Research On Money Laundering Risk And Anti - Money Laundering Regulation In Securities

As the domestic capital market development, money-laundering has not only appeared in the banking industry, but also invaded into other financial industries, such as securities industry. The pervasion has increased the difficulty of attacking money-laundering, and severely impacted the domestic securities market long-term healthy development and securities companies’self-construction.Firstly, this article has made a general description of money-laundering and anti-money laundering, especially the current situation of money-laundering in the securities market, and the anti-money laundering supervision work is also been discussed. Because money-laundering and anti-money laundering entered domestic market time isn’t long, so our capital markets, especially the securities market, has limited experience on anti-money laundering work compared to foreign developed markets.The second part of the article focuses on the money-laundering risks of domestic and foreign markets, or from every securities transaction procedures, which could be used by criminals to conduct money-laundering. As domestic securities market has implemented the third-part-depository, so money-laundering couldn’t happen in the replacement and integration procedures. This is the main difference between domestic and foreign markets. However, the layering step is always been used by criminals, no matter in the domestic or foreign markets, so we can take lessons and experiences from developed markets. The specific analysis on the securities transaction risks provide basis for how to conduct anti-money-laundering work.The third part listed United States, U.K and Hongkong securities markets as samples, especially Hongkong market which has highest similarity with the mainland securities market. The article makes a detailed comparison from supervising laws and regulations, supervising institutions and the implement of supervising procedures. The article points the main difficulties for current securities industry anti-money-laundering work out after previous comparison. Last part of this article is the conclusion and suggestions for how to enhance the anti-money-laundering work in current circumstance, including:setting up an independent anti-money-laundering supervising institution; solving the B share historical problem; improving the industry operation rules and supervising model.