The three foundations of anti-money laundering are the three principles of anti-money laundering, as follows:

(1) the principle of lawfulness and prudence, which means that financial institutions should identify suspicious transactions in accordance with the law and in a prudent manner, so as to ensure that they are not inappropriate and do not indulge in any unfair competition, and shall not engage in unfair competition, which will impede the fulfillment of the obligations of anti-money laundering.

(2) The principle of confidentiality means that financial institutions and their staff shall keep the anti-money laundering work secret, and shall not disclose the relevant anti-money laundering work information to customers and other persons in violation of the regulations.

(3) the principle of full cooperation with judicial and administrative law enforcement authorities, means that financial institutions shall assist and cooperate with judicial and administrative law enforcement authorities in combating money laundering activities in accordance with the law, administrative regulations and other relevant provisions to assist the judicial authorities, customs, taxation and other departments to query, freeze and withhold customer deposits.

Anti-money laundering core work: supervision of bulk cash transactions.

Extended Information:

Anti-Money Laundering Supervision and Administration

Anti-Money Laundering Supervision and Administration p>Supervision and management of anti-money laundering

The administrative department of the State Council in charge of anti-money laundering organizes and coordinates anti-money laundering work throughout the country, is responsible for the monitoring of funds for anti-money laundering, formulates, or together with the relevant financial supervisory and regulatory authorities of the State Council formulates, anti-money laundering rules and regulations for financial institutions, supervises and inspects financial institutions in fulfilling their obligations to anti-money laundering, investigates, within the scope of its duties, suspicious transactions, and performs other duties stipulated by the laws and the State Council other duties relating to anti-money laundering.

Dispatching agencies of the State Council's administrative department responsible for anti-money laundering shall, within the scope of authorization of the State Council's administrative department responsible for anti-money laundering, supervise and inspect the fulfillment of anti-money laundering obligations by financial institutions.

The relevant financial supervisory and regulatory authorities under the State Council participate in the formulation of anti-money laundering regulations for financial institutions under their supervision and management, put forward requirements for the establishment and improvement of anti-money laundering internal control systems of financial institutions under their supervision and management in accordance with the regulations, and perform other duties relating to anti-money laundering prescribed by the law and the State Council.

The administrative department in charge of anti-money laundering under the State Council establishes an anti-money laundering information center, which is responsible for receiving and analyzing reports on large-value transactions and suspicious transactions, reporting the results of such analysis to the administrative department in charge of anti-money laundering under the State Council in accordance with the regulations, as well as fulfilling the other duties prescribed by the administrative department in charge of anti-money laundering under the State Council.

The administrative department in charge of anti-money laundering under the State Council may, in order to fulfill its duties of monitoring funds for anti-money laundering, obtain the necessary information from the relevant departments and agencies of the State Council, and the relevant departments and agencies of the State Council shall provide it. The administrative department in charge of anti-money laundering under the State Council shall regularly inform the relevant departments and agencies of the State Council of the anti-money laundering work.

Customs found that individuals entering or leaving the country carrying cash, bearer securities in excess of the prescribed amount, shall promptly notify the administrative department in charge of anti-money laundering. The preceding paragraph should be informed of the amount of standard by the State Council administrative department in charge of anti-money laundering in conjunction with the General Administration of Customs.

The administrative department in charge of anti-money laundering and other departments and organizations legally responsible for the supervision and management of anti-money laundering shall promptly report to the investigating authorities when they discover transactions suspected of money laundering crimes.

When approving the establishment of a new financial institution or the establishment of additional branches of a financial institution, the relevant financial supervisory and regulatory authorities under the State Council shall review the program of the new institution's anti-money-laundering internal control system; and shall not approve an application for establishment that does not comply with the provisions of this Law.

Obligations of Financial Institutions to Combat Money Laundering

Financial institutions shall, in accordance with the provisions of this Law, establish and improve the internal control system to combat money laundering, and the person in charge of the financial institution shall be responsible for the effective implementation of the internal control system to combat money laundering. The financial institution shall establish a specialized anti-money laundering agency or designate an internal body responsible for anti-money laundering.

Financial institutions shall establish a customer identification system in accordance with the regulations. Financial institutions in establishing business relationships with customers or provide customers with a specified amount of cash remittance, cash exchange, bill payment and other one-time financial services, they shall require customers to present a real and effective identity documents or other identification documents, verification and registration.

If the customer is represented by another person to handle the business, the financial institution shall check and register both the agent's and the agent's identity documents or other identity documents.

The establishment of life insurance, trust and other business relationships with customers, the beneficiary of the contract is not the customer himself, the financial institution shall also be the beneficiary's identity documents or other identity documents for verification and registration.

Financial institutions shall not provide services to or conduct transactions with customers whose identity is unknown, and shall not open anonymous or pseudonymized accounts for customers. Financial institutions shall re-identify customers if they have doubts about the authenticity, validity or completeness of previously obtained customer identification information.

Any unit or individual shall provide true and effective identification documents or other identification documents when establishing business relationships with financial institutions or requesting financial institutions to provide them with one-time financial services.

Where a financial institution identifies a customer through a third party, it shall ensure that the third party has taken measures to identify the customer in accordance with the requirements of this Law; where the third party has not taken measures to identify the customer in accordance with the requirements of this Law, the financial institution shall bear the responsibility for failing to fulfill the obligation to identify the customer.

Financial institutions carry out customer identification and, when deemed necessary, may verify the customer's relevant identity information with the public security, industry and commerce administration and other departments.

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

Baidu Encyclopedia - Anti-Money Laundering