The China Banking and Insurance Regulatory Commission ("CBIRC") has recently released the Administrative Measures for Anti-money Laundering and Counter-terrorism Financing by Banking Financial Institutions (the "Measures"), immediately effective from the date of issuance.
The Measures, from the perspective of internal control, set out requirements for work on anti-money laundering and counter-terrorism financing for financing institutions in the banking sector, stating that financial institutions in the banking sector shall, under the risk-oriented principle, add the management of money laundering and terrorism financing risks into their own comprehensive risk management system, and establish a sound internal control system against money laundering and terrorism financing. The Measures lay an institutional foundation for the CBIRC to effectively work on the anti-money laundering scrutiny in the banking sector, and create an overall framework for the CBIRC's work on anti-money laundering scrutiny in the banking sector. Furthermore, the Measures, also from perspectives of institutions, business and personnel, make a systematical summary of work requirements for the anti-money laundering market access for the banking sector, calling for tightening the examination of funds used by institutions for making investment or acquiring shares and the background of shareholders, with a view to preventing individuals with illegal attempts from establishing financial institutions to carry out activities for the money-laundering purpose.