China Banking and Insurance Regulatory Commission (CBIRC) has issued a new circular on improving the effectiveness of AML/CTF programmes in the banking and insurance sectors applicable to all banks (including foreign banks), financial asset management companies, insurance companies and insurance asset management companies.
This circular was issued following China’s tenth meeting of the AMLJMC (Anti-Money Laundering Joint Ministerial Conference), held in Beijing on 26 December 2019. At this meeting, Policymakers and regulators emphasised the importance of AML work to safeguard national economic and financial security, crack down on financial crime, and align national governance capabilities with global standards.
To ensure that banks and insurers have effective internal controls in place to manage money laundering and terrorism financing risks, the CBIRC and its local offices will start to include AML/CTF compliance in its daily supervision activities, including in on-site inspections.
Banks and insurers have been asked to increase their investment in AML/CTF resources, strengthen training for employees, and improve their capabilities to prevent money laundering and terrorism financing. Additionally, they are also required to submit annual reports on their AML/CTF programmes within 20 working days after the end of each year. These should be completed using a given template and submitted to the CBIRC (or its local bureaus).
Banks and insurers are also required to submit interim reports to the CBIRC when any of following circumstances occurs:
- when major internal control rules concerning AML/CTF are revised
- when the contact methods for AML/CTF personnel have changed
- when matters arise that involve major risks in AML/CTF work
- when a self-assessment or other relevant risk analysis relating to money laundering risk is undertaken
- when overseas branches and affiliates are subject to on-site inspections, administrative penalties, criminal investigations or other major risks by an overseas authority in relation to AML/CTF
- when other AML/CTF matters need to be reported
For 2019, banks and insurers must submit their annual reports by 15 February 2020.
The circular (in Chinese) can be accessed here.
Date: 7 Jan 2020
Argus Global specializes in AML/CTF Measures and regulatory compliance. We can help you determine if your company is up to date with the latest regulations with compliance reviews, and we offer as well ongoing support for all your compliance needs.