Anti-money Laundering Law of China entered into force on 1 Jan. 2007.

There are 37 articles in total. The Law aims to prevent money-laundering, maintain the financial order, and restrain the crime of money-laundering and other related crimes.

The key points are as follows:

1.As the competent department for anti-money laundering of the State Council, the People’s Bank of China shall organize and coordinate the anti-money laundering work throughout the country.

2.Financial institutions shall, in accordance with the provisions of the present Law, establish and improve their internal control systems for anti-money laundering.

3.If the People’s Bank of China or any its provincial branches finds any doubtful transaction, if an investigation and verification is therefore required, it may conduct an investigation into the related financial institutions.

4.The People’s Bank of China shall, pursuant to the authorization of the State Council, represent the Chinese government to make anti-money laundering cooperation with foreign governments and related international organizations.