Research On CPA’s Anti-Money Laundering Audit

"Money laundering" means the criminals to disguise or conceal the source and characteristic of crime gains through a variety of ways. According to the authoritative estimates of the International Monetary Fund, the annual amount of money laundering in China is roughly equivalent to2%of Chinese economic outputs, from200billion to300billion yuan. Money laundering has far-reaching disadvantage, which is harmful to one country’s political stability, economic security and social harmony.By contrast, in the context of China’s rapid economic development and increasing integration with the world’s and increasingly specialized, complex and international economic crime, the anti-money laundering has gradually been public concern. Facts have proved that anti-money laundering is a very complex systems engineering involving a wide range. Effective anti-money laundering strategies must address the money laundering crime and form an anti-money laundering chain, relying on closely work of multi-sector, multi-industry, multi-area. In this chain, CPA should play an important role. But for now, not only CPA’s practice of participating in anti-money laundering is at the initial stage, but also the CPA’s theory of anti-money laundering audit is very immature. What are the challenges and difficulties of CPA involved in anti-money laundering and how to solve these challenges and difficulties? This is a new urgent topic needed to study and answer just now.In this paper, we investigate the current situation of CPA’s anti-money laundering audit and have a conclusion that CPA "cannot","is afraid to","is unwilling to" participate in anti-money laundering. For the analysis of the underlying theoretical motivation, we finally put forward some countermeasures to resolve these issues, such as defining a clear index system, improving risk response methods and establishing an effective incentive and restraint mechanism.This paper includes six chapters totally. Chapter I is the instruction part, introduces the research background and significance, literature review and summary, research idea and method and research contribution and shortage. Chapter Ⅱ outlines the definition of money laundering and its method and hazard; the definition of anti-money laundering and its subject and obligation; the definition of audit and its subject and functions; besides it states it is necessary for CPA to participate in anti-money laundering. Chapter Ⅲ introduces the status of domestic and international anti-money laundering audit and discusses CPA’s responsibilities and gives our own point of view. Chapter Ⅳ elaborates the current problems of anti-money laundering audit, which includes some challenges and three major difficulties. Chapter Ⅴ puts forward some countermeasures and suggests to resolve the problems mentioned in Chapter Ⅳ.