National Crime Intelligence Service. This is a model of significance. By comparing the actual intelligence work of China's anti-money-laundering, we could find the experience for our reference.PartⅣis an important part of this article. It expounds the current situation of China's anti-money-laundering work mainly from three aspects, such as customer identification system, large and suspicious transactions reporting system, China's anti-money-laundering intelligence agencies. By comparing with foreign anti-money-laundering intelligence work, we could found China's vulanerable spot on anti-money laundering intelligence work. There are several problems of our customer identification system, such as the lack of complete implementation of the system, and of being insufficient on the identification capacity for financial institutions. The problems on large transaction reporting system are wrong reporting on large transaction reporting, and re-reporting on large transaction reporting. Because many factors need to be added to the network manually, the work efficiency is often influenced, which simultaneously reduce the value of the data. The problems on the suspicious transactions reporting system are that the contents of the report are not detailed enough, the value of intelligence is not so high, the lack of analysis and judgement on suspicious transactions of internal financial institutions. Because of the lack of capacity on suspicious transactions, we China over-reliances on large trader reporting system, which leads the low accuracy and low rate of utilization on intelligence. There are also problems existing in China's anti-money-laundering intelligence agencies,such as the restrictions on carrying out intelligence work which are because of the location on the monitoring and analysis center of China's anti-money laundering, the straitness of the scope of intelligence sources, and the lack of sharing of the judiciary information. The mode of data management is not conducive to play to their joint efforts to prevent and combat money-laundering crimes.PartⅤis the core of this paper. It's mainly aimed at the shortcomings on the intelligence work of anti-money-laundering in our country. In this part, three aspects will be probed: the building of Anti-Money Laundering Financial Intelligence Centre, the strengthening of financial institutions' capability on gathering and analyzing money-laundering information, and the enhancing for investigative organs' collecting and analyzing capabilities of information on money laundering. And the solutions of problems in practice will be addressed. On the foundation of the anti-money-laundering intelligence agencies, we should be in accord with international practice. We must establish China's real FIU, clarify its legal status, and expand its scope of information monitoring. Besides, we must establish highly efficient and advanced information processing system, a strong database of financial intelligence and a developed computer networks. Furthermore, we should strengthen the links between each financial organs, and strive to build a high-quality financial information rank. On financial sector, we should draw lessons from foreign experience to establish a perfect customer identification system, strengthen the comprehensive analyzing and process judging within financial institutions, and improve the quality and accuracy of suspicious transactions reporting. In addition, we should establish a full-time staff system of Anti-Money Laundering in financial institutions. Investigation departments should set up a special criminal intelligence department which could lead investigations with the information it collects, and create a intelligence and information system which is based on the database of criminal intelligence information to improve the efficiency of intelligence using. When advanced position money-laundering crimes are fought against and controlled, we should simultaneously dig deep clues to get intelligence and information of money-laundering crime. Illegal financial organizations such as underground banks will be key target of position control. We should strengthen the exchanging of international police to expand the sources of intelligence and deepen cooperating of business.PartⅥis the epilog, which is a summary of the full text. It proposes that we should construct China's own prevention and control system of anti-money-laundering on the base of anti-money-laundering intelligence.