FATF: CHINA AML/CFT ASSESSMENT FOLLOW-UP REPORT

On 6 October, FATF released a follow-up report to the 2019 mutual evaluation report (MER) on China.  China has been in an enhanced follow-up process following the adoption of its MER and, in line with the FATF Procedures for mutual evaluations, the country has reported back to the FATF on the action it has taken since then. Consequently, to reflect China’s progress, the FATF has now re-rated the country on the following Recommendations:

3 – Money laundering offence, from partially compliant to largely compliant;

8 – Non-profit organisations, from partially compliant to largely compliant;

16 – Wire transfers, from partially compliant to largely compliant;

18 – Internal controls and foreign branches and subsidiaries, from partially compliant to compliant;

29 – Financial intelligence units, from partially compliant to largely compliant; and

38 – Mutual legal assistance: freezing and confiscation, from partially compliant to compliant.

Therefore, China is compliant on 9 of the 40 FATF Recommendations and largely compliant on 22.  It remains partially compliant on 3 Recommendations and non-compliant on 6 Recommendations.  It will remain in enhanced follow-up and will report back to the FATF on progress achieved on improving the implementation of its AML/CFT measures.

https://www.fatf-gafi.org/media/fatf/documents/reports/fur/Follow-Up-Report-China-2021.pdf

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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