Study About AML Legal System Of Financial Institutions In China

Financial institution is the primary place which the crime of Money Launderingfrequently happened, and how to prevent Money Laundering by using the financialinstitutions to become a common task for one country and even the whole world.Anti-Money Laundering legal system construction in China started relatively late,compared to western developed countries are still relatively backward, which alsomake the Money Laundering criminals shift the place of Money Laundering to thecountries and regions which Anti-Money Laundering prevention and monitoring arerelatively weak In recent years. China’s Money Laundering activities have becomeincreasingly frequent, which had a major impact on China’s economic and socialstability. Therefore, for the normal operation of economic growth of China and thestability of the world financial institutions, to establish a sound AML Legal System ofthe financial institutions is the key of Anti-Money Laundering work. I will combinedomestic and international practical experience about legislation, internal control andinternational cooperation in the construction of Anti-Money Laundering system offinancial institutions and offer some my own suggestions.This article includes four parts as follows:The first part, is mainly an overview of Money Laundering and Anti-MoneyLaundering, a more systematic introduction of the status of the crime of MoneyLaundering and the impact to the financial institutions and a country’s economy andeven the global economy. I also briefly described the status and responsibilities in the Anti-Money Laundering activities of financial institutions.The second part, I made reference to international standards of the internationalAnti-Money Laundering work, and elaborated framework of the Anti-MoneyLaundering work system of the U.S. and UK in the areas of legislative, regulatory,and international cooperation from which I get some inspiration, and from ourfinancial institutions to carry out anti-money laundering work of revelation. I alsomade a number of my own views about the change in the regulatory and the way ofAnti-Money Laundering.The third part includes four aspects as follows. The first aspect is the legislationand the identification of responsibility when the criminal or the anti-money launderingstaff violation of the Anti-Money Laundering laws or rules; The second aspect is thecoordination between financial regulators in the Anti-Money Laundering work, in thissection, the author proposes two operating mechanisms of coordination andrecommended which we should have done the selection; third aspect is thedevelopment dimension of the internal control system from the financial institutionsto prevent Money-laundering crimes.The fourth part is mainly focused on the importance of international cooperationof Anti-Money Laundering. Taking into account the current situation of internationalcooperation about the Anti-money Laundering, the achievement has been achieved,and the obstacles still exit, I proposed some suggestions so that we can participate inthe international cooperation of Anti-Money Laundering widely.