Legals
Chapter 1 General Rules
Article 1 This Law is formulated to prevent money laundering activities, maintain financial order, and curb money laundering and related crimes.
Article 2 The term “anti-money laundering” as used in this law refers to the prevention of drug crimes, organized crimes of a triad nature, and terrorist activities in order to prevent the , smuggling, embezzlement and bribery, disrupting financial management order, financial fraud and other criminal proceeds and money laundering activities of the source and nature of the proceeds, and taking relevant measures in accordance with the provisions of this Law.
Article 3 Financial institutions established within the territory of the People"s Republic of China and specific non-financial institutions that are required to perform anti-money laundering obligations shall take preventive and monitoring measures in accordance with the law , establish and improve the customer identification system, customer identity information and transaction record preservation system, large transaction and suspicious transaction reporting system, and fulfill anti-money laundering obligations.
Article 4 The anti-money laundering administrative department of the State Council is responsible for the national anti-money laundering supervision and management. Relevant departments and agencies of the State Council shall perform anti-money laundering supervision and management duties within the scope of their respective duties. The anti-money laundering administrative department of the State Council, relevant departments, agencies and judicial organs of the State Council shall cooperate with each other in anti-money laundering work.
Article 5 The customer identity information and transaction information obtained from the performance of anti-money laundering duties or obligations in accordance with the law shall be kept confidential; and personal offers. The customer identity information and transaction information obtained by the anti-money laundering administrative department and other departments and institutions legally responsible for anti-money laundering supervision and management can only be used for anti-money laundering administrative investigations. The customer identity information and transaction information obtained by judicial authorities in accordance with this law can only be used in anti-money laundering criminal proceedings.
Article 6 Institutions that perform anti-money laundering obligations and their staff submit reports of large-value transactions and suspicious transactions in accordance with the law, which are protected by law.
Article 7 Any unit or individual who discovers money laundering activities has the right to report it to the anti-money laundering administrative department or public security organ. The organ that accepts the report shall keep the whistleblower and the content of the report confidential.
Chapter II Anti-Money Laundering Supervision and Management
Article 8 The anti-money laundering administrative department of the State Council organizes and coordinates the national anti-money laundering work, is responsible for anti-money laundering fund monitoring, formulates or cooperates with the State Council on financial supervision and management Institutions formulate anti-money laundering regulations for financial institutions, supervise and inspect financial institutions" performance of anti-money laundering obligations, investigate suspicious transaction activities within the scope of their duties, and perform other duties related to anti-money laundering stipulated by laws and the State Council. The dispatched offices of the anti-money laundering administrative department of the State Council shall, within the scope of the authorization of the anti-money laundering administrative department of the State Council, supervise and inspect the performance of financial institutions" anti-money laundering obligations.
Article 9 The relevant financial supervision and management institutions of the State Council participate in the formulation of anti-money laundering regulations for financial institutions under supervision and management, and propose that financial institutions under supervision and management should establish and improve them in accordance with the regulations Comply with the requirements of the anti-money laundering internal control system, and perform other duties related to anti-money laundering stipulated by laws and the State Council.
Article 10 The anti-money laundering administrative department of the State Council shall set up an anti-money laundering information center, which is responsible for receiving and analyzing reports of large-value transactions and suspicious transactions, and reporting to the State Council in accordance with regulations The anti-money laundering administrative department shall report the analysis results and perform other duties as prescribed by the anti-money laundering administrative department of the State Council.
Article 11 In order to perform the anti-money laundering fund monitoring duties, the anti-money laundering administrative department of the State Council may obtain necessary information from relevant departments and agencies of the State Council. Departments and institutions should provide. The anti-money laundering administrative department of the State Council shall regularly notify the relevant departments and agencies of the State Council of the anti-money laundering work.
Article 12 Customs shall notify the anti-money laundering administrative department in a timely manner if they find that the cash and bearer securities carried by individuals entering or leaving the country exceeds the specified amount. The amount standard to be notified in the preceding paragraph shall be prescribed by the competent anti-money laundering administrative department of the State Council in conjunction with the General Administration of Customs.
Article 13 Anti-money laundering administrative departments and other departments and institutions legally responsible for anti-money laundering supervision and management discover transactions suspected of money laundering crimes, and shall promptly Report to the investigative authority.
Article 14 When approving the establishment of a new financial institution or the establishment of a branch by a financial institution, the relevant financial regulatory authority of the State Council shall review the anti-money laundering internal control system of the new institution. plans; applications for establishment that do not comply with the provisions of this law shall not be approved.
Chapter III Anti-Money Laundering Obligations of Financial Institutions
Article 15 A financial institution shall establish and improve an anti-money laundering internal control system in accordance with the provisions of this Law. Implementation is responsible. Financial institutions shall set up special anti-money laundering institutions or designate internal institutions to be responsible for anti-money laundering work.
