Anti-Money Laundering Law by fdjerue7eeu

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									Anti-Money Laundering Law
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The People's Republic of China Anti-Money Laundering Law
(October 31, 2006 the Tenth National People's Congress passed the
twenty-fourth session of October 31, 2006 The People's Republic of
China announced on the 56th presidential order since January 1, 2007
shall come into force)
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Chapter I General Provisions
Chapter II anti-money laundering supervision and management
Chapter III anti-money laundering obligations of financial
institutions
Chapter IV Anti-Money Laundering Investigation
Chapter V of international cooperation against money-laundering
Chapter VI Legal Liability
Chapter VII Supplementary Provisions
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Chapter I General Provisions
The first order to prevent money laundering activities and maintain
financial order, to curb money laundering and related crimes, law is
enacted.
This Law shall be referred to anti-money laundering, is to prevent a
variety of ways to disguise or conceal drug-related crime and
Mafia-type organized crime, terrorist crimes, smuggling, corruption
and bribery, destruction of the financial management order, crime,
financial fraud crimes proceeds of crime and the income source and
nature of money laundering activities, the relevant measures in
accordance with the provisions of this Law acts.
Article III established in the PRC financial institutions and
anti-money laundering obligations shall perform the specific
non-financial institutions, it shall be taken to prevent, control
measures, establish a sound system of customer identification,
customer identification information and transaction record keeping
system, large amount of transactions and suspicious transactions
reporting system, perform anti-money laundering obligations.
Article administrative department of the State Department is
responsible for laundering money-laundering supervision and
administration. State Council departments, agencies in their
respective areas of responsibility to fulfill anti-money laundering
supervision and management responsibilities.
State Department anti-money laundering authorities of relevant State
Council departments, agencies and the judiciary in the anti-money
laundering efforts should complement each other.
Article on anti-money laundering law in performing duties or
obligations to obtain the customer identification information and
transaction information, should be kept confidential; non-accordance
with the law, not to any units and individuals.
Administrative departments and other anti-money laundering law
anti-money laundering supervision and management responsibilities
entrusted departments, agencies perform anti-money laundering
responsibilities obtained customer identification data and transaction
information can only be used for anti-money laundering administrative
investigation.
In accordance with this Law, the judiciary obtained customer
identification data and transaction information can only be used for
anti-money laundering criminal proceedings.
Anti-money laundering obligations to fulfill Article VI institutions
and their personnel shall be submitted to large transactions and
suspicious transaction reports, protected by law.
Article VII Any unit or individual money laundering activities, the
right to the administrative department of anti-money laundering or
public security authorities reported. The authorities shall accept the
report and the reports of informants confidential.
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Chapter II anti-money laundering supervision and management
Article VIII of the administrative department of the State Department
money laundering organization, to coordinate national anti money
laundering, responsible for monitoring money-laundering funds,
formulate, or in conjunction with the State Department on financial
supervision and management of institutions to develop financial
institutions, money-laundering regulations, supervision and inspection
of financial institutions the obligation to fulfill Anti-Money
Laundering situation within the purview of the investigation in the
suspicious transactions, to fulfill the law and the relevant
anti-money laundering provisions of the State Council, and other
duties.
The State Council administrative department of anti-money laundering
agency of the State Council administrative department of anti-money
laundering within the mandate of the financial institutions to carry
out anti-money laundering obligations to conduct supervision and
inspection.
Article financial regulatory bodies under the State Council are
involved in the supervision and administration to develop anti-money
laundering regulations of financial institutions, its supervision and
administration of financial institutions under its anti-money
laundering regulations to establish and improve internal control
system requirements, to fulfill the law and the relevant anti-money
laundering provisions of the State Council other duties.
Article establishment of the State Council administrative department
of anti-money laundering Anti-Money Laundering Information Center,
responsible for large-value transactions and suspicious transaction
reports received, analyzed, and the anti-money laundering under the
State Council administrative department of the report of the outcome,
carry out the State Council administrative department of anti-money
laundering provisions other duties.
Article The State Council administrative department for the
implementation of anti-money laundering money laundering monitoring
duties, from the State Council departments, agencies to obtain the
necessary information, the State Council departments, agencies should
provide.
The State Council administrative department of anti-money laundering
should be relevant to the State Council, agencies regularly informed
of the work of anti-money laundering.
Article XII of the Customs found that any person carries cash or
bearer securities exceeding the prescribed amount shall be promptly
notified to the administrative department of anti-money laundering.
The preceding paragraph shall be informed of the amount of anti-money
laundering standards by the State Council administrative department in
conjunction with the Customs General Administration.
Article XIII of the administrative department of money laundering and
other money laundering supervision and management bear the
responsibility according to law departments, agencies found that the
transactions suspected of money laundering shall promptly report to
the investigating authorities.
