China's Financial Sector, Anti-money Laundering Regime

Usually, Money Laundering indicates a process to make incomings legalized by all means for the purpose of concealing the real source of illegal money. In current society, money laundering is not simply a criminal problem. It badly impacts one country' s economy, finance, political orders as well as society stability. The construction of Anti-Money Laundering system in developed countries has been on a relatively high level, while in China it just stays on the very beginning stage. There exists a big gap between China and developed countries no matter in the legal system construction or financial inspection.This essay mainly focuses on the introduction of basic theory about Anti-Money Laundering. By expatiation and comparison of Anti-Money Laundering between international society and China, It will indicate the deficiency of our work on system construction. Meanwhile by using the game theory, it analyze the balance condition and strategy choice for each player in the game of Anti-Money Laundering, then indicates how to improve the inefficient system to change the imbalance situation and get a relatively high efficiency system arrangement. In the end of this essay, from the aspects of legislation, financial inspection and international cooperation etc. , some attitudes and suggestions will be raised to complement China' s Anti-Money Laundering system construction.