Article 16 Financial institutions shall establish customer identification systems in accordance with regulations. When a financial institution establishes a business relationship with a customer or provides a one-time financial service such as cash remittance, cash exchange, bill redemption, etc. of a specified amount or more, the financial institution shall require the customer to present a true and valid identity certificate or other identity certification document, and verify and verify the same. register. Where a client handles business on behalf of another person, the financial institution shall check and register the identity documents or other identity certification documents of the agent and the principal at the same time. If the beneficiary of the contract is not the client himself, the financial institution shall also check and register the beneficiary"s identity document or other identity certification documents when establishing a business relationship such as personal insurance and trust with a client. Financial institutions shall not provide services or conduct transactions with unidentified customers, and shall not open anonymous or pseudonymous accounts for customers. If the financial institution has doubts about the authenticity, validity or completeness of the previously obtained customer identity information, it shall re-identify the customer. When any unit or individual establishes a business relationship with a financial institution or requires a financial institution to provide it with one-time financial services, it shall provide a real and valid identity certificate or other identity certification documents.
Article 17 Where a financial institution identifies a customer through a third party, it shall ensure that the third party has taken customer identification measures that meet the requirements of this Law; Where customer identification measures that meet the requirements of this Law are taken, the financial institution shall bear the responsibility for failing to perform the obligation of customer identification.
Article 18 Financial institutions may verify customer identity information with public security, industrial and commercial administration and other departments when they deem it necessary.
Article 19 Financial institutions shall establish a system for keeping customer identity information and transaction records in accordance with regulations. During the existence of the business relationship, if the customer identity information is changed, the customer identity information shall be updated in a timely manner. Customer identity information shall be kept for at least five years after the end of the business relationship and after the end of the transaction. When a financial institution goes bankrupt or dissolves, it shall hand over the client"s identity information and client transaction information to the institution designated by the relevant department of the State Council.
Article 20 Financial institutions shall implement the reporting system for large-value transactions and suspicious transactions in accordance with regulations. Financial institutions shall promptly report to the Anti-Money Laundering Information Center if a single transaction handled by a financial institution or a cumulative transaction within a specified period exceeds the specified amount or if suspicious transactions are found.
Article 21 The specific measures for financial institutions to establish a customer identification system, customer identity information and transaction record preservation system shall be jointly established by the anti-money laundering administrative department of the State Council Formulated by the relevant financial supervision and management agencies of the State Council. The specific measures for reporting large-value transactions and suspicious transactions by financial institutions shall be formulated by the administrative department for anti-money laundering under the State Council.
Article 22 Financial institutions shall carry out anti-money laundering training and publicity in accordance with the requirements of the anti-money laundering prevention and monitoring system.
Chapter IV Anti-Money Laundering Investigation
Article 23 If suspicious transactions are found by the anti-money laundering administrative department of the State Council or its provincial offices and need to be investigated and verified, it may be conducted with financial institutions Financial institutions shall cooperate with the investigation and provide relevant documents and materials truthfully. When investigating suspicious transactions, there shall be no less than two investigators, who shall present legal certificates and an investigation notice issued by the anti-money laundering administrative department of the State Council or its provincial offices. Financial institutions have the right to refuse the investigation if there are fewer than two investigators or if legal documents and investigation notices are not presented.
Article 24 To investigate suspicious transaction activities, you may ask relevant personnel of financial institutions to explain the situation. An inquiry record should be made. The transcript of the interrogation shall be submitted to the person being interrogated for verification. If there are omissions or errors in the records, the person being interrogated may request supplements or corrections. After the interviewee confirms that the transcript is correct, he shall sign or seal it; the investigator shall also sign the transcript.
Article 25 If further verification is required during the investigation, it may be consulted with the approval of the person in charge of the anti-money laundering administrative department of the State Council or its provincial agency. , Copy the account information, transaction records and other relevant materials of the object under investigation; documents and materials that may be transferred, hidden, tampered with or damaged may be sealed. Investigators should seal up the documents and materials, and they should make a clear check with the staff of the financial institution present, and make a list on the spot in duplicate, which should be signed or sealed by the investigators and the staff of the financial institution present. Volume for reference.
