In 2019, the People’s Bank of China (PBC) comprehensively implemented the guiding principles of the Financial System Anti-Money Laundering Work Conference. Focusing on improving the effectiveness of anti-money laundering regulation, the PBC vigorously established the regulatory framework underpinned by the two pillars of risk assessment and law enforcement inspection, enhanced the coordination of law enforcement inspection, and further strengthened cooperation with other financial regulators. As a result, regulatory synergy was formed and progress was made in anti-money laundering regulation.
Risk assessment was advanced steadily and the foundation of risk-based regulation was consolidated. In 2019, the PBC adopted new assessment methods and indicators for money laundering and terrorist financing risks, and finished risk assessment for 1,454 incorporated obligatory institutions, including the Export-Import Bank of China, Industrial and Commercial Bank of China, China Construction Bank and Postal Savings Bank of China. In the meantime, the PBC continued to carry out classified rating of obligatory institutions, which is regarded as a major basis for appraising the effectiveness of control measures in risk assessment. The PBC Anti-Money Laundering Bureau organized and finished the classified rating of 24 incorporated obligatory institutions under its direct regulation, and the PBC branches at all levels carried out the classified rating of 46,823 obligatory institutions. Risk-based regulation was continuously strengthened and strict regular oversight was maintained. In 2019, the entire PBC system carried out 658 special law enforcement inspections on anti-money laundering and 1,086 comprehensive ones covering anti-money laundering. Progress was made in regulatory cooperation on anti-money laundering. In 2019, the PBC Anti-Money Laundering Bureau signed a cooperation agreement with the Banking Institution Examination Bureau of China Banking and Insurance Regulatory Commission (CBIRC), specifying the objective, principles and mechanism of joint law enforcement inspections. It also signed a memorandum of cooperation with the Supervision and Inspection Department of the State Administration of Foreign Exchange (SAFE), clarifying their respective responsibilities and cooperation mechanisms for regulatory coordination and clue notification. In addition, the PBC held a special session on anti-money laundering cooperation with CBIRC, during which the PBC and CBIRC further consolidated cooperation results and built consensus, drafted the anti-money laundering cooperation plan in the banking and insurance sectors, and laid a solid foundation for future regulatory cooperation on anti-money laundering.
