Chinese banks need to firm up AML compliance

Author: Karry Lai | Published: 16 May 2018

KEY TAKEAWAYS:

  • Internationalising Chinese banks are being scrutinised for their lax AML policies;
  • Chinese banks are finding it challenging to meet stricter AML standards in overseas countries as compared to emerging AML standards within China;
  • China has a lot more work to do to strengthen and clarify AML standards and procedures to financial institutions.

Recent cases such as ICBC being investigated for lax anti-money laundering (AML) standards have thrust Chinese banks’ compliance standards into the limelight. Chinese lenders have been sanctioned in the US as well as in various EU countries. According to Johnny Chan, head of legal at Chinese Merchants Securities, it’s clear that overseas regulators have been focusing on major Chinese state-owned financial institutions and gathering evidence in large-scale money laundering for the expatriate Chinese community around Europe and in the US, in particular on money flowing into China from the overseas Chinese community, and out of China, through fraud designed to avoid evade export controls....


 

 

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