Article 26 If the suspicion of money laundering cannot be ruled out after investigation, the case shall be immediately reported to the investigating authority with jurisdiction. If the client requests to transfer the account funds involved in the investigation to overseas, with the approval of the person in charge of the anti-money laundering administrative department of the State Council, temporary freezing measures may be taken. After receiving the report, the investigation agency shall promptly decide whether to continue freezing the funds that have been temporarily frozen in accordance with the provisions of the preceding paragraph. If the investigative organ considers that it is necessary to continue freezing, it shall take freezing measures in accordance with the provisions of the Criminal Procedure Law; if it thinks that it is not necessary to continue freezing, it shall immediately notify the administrative department of anti-money laundering under the State Council, and the administrative department of anti-money laundering of the State Council shall immediately notify the financial institution to lift the freezing. Temporary freezing shall not exceed forty-eight hours. If a financial institution fails to receive a notification from the investigative authority to continue freezing within 48 hours after taking temporary freezing measures as required by the anti-money laundering administrative department of the State Council, it shall immediately lift the freezing.
Chapter 5 International Cooperation on Anti-Money Laundering
Article 27 The People"s Republic of China conducts international anti-money laundering cooperation in accordance with the international treaties it has concluded or acceded to, or in accordance with the principle of equality and reciprocity.
Article 28 According to the authorization of the State Council, the anti-money laundering administrative department of the State Council shall, on behalf of the Chinese government, carry out anti-money laundering cooperation with foreign governments and relevant international organizations. Anti-money laundering agencies exchange information and materials related to anti-money laundering.
Article 29 Judicial assistance involving the investigation of money laundering crimes shall be handled by judicial organs in accordance with relevant laws.
Chapter VI Legal Liability
Article 30 The anti-money laundering administrative departments and other departments and institutions legally responsible for anti-money laundering supervision and management shall engage in any of the following acts One, administrative sanctions shall be given according to law:
(1) Conduct inspections, investigations or take temporary freezing measures in violation of regulations;
(2) Disclosing state secrets, commercial secrets or personal privacy that are known to the anti-money laundering;
(3) Violating regulations and imposing administrative penalties on relevant institutions and personnel;
(4) Other acts of failing to perform duties according to law.
Article 31 If a financial institution commits any of the following acts, the anti-money laundering administrative department of the State Council or its authorized dispatcher at or above the level of a city divided into districts The institution shall order it to make corrections within a time limit; if the circumstances are serious, it is recommended that the relevant financial supervision and administration institution order the financial institution to impose disciplinary sanctions on the directly responsible directors, senior managers and other directly responsible personnel:
(1) Failure to establish an anti-money laundering internal control system in accordance with regulations;
(2) Failure to establish a special anti-money laundering agency or designate an internal agency to be responsible for anti-money laundering work in accordance with regulations;
(3) Failure to provide anti-money laundering training to employees in accordance with regulations.
Article 32 If a financial institution commits any of the following acts, the anti-money laundering administrative department of the State Council or its authorized dispatcher at or above the level of a city divided into districts The institution shall order it to make corrections within a time limit; if the circumstances are serious, a fine of not less than 200,000 yuan but not more than 500,000 yuan shall be imposed, and a fine of not less than 10,000 yuan but not more than 50,000 yuan shall be imposed on the directly responsible directors, senior managers and other directly responsible personnel: < br>
(1) Failure to perform the obligation of customer identification in accordance with regulations;
(2) Failure to keep customer identity information and transaction records in accordance with regulations;
(3) Failure to submit large-value transaction reports or suspicious transaction reports in accordance with regulations;
(4) Conducting transactions with unidentified customers or opening anonymous accounts or pseudonymous accounts for customers;
(5) Violating confidentiality regulations and divulging relevant information;
(6) Refusing or obstructing anti-money laundering inspections and investigations;
(7) Refusing to provide investigation materials or intentionally providing false materials. If a financial institution commits the acts in the preceding paragraph, resulting in the occurrence of money laundering consequences, a fine of not less than 500,000 yuan but not more than 5,000,000 yuan shall be imposed, and the directly responsible directors, senior managers and other directly responsible personnel shall be fined not less than 50,000 yuan and 500,000 yuan The following fines; if the circumstances are particularly serious, the anti-money laundering administrative department may suggest that the relevant financial supervision and management agency order it to suspend business for rectification or revoke its business license. For the directors, senior management personnel and other directly responsible personnel of financial institutions that fall under the circumstances specified in the preceding two paragraphs, the anti-money laundering administrative department may suggest that the relevant financial supervision and management agency order the financial institution to impose disciplinary sanctions according to law, or suggest that their positions be cancelled according to law. Qualifications, prohibit them from engaging in relevant financial industry work.
Article 33 Anyone who violates the provisions of this law and constitutes a crime shall be investigated for criminal responsibility according to law.
Chapter VII Supplementary Provisions
Article 34 The term “financial institutions” as used in this Law refers to policy banks, commercial banks, credit cooperatives, and postal savings banks that are legally established to engage in financial business. Foreign exchange institutions, trust investment companies, securities companies, futures brokerage companies, insurance companies, and other institutions engaged in financial business determined and announced by the anti-money laundering administrative department of the State Council.
