Central Bank Governor Yi Gang: The revision of the Anti-Money Laundering Law has been initiated to increase anti-money laundering penalties

According to the central bank's official website on June 24, Yi Gang, governor of the People's Bank of China, said in his speech at the 31st 3rd plenary meeting of the Financial Action Task Force that after the recent joint mutual evaluation of China by the International Monetary Fund, the Financial Action Task Force, the Eurasian Group on Money Laundering and Countering the Financing of Terrorism, and the Asia-Pacific Group on Money Laundering, China has also significantly increased its national anti-money laundering and anti-terrorist financing efforts. In this regard, Yi Gang revealed four major developments :

First, we have initiated the revision of the Anti-Money Laundering Law to further improve the legal system and study and resolve the main issues pointed out in the mutual evaluation report.

Second, we continue to strengthen the national anti-money laundering and anti-terrorist financing coordination mechanism, and include anti-money laundering and anti-terrorist financing work in the agenda of the Financial Stability and Development Committee of the State Council.

Third, we will broaden the scope of anti-money laundering supervision, enhance the effectiveness of anti-money laundering supervision, and increase the intensity of anti-money laundering penalties.

Fourth, we have further consolidated the legal basis for international cooperation.

The full text is as follows:

Speech by Yi Gang, Governor of the People's Bank of China, at the 31st Plenary Session of the Financial Action Task Force

Dear Guests,

I am very happy to join you today for the Financial Action Task Force (FATF) Plenary Session. If it were not for the pandemic, I would have been in China to welcome you all. Thanks to everyone's joint efforts, we finally met via video. Here, I would like to sincerely congratulate the FATF and all delegations for the successful holding of the first video plenary session.

In response to the epidemic, China has introduced a series of powerful monetary policy tools and related measures, including providing liquidity support to the banking industry, strengthening credit support for key areas such as medical and health care and market entities such as small and micro enterprises, reducing financing costs, and issuing credit support plans for small and micro enterprises. In May, the growth rate of broad money M2 was 11.1%, a relatively high level in the past three years. The above comprehensive measures have achieved good results. Since the second quarter, my country's major economic indicators have shown good signs of recovery. In the field of anti-money laundering and anti-terrorist financing, the People's Bank of China attaches importance to preventing new crime risks related to the epidemic, and promptly issues guidelines to guide them to take flexible measures appropriately in accordance with the FATF risk-based principles.

The epidemic in China has been largely brought under control, and social life and economic activities have recovered at a faster pace.

Ladies and gentlemen, global challenges call for global action. FATF leads the world in combating illegal financial activities and maintaining the integrity of the financial system. We are honored to serve as the FATF presidency and play a constructive role in promoting the implementation of FATF's mission. With the strong support and joint efforts of all parties, FATF has achieved a series of results during China's presidency, including preventing and controlling the risks of virtual assets and "stablecoins", issuing digital identity guidelines, improving regulatory effectiveness, combating illegal wildlife trade, strengthening the FATF global network, and promoting significant progress in the FATF strategic review.

I understand that if it is an on-site meeting, the FATF plenary meeting will traditionally last for a week, but due to the epidemic, this plenary meeting was extended to one month. In order to prepare for the topics discussed at today's plenary meeting, support the successful holding of the plenary meeting and the successful conclusion of China's presidency, all delegations and working groups have worked tirelessly and made great efforts. On behalf of the People's Bank of China, I would like to express my sincere thanks to you all!

Ladies and gentlemen, following the recent joint mutual evaluation of China by the International Monetary Fund, the Financial Action Task Force, the Eurasian Group on Money Laundering and Countering the Financing of Terrorism, and the Asia-Pacific Group on Money Laundering, China has also significantly stepped up its national efforts in combating money laundering and terrorist financing. In this regard, I would like to share four major developments.

First, we have initiated the revision of the Anti-Money Laundering Law to further improve the legal system and study and resolve the main issues pointed out in the mutual evaluation report.

Second, we continue to strengthen the national anti-money laundering and anti-terrorist financing coordination mechanism, and include anti-money laundering and anti-terrorist financing work in the agenda of the Financial Stability and Development Committee of the State Council.

Third, we will broaden the scope of anti-money laundering supervision, enhance the effectiveness of anti-money laundering supervision, and increase the intensity of anti-money laundering penalties.

Fourth, we have further consolidated the legal basis for international cooperation.

Ladies and gentlemen, FATF continues to play an important role in maintaining the soundness of the global financial system. China will continue to support the work of FATF. We welcome Germany to take over the presidency. I will also continue to encourage my colleagues at the People's Bank of China to work closely with you to push the work of FATF to a new level!

Finally, I wish this plenary session a complete success and wish you and your family good health!

Thanks!

Editor: Bi Fengzhi

Source: 21st Century Business Herald