On January 1, 2025, China implemented a comprehensive Anti-Money Laundering (AML) Law, marking a significant advancement in its efforts to combat financial crimes and illegal wildlife trade (IWT). This legislation introduces a risk-based approach, compelling financial institutions to reassess strategies for managing money laundering (ML) risks associated with their clients.
Key amendments include expanding the scope of predicate crimes for money laundering to encompass “other crimes,” aligning with international standards. The law clarifies regulatory responsibilities, enhances obligations for financial institutions, and introduces beneficial ownership requirements. It also mandates special preventive measures against ML, including ceasing financial services for UN Security Council-sanctioned targets, and addresses emerging risks such as those involving virtual assets.
In December 2024, TRAFFIC China collaborated with Peking University Law School to host a forum discussing the law’s implementation. The event gathered 50 participants from various sectors, including the People’s Bank of China, China Customs, and major financial institutions. Discussions emphasized the importance of AML approaches in investigating wildlife crime, with 88% of participants reporting an increased understanding of applying AML laws to combat such offenses.
This law represents not only a significant milestone in China’s domestic fight against financial crimes but also reinforces its role as a responsible global player in combatting illicit activities. By integrating international standards and addressing modern threats like virtual assets and wildlife trafficking, the legislation sets a strong foundation for deeper collaboration with global regulatory bodies, enhancing collective efforts to dismantle financial networks enabling criminal enterprises.
