China promulgated on Friday the Administrative Measures for Special Anti-Money Laundering Preventive Measures, which will take effect on Feb 16.
The measures require financial institutions to assume primary responsibility for implementing special preventive actions against money laundering, terrorist financing, and the financing of proliferation of weapons of mass destruction.
Under the rules, financial institutions must establish and improve internal control systems for special anti-money laundering preventive measures, conduct risk identification and assessment, and adopt management measures commensurate with identified risks.
Financial Institutions are required to continuously monitor and promptly obtain relevant designation lists issued by competent authorities, and to screen all customers, transaction counterparties, and business activities against these lists.
When a listed individual or entity, or its agents, affiliates, or directly or indirectly controlled organizations, are identified, financial institutions must immediately cease providing financial or other related services and promptly restrict the transfer of relevant funds and assets.
Where assets are jointly owned or controlled and cannot be clearly divided, institutions are required to apply restrictive measures to the entirety of such assets. Financial institutions must not provide prior notice to the affected parties before implementing these measures.
The measures further require financial institutions to report in writing, without delay, to the People's Bank of China or its branches on actions taken, restricted funds or assets, and attempted transactions.
Failure to fulfill these obligations will subject financial institutions and responsible personnel to penalties in accordance with China's Anti-Money Laundering Law, said the document.
