The Present Situation Analysis Of China’s Commercial Bank Anti-money Launding Compliance Managenment

As the globle economy intergrates and the progress of financial internationalisation accelerates, the harm from Money Laundering to the society is becoming more and more obvious. Money Laundering provides motivation to drug dealers, terrorists, corrupt officials and other kinds of criminals, which undermines social stability and brings a threat to the national securiy. Meanwhile, it also breaks the nation’s economic order and does harm to the credibility of the financial institutions. Major Operational Risk and Money Laundering case have been occured in succession in the financial institutions around the world since the1990s, which has been awared the world national regulatory authorities of reinforcing the interal compliance-risk management in the financial intitutions, and the regulatory authorities introduced the guidance of compliance management successively. For the past few years, the compliance management of anti-money laundering, as a special technology of risk control, has drwan wide attention of the global financial industry and become a common concern. How to strengthen the construction of the commercial banks’ internal control system, enrich the methods of compliance management, dicover and prevent the transactions of money laundering in a timely manner, and to improve the ability of risk prevention have become the core goal of the commercial banks’ anti-money laundering compliance management. Under the background of a late start of AML in China, how to encourage the financial institutions to build their compliance culture of anti-money laundering and cultivate an effective AML compliance management system have become an urgent issue to be researched and practiced in the financial world.At present, on the basis of the existing AML laws and regulations, Chinese commercial banks had a risk-based risk management conception as guidelines, and established an anti-money laundering organization and work system preliminarily to manly satisfy the requirement of the regulatory authorities. The management of AML has become the essential component of commercial banks’conpliance risk and internal control management. However, compared with the practice of international banks, about the risk management of AML Chinese commercial banks still has a long way to go. The mismatches between the construction of AML organizations and the development of AML, and the lack of AML pactitioners have restricted the implementation of the internal control system. The singularity of risk identification methods and the deficiency of experiences and researches in money laundering risk measurement and identification weakened the risk monitoring and controlling abilities. The internal control system is not yet perfect, and the cooperation between AML department and the other business departments is weak, which made the work of AML more inefficient. There is also existing deficiencies of application of compliance risk management theory in money laundering risk control practice.The research on the current status of commercial banking AML compliance management enriched and completed the AML compliance management theory and provided the implementation of experiment for the commercial banks to improve the AML management. On one sides, this thesis presents that the operation of AML should be brought into the centralized processing, and by establishing an interacting machanism of the measurement of AML to solve the problems of the weak of AML execution and a long chain in management. This theory give advantages to the AML management control by the AML administrative department to improve the efficiency of management and execution. Meanwhile, it is creative in the establishing of coordination mechanism, the form of mechanism sharing and the methods of suggestion making. On the other sides, this thesis’s research on commercial bank groups’AML management system puts forward some suggestions of optimaizing the AML management system from a group-wide point of view, and attaches realistic significance to the domestic commercial banks’AML management. It also present the key emphasis which is applicable to the commercial banks’AML compliance management. It is having great significance for improving the efficiency of commercial banks’AML management by the achievement of cetralized processing of AML operation, the risk disclosure and assessment to the other business departments, the strenghthened detection of risk monitoring in the information sharing, and the enriched means of risk monitoring.