Of the State Council approval of the relevant financial regulatory
bodies of financial institutions or new branches of financial
institutions additional time, new institutions should review the
internal control system of anti-money laundering programs; for the
establishment of non-compliance provisions of this Law apply, shall
not be approved.
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Chapter III Anti-Money Laundering obligations of financial
institutions
Article XV of financial institutions in accordance with provisions of
this Law shall establish anti-money laundering internal control
system, financial institutions shall be responsible for anti-money
laundering internal control system on the effective implementation of
responsible.
Financial institution shall establish anti-money laundering or
designate an internal department specialized agency responsible for
anti-money laundering.
Article XVI of financial institutions shall establish a customer
identification system.
A financial institution clients provide customers with business
relations or beyond the prescribed amount of cash remittance, cash
conversion and bill payment Deng off financial service shall, when
required customers to produce a real and effective identity
certificate or other proof of identity, verification and registration
.
Customer by another agent to handle the business, financial
institutions should also be agents of agents and identity cards or
other identification documents for verification and registration.
With clients to establish personal insurance or trust business
relationship, contract De beneficiary not the client himself of, the
financial institution should be the beneficiary identification card
Huozhe other identity document verification and registration.
Unidentified financial institution shall not provide services to
customers or their transactions, not for the customer to open
anonymous or pseudonymous account.
Financial institutions previously obtained customer identification
data of the authenticity, validity or integrity of the doubt should be
re-identification of customer identification.
All units and individuals in establishing business relations with
financial institutions or require financial institutions to provide a
one-time financial services, he shall provide a real and effective
identity certificate or other proof of identity.
Article XVII financial institutions to identify the client's identity
through a third party shall ensure that third parties have been taken
to comply with customer identification requirements of this law
measures; third party fails to adopt this law required customer
identification measures from the financial authorities did not to
fulfill customer identification obligations.
Article XVIII financial institutions customer identification, when
necessary, to the public security, industry and commerce
administration departments to verify the identity of customers.
Article XIX financial institution shall establish a customer
identification information and transaction record keeping system.
Relationship continues to exist in the business, customer
identification information is changed, update the customer
identification information should be.
Customer identification information in the business relationship ends,
the customer transaction information after the transaction should be
kept for at least five years.
Bankruptcy and dissolution of financial institutions, should the
customer identification data and customer transaction information
specified in the transfer of institutions relevant State Council
departments.
Diershitiao financial institutions shall implement large-value
transactions and suspicious transactions reporting system.
Financial institution of any single transaction or the accumulated
transaction within the time limit or exceeds the amount of suspicious
transactions, it shall promptly report to the Anti-Money Laundering
Information Centre.
Twenty-one financial institutions to establish customer identification
system, customer identification data and transaction record keeping
system, formulated by the State Council in conjunction with the State
Council administrative department of anti-money laundering relating to
financial supervision and administration department. Financial
institutions report suspicious transactions, large transactions and
specific measures by the State Council administrative department of
anti-money laundering.
Article 2 Financial institutions shall, according to money laundering
prevention and control system requirements, to carry out anti-money
laundering training, and publicity.
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Chapter IV Anti-Money Laundering Investigation
Article 3 The State Council administrative department of anti-money
laundering or the provincial level, suspicious transactions sent body
needs to investigation and verification, it may investigate the
financial institutions, financial institutions shall cooperate with,
truthfully provide relevant documents and information.
Investigation of suspicious trading activities, the investigation
officer shall not be less than two, and produce anti-money laundering
legal documents and the State Council administrative department or its
representative office at the provincial level investigation notice
issued. Investigators or a failure to produce legal documents and
investigation notices, the financial institution the right to refuse
the investigation.
Article 4 investigating suspicious trading activity, financial
institutions can ask the persons concerned, asking them to explain the
situation.
Record of inquiry shall make inquiries. Record of inquiry should be
cross checked against the person being asked. There are omissions or
errors in the person being interrogated may request additions or
corrections. Was asked after the person confirms a transcript should
be signed or sealed; investigators should also sign the record.
Article 5 requires further verification survey by the administrative
department of the State Department money laundering or the provincial
head of sending institution approved to inspect, copy the survey
account information, transaction records and other relevant
information; of possible been transferred, concealed, altered, or
destroyed the documents, information, can be sealed.
Investigators sealed documents, information, shall, together with the
presence of a clear enumeration of staff of financial institutions, on
the spot inventory in duplicate, by the investigators and staff of
financial institutions present signed or sealed, a pay financial
institutions, with a copy of volume reference.
Article 6 The investigation can not rule out the suspicion of money
laundering must report immediately to the competent investigation
authorities reported. Customer accounts involved in the investigation
to transfer funds abroad, anti-money laundering by the State Council
administrative department head approval, temporary freezing measures
may be taken.
