Expounding On Hidden Dangers Of Money-laundering In In Domestic Banking Industry And Countermeasures

The banking sector, like other financial services, is exposed to the threat of money-laundering. The banking sector could be attractive to money laundering,Seeking to place funds into a financial product that will provide them with a reliable, clean return of funds invested. If a money-launderer is able to move funds into a commercial bank's product and receive a payment made by a commercial bank then he will have made his funds appear legitimate.This paper is mainly based on the regulatory system and current practice of antimoney laundering in China to make the studies and discussion the regulatory issues of anti- money-laundering in banking industry.“ 9.27” The Most Illegal Private Bank money-laundering case in 2007 witnessed the money laundering vulnerabilities in the domestic banking sector. Money laundering has been a serious problem in the banking sector these years, especially in the commercial banking. The report of People's Bank of China in 2013 said that early redemption was very common in the developed district. The Financial Action Task Force(FATF), meeting in Paris from 9 to 11 February 2005,has wallowed for the first time, China to attend its plenary meeting as an observer, and sent a delegation to inspect the money laundering risk exposure in the domestic banking industry.Nowadays, there are a lot of papers focusing on the money laundering vulnerabilities in the bank industry, either aboard or domestic. However, our anti- money-laundering ‘s mechanism exist some problems in banking industry. This shows that China's current banking sect anti- money-laundering(AML) issues, from both practical and theoretical perspective, need for a comprehensive and systematic study, in order to provide necessary theoretical support and guidance to the promulgation of relevant policies and regulations,The writer is from this perspective, and hope to be able to serve as a trigger effect.Firstly, this paper introduces the concepts related to money laundering the related definition,. The basic characteristics, the typologies and the process of money laundering.Then the paper presents the related concept of money laundering in banking sector, the money laundering risk exposure in the banking sector, ten typologies in the banking sector and the key indicators for inspecting money laundering risk exposure.Secondly, according to the anti-money-laundering laws begins abroad, it needs to introduce the anti-money-laundering provisions of the United States and France and Germany, which are the most representative international anti-money-laundering countries. Through a comparative study of domestic anti-money-laundering mechanisms in banking sector with the advanced provisions, this thesis summarizes several successful experiences which may be use for domestic anti-money-laundering in banking industry.Thirdly, study reality of China's banking industry anti-money-laundering,emphasizing on internal control system, know your customer system, large and suspicious transaction and other relevant state regulation to anatomize vulnerability of anti-money-laundering of banking in China. Meanwhile, the thesis progress several policy recommendations for strengthening anti-money-laundering effort from the perspectives of both the monitoring agency and banking industry.Subsequently, through a case in domestic banking, we realize that domestic banking industry face with the hidden dangers of money-laundering.The thesis detailed analyses hidden dangers of money-laundering in banking. The thesis holds that mechanism of anti-money-laundering of banking in China exists several problems:imperfection of domestic anti-money-laundering, lack of anti-money-laundering motivation in banking, lack of the specialized talents of anti-money-laundering, no further in education of anti-money-laundering,etc.Finally, this paper puts up several suggestions on improving mechanism of China'anti-money-laundering in banking sector. It is pointed out that, it 's necessary to takefollowing steps to establish such mechanism suitable for our conditions: first, improve common sense of anti-money-laundering in domestic banking industry; second, establish motivation mechanism of anti-money-laundering for the commercial banks; third,perfect law system of anti-money-laundering of banking; forth, perfect customer classification of money-laundering risk grade in banking; five, enhance controlling of the risk of money-laundering in Non face-to- face business in banking; six, bring the intermediary institutions into subject of anti-money-laundering duty; seven, enhance construction of troops of anti-money-laundering and cultivate experts of anti-money-laundering in banking; eight, strengthen anti-money-laundering supervision in banking, etc. To support, aid and press commercial banks further attach importance to anti-money-laundering, to strengthen construction of institutions, to improve effect of anti-money-laundering in banking.