Article 35 The scope of specific non-financial institutions that should perform anti-money laundering obligations, the specific measures for their performance of anti-money laundering obligations and their supervision and management shall be determined by The anti-money laundering administrative department of the State Council shall formulate it in conjunction with the relevant departments of the State Council.
Article 36 This Law shall apply to the monitoring of funds suspected of terrorist activities; if other laws provide otherwise, their provisions shall apply.
Article 37 This Law shall come into force on January 1, 2007.
An Interpretation of Anti-Money Laundering Laws
On October 31, 2006, the 24th meeting of the Standing Committee of the Tenth National People"s Congress reviewed and approved the Anti-Money Laundering Law of the People"s Republic of China, which came into force on January 1, 2007. The promulgation and implementation of this law will play a very important role in preventing money laundering activities, maintaining financial order, and curbing money laundering crimes and related crimes.
1. Background and necessity of formulating the Anti-Money Laundering Law
In recent years, with the deepening of my country"s financial reform, my country"s financial institutions have realized the strategy of "bringing in" and "going out", accelerating the opening of the financial industry to the outside world, and promoting the internationalization of the banking industry. Financial institutions can facilitate the flow of funds and provide various means of capital conversion, including opening accounts, checks, transfers, remittances and other financial instruments, which are objectively easy to be used by criminals as a channel for money laundering and become their depository. A tool for entering or transferring stolen money. Once black money enters the banking system, it is easily legalized. Transnational money laundering and terrorist funds may flood into my country"s financial system during the "introduction" process, causing the entire financial market to be impacted, thereby affecting the operational security of the financial system. The involvement of financial institutions in money laundering activities not only seriously damages the reputation of financial institutions, but also brings huge legal and operational risks.
In view of the need to crack down on corrupt elements and cut off domestic terrorist organizations and ethnic separatist forces to obtain funds for their activities through money laundering financing, there is also an urgent need to formulate anti-money laundering laws. Some domestic criminals such as corruption, bribery, smuggling, drug trafficking, and financial fraud often transfer the proceeds of crime overseas through money laundering. The amount involved is huge, especially the escape of corrupt officials who are hated by the general public. Usually, cross-border transfer of corrupt funds is used to evade legal attacks. Domestic terrorist activities and ethnic separatist forces also obtain financial support from overseas organizations and individuals through financing, and engage in sabotage activities in the country, which is extremely harmful to national security and social stability.
In the context of economic globalization and capital flow internationalization, money laundering activities are more and more transnational (border) characteristics, and continue to spread from developed countries to developing countries. The international community is increasingly realizing that it is difficult to contain and combat transnational money laundering by relying on the strength of one country, and international cooperation in anti-money laundering must be strengthened by regulating and coordinating domestic and international legislation. my country has ratified the United Nations Convention against Illicit Trafficking in Narcotic Drugs and Psychotropic Substances, the United Nations Convention against Transnational Organized Crime, the United Nations Convention against Corruption and the International Convention for the Suppression of the Financing of Terrorism, etc. Member states are clearly required to establish and improve anti-money laundering legal systems. Many important international multilateral cooperation mechanisms that my country has participated in, such as the United Nations Security Council, the Asia-Pacific Economic Cooperation, the Asia-Europe Meeting, the G20 Finance Ministers and Central Bank Governors Meetings, etc., have made preventing and combating money laundering and terrorist financing an important topic. Bilateral cooperation on anti-money laundering and anti-terrorist financing is also an important part of bilateral meetings between my country and many countries. The Chinese government has also made a clear commitment to actively participate in anti-money laundering and anti-terrorist financing cooperation on different occasions, and strengthen the prevention and combat against money laundering and terrorist financing.
The Chinese government has always attached great importance to anti-money laundering work. In 1997, it formulated the legal provisions to punish the crime of money laundering with Article 191 of the Criminal Law as the core. The People"s Bank of China has also formulated the "Anti-money Laundering Regulations for Financial Institutions", "Administrative Measures for the Reporting of Large-value and Suspicious Payment Transactions in Renminbi", and "Administrative Measures for the Reporting of Large-value and Suspicious Foreign Exchange Fund Transactions by Financial Institutions" (hereinafter referred to as one regulation and two measures) , constitutes an anti-money laundering prevention and monitoring system with laws, administrative regulations and departmental rules as the main body, and plays a certain role in preventing and combating money laundering. However, my country"s anti-money laundering legal system at that time was far from meeting the basic requirements of my country"s anti-money laundering law enforcement agencies and the subject of anti-money laundering obligations for legal basis, nor could it meet the legal requirements of the international anti-money laundering conventions approved by my country"s legislature for the signatories of the conventions. At that time, my country"s anti-money laundering work mainly had the following problems:
1. The anti-money laundering legal level is not high, and the legal effect is limited. At that time, the most important legal basis for the anti-money laundering practice in the financial industry was a regulation and two measures promulgated by the People"s Bank of China in 2003, and its legal effect belongs to departmental regulations. Due to the low legal level and limited legal effect of the three regulations, the coordination with other relevant legal systems is poor, and some of them even have contradictions and conflicts. For example, although one regulation and two measures stipulate the reporting system of large and suspicious transactions by banks, the Commercial Bank Law does not stipulate the obligation of banks to report large and suspicious financial transactions of customers to relevant departments. On the contrary, it stipulates Bank"s obligation of confidentiality to depositors.