After the investigation organ receives a case, in accordance with the
preceding paragraph that have been temporarily frozen the funds,
should promptly decide whether to freeze. Deems it necessary to
continue to freeze, in accordance with the provisions of the Criminal
Procedure Law to freeze; that does not need to freeze, it shall
immediately notify the State Council administrative department of
anti-money laundering, the State Council administrative department of
anti-money laundering shall immediately notify the financial
institution to lift the freeze.
Not more than 48 hours the temporary freeze. Financial institutions in
money laundering under the State Council administrative department of
the request for interim measures to freeze within 48 hours, did not
receive notice of investigation authorities to freeze and should
immediately lift the freeze.
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Chapter anti-money laundering international cooperation
27th Draft amendment under the international treaties concluded or
acceded to or in accordance with the principles of equality and mutual
benefit and carry out anti-money laundering international cooperation.
Under the State Council administrative department of anti-money
laundering authority under the State Council, on behalf of the Chinese
government with foreign governments and relevant international
organizations to carry out anti-money laundering cooperation with
foreign anti-money laundering institutions according to law and money
laundering relating to the exchange of information and data.
29th deals with legal assistance in money-laundering offenses
investigated by the judicial organs in accordance with relevant laws
and regulations.
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Chapter VI Legal Liability
The third 10 administrative departments and other anti-money
laundering has a anti-money laundering supervision and management
responsibilities according to law departments, agencies involved in
anti-money laundering work in any of the following acts shall be given
administrative sanctions:
(A) contravenes the provisions of inspection, investigation or take
temporary freezing measures;
(B) the disclosure of state secrets, known for anti-money laundering,
commercial secrets or personal privacy;
(C) violation of the provisions of the relevant institutions and
personnel of the administrative penalty;
(D) of the other acts did not perform their duties according to law.
µÚÈýʮһÌõ financial institutions, one of the following acts, money
laundering by the State Council administrative department or its
authorized area of the city dispatched more than one agency order
within a time limit; serious cases, advise the relevant financial
supervisory authorities to order the financial agencies directly
responsible for directors, senior managers and other personnel
directly responsible for disciplinary action:
(A) failing to set up anti-money laundering internal control system;
(B) failing to provide for money laundering or designate an internal
agency specialized agencies responsible for money laundering work;
(3) failing to conduct anti-money laundering training for their
employees.
Before a financial institutions are one of the following acts, the
administrative department of anti-money laundering by the State
Council, or its authorized area above the city level shall be ordered
to correct dispatch agency; serious cases, the Department million over
five hundred thousand yuan shall be imposed, and the directly liable
directors, senior management and other directly responsible personnel
office for more than 10,000 yuan 50,000 yuan shall be imposed:
(A) failing to fulfill obligations of customer identification;
(B) Failing to save the customer identification information and
transaction records;
(C) fails to submit report large transactions or suspicious
transactions reports;
(D) and unidentified customer transactions or for customers to open
anonymous account or pseudonymous account;
(V) breach of confidentiality, disclosure of the information;
(Vi) resist or obstruct anti-money laundering examination or
investigation;
(7) refused to provide any investigation material or providing false
materials.
Financial institutions have the aforesaid acts, resulted in
consequence of money laundering, the Department more than 500,000 yuan
shall be imposed million, and the directly liable directors, senior
management and other officials directly responsible for more than
500,000 yuan 50,000 yuan less penalty; the circumstances are
especially serious, the administrative department of anti-money
laundering may advise the relevant financial regulatory body to stop
operation for rectification or revoke its business license.
Of the circumstances stipulated in the preceding two financial
institutions directly responsible for the directors, senior managers
and other directly responsible personnel, the administrative
department of anti-money laundering may advise the relevant financial
regulatory body to order financial institutions to disciplinary
action, or revoke his tenure , to prohibit him from engaging in the
financial industry.
Thirty-third violation of this law constitute a crime shall be held
criminally responsible.
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Chapter VII Supplementary Provisions
The 34th this Law referred to financial institutions, is established
by law to engage in financial business, policy banks, commercial
banks, credit unions, postal savings institutions, trust investment
companies, securities companies, futures brokerage firms, insurance
companies and the State Council determine the administrative
department of anti-money laundering and published by other
institutions engaged in financial business.
35th shall perform the specific anti-money laundering obligations to
non-financial institutions, the scope of the performance of its
obligations and its anti-money laundering supervision and
administration of specific measures, anti-money laundering by the
State Council administrative department in conjunction with the State
Council.
36th Ìõ suspected of financing terrorist activities, monitoring
applicable law; other law, the application of its provisions.
This Law shall 37th January 1, 2007 shall come into force.
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