Respected Mr.Markov, Mr. Sassoon, Deputy Governor Chen Cheng，Ladiesand Gentlemen,
Good Morning!
First of all,please allow me, on behalf of the People’s Bank of China (PBC) and in my ownname, to express our warmest congratulations on the grand opening of SeventhPlenum of Eurasian Group on Combating Money Laundering andFinancing of Terrorism (EAG), and our warmest welcome to members andobservers of EAG . It is a great opportunity for Chinato host the Seventh Plenum of EAG, and we wish that the successful holding ofthis meeting will promote the communication and cooperation between China and members and observers of EAG in AML/CFT area.
Money launderingand financing of terrorism is a malignant tumor in mankind's social economicand political life. Money laundering activities help the criminals evade legalsanction, breed illegal activities and crimes, disrupt economic and financialorder, undermine organization of economic activities and the country'scredibility, impair social justice; while financing of terrorism breedsterrorism, seriously threatens global security and sustainable economicdevelopment. Especially since the mid 1900s, with the deepening of economic andfinancial globalization, organized crimes such as international drug-relatedcrime and smuggling have become increasingly rampant, money launderingfunctions as a fund life line connecting terrorism, drug smuggling, graft andbribery, and has spread from developed countries to developing world. It iswidely accepted that international community should collaborate with eachother, standardize and coordinate domestic and international legislation, onlyin this way can the international financial order and national economicsecurity be safeguarded and the global economic and social development befacilitated.
Chinese governmentattaches great importance to AML/CFT work. Premier Wen Jiabao called forforceful actions on money laundering crimes in his 2005 Government Work Report.AML is not only the requirements of cracking down upon illegal and criminalactivities, safeguarding sound and fair market economy, but also an integralpart of striving to realize sustainable economic development and build aharmonious socialist society.
In recent years,Chinese government has made a lot of achievements in areas such as implementinginternational norms, perfecting AML legal and regulatory framework andsupervision.
The Law onAnti-Money Laundering was enacted on January 1, 2007 after it was adopted by the National People'sCongress. This is a milestone in China's AML legislation process, which will havefar-reaching effect on China's AML work. In February 2006, NationalPeople's Congress passed the sixth Amendment to Criminal Law, whichbroadened the definition of money laundering to include crime of graft andbribery, crime of disrupting financial order and financial fraud, and madesubstantial amendment to Article 312 of the Criminal Law concerning"the crime of concealing, transferring, purchasing or sellingbooties".
As the competentauthority for Anti-Money Laundering in China,pursuant to the Law on Anti-Money Laundering, the PBC has promulgated aseries of rules and regulations independently or with collaboration with otherfinancial regulatory agencies. Thus, China has basicallyestablished the AML/CFT legal and regulatory system.
This year, afterAML program is effectively implemented in the banking sector, securities andinsurance sectors are also incorporated into the AML supervisory system. In themeantime, supervision over core areas in AML such as client identification,reporting of large and suspicious transactions, and preservation of transactionrecords has been strengthened. And the financial institutions' obligation inreporting large and suspicious transactions in financing of terrorism has alsobeen clarified.
The PBC has justconvened the ministerial joint conference on anti-money laundering attended byleading officials from 23 ministries and commissions. At the meeting, in linewith Action Plan on Improving China's AML/CFT submitted to the FATFplenum in June, 2007, a work plan for future AML was discussed, which includeda study program to explore the possibility of incorporating some specificnon-financial industries into the AML supervisory system, and establishing ofan AML information exchange channel between the PBC and the Customs.
China is an important member of theinternational community. After 30 years of reform and opening up to the outsideworld, the Chinese economy is showing unprecedented vitality. In the meantime,as one of the harbors of global exchange of fund, technology, information andpeople, China is of irreplaceable strategic significanceto the global efforts in AML/CFT. And a series of adamant and effectivemeasures taken by China fully shows China’sresponsible attitude towards AML/CFT.
China’s participation in the founding of theEurasian Group on Combating Money Laundering and Financing of Terrorism (EAG)is an important milestone in its international cooperation on AML/CFT. Sinceits establishment, the EAG has been playing an increasingly important role inregional AML/CFT areas. Through the platform of EAG, cooperation between Chinaand other members in AML/CFT has been strengthened, which creates a solidfoundation for joint efforts in striking the “three forces” that jeopardize thesecurity in central Asia and safeguarding national securities.
On June 28, 2007, FATF held its third meeting of the 18thPlenum in Paris, and discussed and passed the evaluationreport of China’s AML/CFT system, and unanimously adopted China as its formal member. Obtaining FATF membership is animportant fruit China has achieved after many years’ efforts, and it alsorepresents another milestone of international cooperation between China andoutside world on AML/CFT area, showing that the achievements made by China in arelatively short time has been recognized by international community, and Chinais willing to resume responsibility and play its due role in internationalAML/CFT.
China’s FATF membership after Russia will surely deepen international cooperation between China and its friendly neighbors (including EAG members),as well as the cooperation between the EAG members and the broaderinternational community. And this will also help promote internationalcooperation in the comprehensive and effective implementation of relevantinternational standards on AML, thus holding great significance in combatingthe crimes of money laundering and corruption, and safeguard regional andinternational economic and social security.
Combating moneylaundering and financing of terrorism is both our shared target andresponsibility. Let’s join hands to enhance our cooperation in this area so asto contribute more to safeguarding regional and global economic and socialsecurity, sustaining regional economic growth, and building a world of lastingpeace, prosperity and harmony.
To conclude myspeech, I wish the Seventh Plenum of EAG a great success and all theparticipants good health in Sanya!
Thank you!