2. Anti-money laundering laws have a narrow jurisdiction. The scope of implementation of one regulation and two measures of the People"s Bank of China covers the banking financial institutions legally established and operating financial business within the territory of the People"s Republic of China, including policy banks, commercial banks, credit cooperatives, postal savings and remittance institutions, Foreign-funded banks, etc., but there are no regulations on the anti-money laundering obligations of other financial institutions other than depository, such as insurance, securities, futures and other operating institutions, and specific non-financial institutions other than the financial industry, such as real estate, jewelry, pawn, auction and other operating institutions. Due to the limitations of the central bank"s legislative power, the anti-money laundering practice of the departmental regulations issued by the central bank can only be limited to the jurisdiction of the People"s Bank of China, and there is no situation in which banks, insurance and securities institutions work together to fight money laundering.
3. The anti-money laundering law does not stipulate an authoritative competent department that can organize and coordinate the national anti-money laundering work, resulting in a lack of coordination and cooperation among various systems and departments. Anti-money laundering is a systematic project involving a wide range of areas, which requires the participation and support of public security, finance, taxation, industry and commerce, customs, foreign exchange management, and financial institutions. In the actual operation process, my country still lacks an authoritative coordination mechanism to link these departments. The lack of a coordination mechanism makes various departments unconsciously align with local interests on the issue of anti-money laundering. In the face of fierce competition to increase deposits and maintain customer base, some banks tend to shirk their anti-money laundering responsibilities under the pretext of strictly protecting customer secrets and safeguarding customers" "legitimate" rights and interests. Local or sectoral protectionism is a major obstacle to investigating money laundering crimes. In order to obtain more investment, some local governments often do not explore the real source of funds, and this is often used by some criminals, making it difficult to effectively investigate and deal with money laundering crimes in some departments and systems with serious protectionism. .
TwoThe concept of money laundering and common money laundering methods
(1) The concept of money laundering
A more popular saying is that the term money laundering originated in the 1920s. A restaurant owner in San Francisco found that dirty coins often stained customers" beautiful gloves, so he put the coins circulating in the restaurant into detergent for washing. This is the original meaning of money laundering. In the 1930s, the Godfather of American gangsters was rampant. Gangs are engaged in various illegal activities, and most of their income is small. If you exchange a small sack of banknotes and coins with a bank, you will definitely be questioned. As a result, the gangs opened a large number of laundromats. A financial expert from the Chicago Mafia bought a coin-operated washing machine and opened a laundromat. Then, when calculating the laundry income of the day every night, add other illegally obtained illicit money into it, then file a tax return, deduct the tax that should be paid, and the remaining illegally obtained money becomes his legal income. Hence the meaning of money laundering.
Although experts from various countries have different opinions on the concept of money laundering, in layman"s terms, money laundering is to take off the illegally obtained "dirty money" or "black money" through a series of means and make it look like it is "clean" money earned "legally".
(2) Common money laundering methods
According to the current cases, the common forms of money laundering in my country mainly include the following:
1. Smuggled out of the country through currency exchange. While criminal groups conduct fraud, smuggling, drug trafficking and smuggling crimes in my country, most of them use currency exchange to smuggle illicit money out of the country.
2. Money laundering through "underground banks". In our country, there are mainly three types of underground banks: one is the underground bank whose main business is illegal exchange. They offer both currency exchange services and cross-border remittance services. Such underground banks are mainly distributed in coastal areas such as Guangdong, Fujian and Shandong. The second is an underground bank with illegal deposits and lending as its main business. Such underground banks are mainly distributed in Zhejiang, Fujian, Yunnan and other provinces, and often appear in the form of Taiwan Association, Biaohui Association, and Mutual Aid Association. The third is an underground bank with illegal mortgage and usury as its main business.
