People’s Republic of China: Detailed Assessment Report on Anti-Money Laundering and Combating the Financing of Terrorism

IMF Staff Country Reports, June 21, 2019

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This report provides a summary of the anti-money laundering/combating the financing of terrorism (AML/CFT) measures in place in the People’s Republic of China (China) as at the date of the onsite visit (July 9–27, 2018).
It analyzes:
- the level of compliance with the Financial Action Task Force (FATF) 40 Recommendations;
- the level of effectiveness of China’s AML/CFT system;
- and provides recommendations on how the system could be strengthened.

China has undertaken a number of initiatives since 2002 that have contributed positively to its understanding of ML/TF risk, although some important gaps remain.
The report assesses both technical compliance with the FATF 40 Recommendations and effectiveness of the AML/CFT framework (no numerical ratings are reproduced here beyond source content).

Positive developments:
- Multiple initiatives since 2002 have enhanced understanding of money laundering and terrorist financing (ML/TF) risk.
Remaining challenges:
- Important gaps persist in China’s AML/CFT framework that require attention (the report provides targeted recommendations to address these gaps).

China’s framework for domestic AML/CFT cooperation and coordination is described as well established.

The report provides recommendations on how China’s AML/CFT system could be strengthened, addressing:
- compliance with FATF 40 Recommendations;
- improving the effectiveness of the AML/CFT system;
- closing the identified important gaps in existing measures.