Chinese banks need to firm up AML compliance

Author: Karry Lai | Published: 16 May 2018

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. Their attention has centered in particular on money flowing into China from the overseas Chinese community, and out of China, through fraud designed to avoid evade export controls.

"It is very obvious that the issue has triggered alarm in both US and Europe," he said.

That was then

In October 2017, the People’s Bank of China (PBOC) issued a notice on Strengthening the Client Identification of Anti-Money Laundering to improve...