Anti-Money Laundering Law of the People's Republic of China

Anti-Money Laundering Law of the People's Republic of China Order of the President (No. 56) The Anti-Money Laundering Law of the People's Republic of China, which was adopted at the 24th meeting of the Standing Committee of the 10th National People's Congress of the People's Republic of China, is hereby promulgated and shall come into force on January 1, 2007. President of the People's Republic of China Hu Jingtao October 31, 2006 Anti-Money Laundering Law of the People's Republic of China (Adopted at the 24th meeting of the Standing Committee of the 10th National People's Congress) Table of Contents Chapter I General Provisions Chapter II Anti-money Laundering Supervision and Administration Chapter III Anti-money Laundering Obligations of Financial Institutions Chapter IV Anti-money Laundering Investigation Chapter V International Anti-money Laundering Cooperation Chapter VI Legal Liabilities Chapter VII Supplementary Provisions Chapter I General Provisions Article 1 The present Law is formulated for the purpose of preventing money-laundering, safeguarding the financial order and cracking down on the crime of money-laundering as well as other relevant crimes. Article 2 The term "anti-money laundering" as mentioned in the present Law refers to an act of adopting the relevant measures according to the provisions of the present Law to prevent any money laundering activity for the purpose of concealing or disguising, by all means, the sources and nature of criminal proceeds generated from any drug-related crime, organizational crime of any gangland, terrorist crime, crime of smuggling, crime of corruption or bribery, crime of disrupting the financial management order, crime of financial fraud, etc.. Article 3 A financial institution as established within the territory of the People's Republic of China or a special non-financial institution that shall perform the obligation of anti-money laundering shall adopt relevant measures for prevention and supervision according to law, establish and improve a clients' identity identification system, a preservation system of clients' identity materials and transactional records, a reporting system of large sum transactions and doubtful transactions, and perform its anti-money laundering obligations. Article 4 The administrative department of anti-money laundering of the State Council shall take charge of the anti-money laundering supervision and administration throughout the country. The relevant departments and organs under the State Council shall, within their respective scope of functions and duties, perform their obligations of anti-money laundering supervision and administration. The administrative department of anti-money laundering of the State Council, the relevant departments and organs under the State Council and the judicial organs shall coordinate with each other in their anti-money laundering work. Article 5 Any client's identity material or transactional information as acquired in the performance of the duties and functions of anti-money laundering according to law shall be kept confidential. None of the aforesaid information may be provided to any entity or individual in the absence of relevant provisions of law. The clients' identity materials and transactional information as acquired by the administrative department of anti-money laundering or any other department or organ bearing the obligation of anti-money laundering supervision and administration according to law in the process of performing their anti-money laundering functions and duties shall only be used in the administrative anti-money laundering investigation. The clients' identity materials and transactional information as acquired by the judicial organ according to the present Law shall only be used in the criminal litigation on anti-money laundering. Article 6 Where any organ or functionary bearing the anti-money laundering obligation submits a report on large sum transaction or doubtful transaction according to law, it shall be protected by law. Article 7 Where any entity or individual finds any money laundering activity, it/he has the right to tip it off to the administrative department of anti-money laundering or to the public security organ. The organ that accepts a tip-off shall keep confidential the tip-off maker as well as the tipped-off contents. Chapter II Anti-money Laundering Supervision and Administration Article 8 The administrative department of anti-money laundering of the State Council shall organize and coordinate the anti-money laundering work throughout the country, take charge of the supervision over the anti-money laundering funds, formulate, by itself or in collaboration with the relevant financial regulatory bodies under the State Council, the relevant anti-money laundering regulations of financial institutions, conduct supervision and examination on the performance of anti-money laundering obligations by financial institutions, investigate into doubtful transactions within the power limit of its functions and duties, and perform other duties and functions of anti-money laundering as prescribed by law or by the State Council. A dispatched organ of the administrative department of anti-money laundering of the State Council shall, within the power limit as authorized by the administrative department of anti-money laundering of the State Council, conduct supervision and examination of the performance of anti-money laundering obligations by financial institutions. Article 9 The relevant financial regulatory bodies under the State Council shall participate in the formulation of anti-money laundering regulations for the financial institutions under its supervision and administration, require them to establish and improve an internal control system of anti-money laundering and perform the other duties and functions of anti-money laundering as prescribed by law or by the State Council. Article 10 The administrative department of anti-money laundering of the State Council shall establish an Anti-money Laundering Information Center to take charge of accepting and analyzing the reports on large sum transactions and doubtful transactions, report the result of analysis to the administrative department of anti-money laundering of the State Council according to the relevant provisions and perform any other functions and duties as prescribed by the administrative department of anti-money laundering of the State Council. Article 11 The administrative department of anti-money laundering of the State Council may, in order to perform its duties and functions of supervising the anti-money laundering funds, collect the necessary information from the relevant departments and organs of the State Council, and the latter shall provide assistance. The administrative department of anti-money laundering of the State Council shall circulate, on a periodic basis, the anti-money laundering work to the relevant departments and organs of the State Council. Article 12 Where the customs finds that any cash or bearer securities that any person carries exceeds the prescribed sum, it shal......