China Targets Cryptocurrency in New Anti-Money Laundering Law Revision

In a significant move, China’s lawmakers are set to address emerging money-laundering risks, particularly those associated with cryptocurrency, as they review a draft amendment to the Anti-Money Laundering Law this week. This revision aims to enhance the country’s ability to monitor and analyze new financial threats posed by innovative technologies.

The draft will be presented for its second round of review during the upcoming session of the Standing Committee of the National People’s Congress, which is the highest legislative authority in China. Wang Xiang, the spokesman for the Legislative Affairs Commission of the Standing Committee, emphasized the importance of this revision, stating that it will establish requirements for monitoring new forms of money laundering. This is crucial for improving the nation’s capacity to detect and analyze potential risks associated with these activities.

Additionally, the revision will refine the definition of anti-money laundering efforts by explicitly listing seven types of predicate offenses. These offenses are integral to understanding the complexities of money laundering and organized crime, as they represent the underlying crimes that facilitate such illicit activities.

Furthermore, a comprehensive provision will be introduced to broaden the scope of offenses, ensuring better alignment with existing provisions in China’s Criminal Law. This proactive approach reflects China’s commitment to combating financial crimes and adapting to the evolving landscape of digital currencies and technologies.