Money laundering through underground banks mainly occurs in some underground banks whose main business is illegal exchange. The money launderers hand over the illegal income directly to the "underground bank" in the form of cash or money order or deposit it into their designated account. The foreign exchange is paid in the account to the account designated by the customer.
3. Using banks and other financial institutions to transfer money illegally. Illegal funds are usually transferred to different places by using bank acceptance bills that do not have a commodity transaction relationship, and after multiple transfers, until the funds cannot be clearly related to their origin, and then start the next round of capital circulation; or use According to the regulation that foreign-funded enterprises can freely remit their income in China, illegal funds are mixed with legal funds through financial institutions and transferred abroad in the form of drafts.
4. Money laundering using cash-intensive industries or under the cover of advertising and consulting. Service industries such as restaurants, supermarkets, bars, hotels, bathing centers, and nightclubs are places of operation with large cash flow. The cost can be large or small, and it is difficult to verify, and they have their own bank account to withdraw cash. Whether it is "black money" or public funds, most of them are paid by cheque and then withdrawn. On the surface, these are normal operations, nothing special. However, through one in and one out, the check becomes cash, which has been spent in name and actually flows into personal pockets from public or unknown accounts.
Advertising companies and consulting companies are also corporate criminals, especially the money-laundering places that the moths of some state-owned enterprises with good economic benefits such as cigarettes, telecommunications, petrochemicals, and electricity like to patronize. If they want to launder a sum of money, they will sign an advertising or consulting contract with an advertising or consulting company. The contract states that the money will be used for the company to hold a press conference or for project consulting, and this press conference or Project consulting is simply non-existent. Criminals send corporate checks to advertising companies to cash out, and get the company"s formal invoices. In return, companies typically receive an "activity fee" of 20% of the contract price.
5. Use of "shell companies" for money laundering or terrorist financing. Many transnational criminal organizations generally set up commercial or productive companies at home and abroad, or open multiple accounts in several banks in the name of shell companies, and then use the guise of "international trade" between these companies. ”, transfer the proceeds of crime across the country through the bank’s international settlement system, or fabricate false financial statements, falsely report turnover and profits, pay various taxes and fees, and frequently change accounts without any business activities. Laundering money for criminals or raising funds for terrorist or separatist activities.
6． Money laundering through insurance companies. Insurance "money laundering" is mainly concentrated in the life insurance sector, especially in group life insurance. A typical practice is that companies first purchase insurance policies with checks in the name of the unit, and distribute huge amounts of money to dozens or even hundreds of employees. In most cases, ordinary employees are unaware of insurance coverage. After a short period of time after the establishment of the insurance contract, it is required to surrender the insurance and get the funds back according to the cash value of the insurance policy, so as to complete the money laundering process, transfer the public funds of the state into the "small treasury" of the unit, turn it into private funds or avoid paying taxes. Purpose. In many cases, the money goes directly into the executives’ pockets.
Since my country stipulates that a person can purchase multiple insurance policies at the same time, money launderers can bleach a large amount of "black money" at one time by this method, and can ask the insurance company to transfer the surrender money to a different account than when the insurance was purchased, and some even require direct Cash back. And some insurance companies also know that their insurance purpose is not pure, but they actively promote this kind of "insurance policy". They pulled more business and charged more fees; and the insurance company that "based on the scale of heroes" completed the task target in a short period of time, and could also deduct a handling fee from the "surrender".
7． Money laundering through various investment vehicles. Money launderers can use the proceeds of crime to buy real estate and other real estate, and can also buy cars, precious metals, diamonds, jewelry, antiques, calligraphy and other movable properties, as well as securities such as stocks and bonds, and then sell or change hands to achieve the purpose of money laundering.
When buying real estate, money launderers often buy it at a low price, pay the seller the shortfall in cash in private, and then sell it at the actual price of the real estate. In this way, the proceeds of crime have a legitimate and legitimate source. Money launderers can also infiltrate funds into the stock market through securities companies, raise the price of the stocks they hold, and then sell the stocks to obtain legal income.
8. Money laundering by investing in businesses. Criminals invest illegal income in corporate entities by purchasing company equity, concealing the illegal nature and source of illegal income.
9. Money laundering through auction houses. For example, money launderers collude with auction houses to overestimate the price of the auction items, and then accomplices bid at high prices. In this way, using the intermediary service of the auction house, the illegal funds can be safely and quickly transferred in the form of huge payment for the collection.
10. Money laundering through gambling. Casinos are the most traditional places for money laundering. Some criminals take the stolen money to the casino and exchange it for chips. Once they lose 10-30% of the money, they will exchange the remaining chips for cash, which logically turns the stolen money into a "clean" income. At this point, he has set up obstacles for possible future pursuits. Because people have become accustomed to losing all their money in the casino, but the argument of winning in the casino is quite acceptable.
