On Anti-money Laundering Supervision over Specific Non-financial Institutions in China

As Chinese authorities strengthen consistently the supervision of financial institutions,in order to avoid regulatory,money laundering criminals gradually shift to specific non-financial institutions that have been regulated weakly. Therefore, the surreptitious activity of money laundering crime becomes trickier,and the form and approach of crime is getting more diversified and complicated. Law of P. R. C on Anti-Money Laundering,in taking specific non-financial institutions into anti-money laundering scope,stipulates that both specific non-financial institutions and financial institutions have the same anti-money laundering obligation. However,Law of PRC on Anti-Money Laundering does not specifyclearly the scope and the obligation of specific non-financial institutions which fulfill anti-money laundering,and there are almost no related laws and regulations. Furthermore,since specific nonfinancial institutions and financial institutions have different nature,scope of business activities and characteristics,which are easy to be used by criminals,the provisions in Law of PRC on Anti-Money Laundering that specific non-financial institutions should perform anti-money laundering operations become dead letter,resulting in the absence of anti-money laundering regulation on specific nonfinancial institutions. To enhance anti-money laundering regulation of specific non-financial institutions and to prompt them to undertake responsibilities of anti-money laundering,it is necessary to establish laws and regulations,to complete measures,and to solve the difficulties in anti-money laundering operations,ensuring the implementation of Law of P. R. C on Anti-Money Laundering.