11. Money laundering through so-called "overseas investments". The common practice is: when importing, overstate the price of imported equipment and raw materials, pay to foreign suppliers in the form of a high percentage of commissions, discounts, etc., and then take rebates from them, share the stolen money, and transfer the illegal income. Retained in foreign countries; when exporting, the price of exported goods will be greatly reduced, or the difference in payment will be deposited by the foreign importer into the exporter’s account abroad or directly established in an overseas bank by adopting the method that the invoice amount is far lower than the actual transaction amount. personal account. Overseas branches of certain businesses have evolved into specialized money laundering centers. Through agents or children and relatives who immigrated overseas, they use the method of running a leather bag company to launder the black money. In this way, we should not be surprised to hear or see the more legendary situation that the heads of some so-called loss-making Chinese companies, their overseas salesmen and their relatives have become millions in a few years. Rich people have bought villas and luxury cars abroad, and some have become happy foreign "investment immigrants"; if the competent authorities send someone to investigate, they will get some sad reasons for losses. The causes of these situations are closely related to crimes such as corruption, bribery, embezzlement, embezzlement of state-owned assets, etc., and on the other hand, it is also inseparable from a series of money laundering activities that make criminal proceeds a legal guise.
3. Anti-money laundering laws and related systems
1. Customer identification system. Article 16 of the Anti-Money Laundering Law stipulates that financial institutions shall establish a customer identification system in accordance with the regulations. Article 17 stipulates that if a financial institution identifies a customer through a third party, it shall ensure that the third party has taken customer identification measures that meet the requirements of this law; if the third party has not taken customer identification measures that meet the requirements of this law, the financial institution shall Institutions accept responsibility for failure to meet customer identification obligations. Article 18 stipulates that when a financial institution conducts customer identification, it may verify the customer"s relevant identity information with the public security, industry and commerce administration and other departments when it deems necessary.
Customer identification, also known as "know your customer", means that when the subject of anti-money laundering obligations establishes business relations with customers or conducts transactions with them, they should check and record according to legally valid identity documents or other reliable identification materials. The identity of its customers, and update the customer"s identity information in a timely manner during the existence of the business relationship. Customer identification is the basic work to prevent money laundering activities.
According to the relevant provisions of Chinese laws and administrative regulations, the documents that can prove the customer"s identity include: ID card or temporary resident ID card of mainland Chinese residents; household registration book; military ID card; Chinese People"s Armed Police ID card; Mainland Travel Permit or other valid travel documents for Taiwan residents; passports of foreign citizens. For non-natural person entities such as legal persons and organizations, it is necessary to present supporting documents such as business licenses, association legal person registration certificates, etc.
2. Customer identity information and transaction record keeping system. The preservation of customer identity data and transaction information means that financial institutions and certain non-financial institutions take necessary measures in accordance with the law to preserve customer identity data and transaction information for a certain period of time. The main purposes of this system are as follows: First, it can be used as a record and proof for financial institutions and specific non-financial institutions to perform customer identification and transaction reporting obligations; second, it can provide a basis for grasping the real identity of customers, reproducing the process of customer fund transactions, and discovering suspicious transactions. The third is to provide necessary evidence for the investigation, investigation, prosecution and trial of illegal and criminal activities. This system is one of the important contents of the anti-money laundering system. It is stipulated in the anti-money laundering legislation of various countries and is also a general requirement of relevant international anti-money laundering conventions and standards.
Article 19 of the Anti-Money Laundering Law stipulates that financial institutions shall establish a system for keeping customer identity materials and transaction records in accordance with regulations. During the existence of the business relationship, if the client"s identity information is changed, the client"s identity information shall be updated in a timely manner. Customer identity information shall be kept for at least five years after the end of the business relationship and after the end of the transaction. When a financial institution goes bankrupt or dissolves, it shall hand over the client"s identity information and client transaction information to the institution designated by the relevant department of the State Council.
3. Large value and suspicious transaction reporting system. Article 20 of the Anti-Money Laundering Law stipulates that financial institutions shall implement the reporting system for large-value transactions and suspicious transactions in accordance with regulations. Financial institutions shall promptly report to the Anti-Money Laundering Information Center if a single transaction handled by a financial institution or a cumulative transaction within a specified period exceeds the specified amount or if suspicious transactions are found. Article 12 stipulates that if the customs finds that the cash and bearer securities carried by individuals entering or leaving the country exceeds the specified amount, it shall notify the anti-money laundering administrative department in a timely manner.
Large-value transaction reporting refers to the reporting by financial institutions and specific non-financial institutions of capital transactions over a specified amount to the FIU in accordance with the law, including large-value cash transaction reports and large-value transfer transaction reports.
Although the large-value transfer transaction report is not necessarily related to money laundering and other illegal and criminal activities, it is still of great significance to anti-money laundering work: First, through the macro analysis of large-value transfer transactions, it can help determine the industries, regions and industries that need to be paid attention to in anti-money laundering. The second is to cross-analyze the collected suspicious transaction report and the large-value transfer transaction information, which is helpful to determine whether the suspicious transaction is indeed suspected of a crime. Clues; Fourth, through cross-analysis and verification of large-value transfer transactions, it is conducive to the anti-money laundering information center to actively find clues about capital transactions suspected of criminal activities.
Suspicious transaction report means that the subject of anti-money laundering obligations suspects or has reason to suspect that a certain fund is the proceeds of criminal activities or is related to terrorist financing, and should immediately report to the financial intelligence agency as required. This is the core anti-money laundering measure stipulated by the anti-money laundering laws of various countries.
There is no absolute and objective standard for the identification of suspicious transactions, but it has many different characteristics and doubts compared with ordinary normal transactions. These transactions with different characteristics and doubts are most likely manifestations of money laundering crimes. In order to facilitate the identification of suspicious transactions by the staff of financial institutions, it is necessary for the anti-money laundering authorities to formulate reporting standards for suspicious transactions. Reporting standards for foreign exchange transactions.
The anti-money laundering laws of the United States, Australia and other countries also stipulate the reporting system for large-value cash transactions. The reported amount is US$10,000 and AUD10,000 respectively. The reporting subject is any person engaged in trade or commerce, and cash dealers.
4. Establish an internal control system, set up special anti-money laundering agencies or designate internal agencies to be responsible for anti-money laundering work. Article 15 of the Anti-Money Laundering Law stipulates that a financial institution shall establish and improve an anti-money laundering internal control system in accordance with the provisions of this Law, and the person in charge of a financial institution shall be responsible for the effective implementation of the anti-money laundering internal control system. Financial institutions shall set up special anti-money laundering institutions or designate internal institutions to be responsible for anti-money laundering work. Article 14 stipulates that when examining and approving the establishment of a new financial institution or the establishment of a branch by a financial institution, the relevant financial supervision and administration authority of the State Council shall review the plan of the new institution"s anti-money laundering internal control system; the application for establishment that does not comply with the provisions of this Law shall not be approved .
[Introduction to the author] Huang Taiyun, deputy director of the Criminal Law Office of the Legal Affairs Commission of the Standing Committee of the National People"s Congress.
How to Avoid Anti-Money Laundering
Know your customers and put anti-money laundering first
The main hidden danger of anti-money laundering work is that the teller does not implement the customer identification system in place, and "knowing the customer" is an important means to avoid such risks, and it is a must adhere to in the anti-money laundering of the financial industry. important principles.
(1) Know your customer principle
Most foreign "anti-money laundering laws" require natural persons, legal persons and other organizations, including accounting firms, to deal with their clients Make a comprehensive understanding, that is, know your customer principles. The primary goal of Know Your Customer is to effectively detect and report suspicious behavior through verification of customer identities and knowledge of business behavior, because unless you have a solid understanding of your customers and can predict their business behavior, you cannot Reasonably and effectively detect abnormal, perhaps suspicious, behavior from customers" daily, habitual behavior. Often this understanding is achieved through appropriate and due diligence Survey to get a full understanding. Therefore, certified accountants should prudently verify the identity of customers and understand the business of customers in accordance with the requirements of anti-money laundering regulations in their daily business. behavior.
According to the requirements of "Financial Action Task Force 40 Recommendations", the review procedures for the know-your-customer principle include:
(1) Confirm the identity of the direct customer, that is to say know who or what subject the customer is;
(2) When verifying the identity of the client, reliable and independent documents, data or materials should be used;
(3) Confirm actual ownership and control - confirm what natural person ultimately owns and controls the direct customer, and/or the actual beneficiary of the transaction;
(4) Verify the identity of the actual owner of its client and/or the actual beneficiary of the transaction;
(5) Ongoing due diligence and scrutiny - conducting ongoing scrutiny of transactions and accounts during the existence of business relationships with clients to ensure ongoing transactions and financial institutions" understanding of clients, clients" businesses, and client risk profiles. Understand the consistency and, if necessary, identify the source of funding.
(2) How does our company prevent customers from "return money laundering"
First, in accordance with the principle of "know your customer", conduct customer due diligence and conduct real-name verification of the customer"s identity. Secondly, in accordance with the principle of "know your customer", flexibly judge the change of funds and understand whether the source of funds of the customer is reasonable. Thirdly, in accordance with the principle of "know your customer", strengthen the sales management of wealth management products.
