Anti money laundering refers to a set of laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income. Though anti-money-laundering (AML) laws cover a relatively limited range of transactions and criminal behaviors, their implications are far-reaching.
DEFINITION of Combating the Financing of Terrorism (CFT) Combating the Financing of Terrorism (CFT) involves investigating, analyzing, deterring and preventing sources of funding for activities intended to achieve political, religious or ideological goals through violence and the threat of violence against civilians.
Know your customer, alternatively known as know your client or simply KYC, is the process of a business verifying the identity of its clients and assessing their suitability, along with the potential risks of illegal intentions towards the business relationship.
The Bank Secrecy Act (BSA), also known as the Currency and Foreign Transactions Reporting Act, is legislation passed by the United States Congress in 1970 that requires U.S. financial institutions to collaborate with the U.S. government in cases of suspected money laundering and fraud.
Anti-Money Laundering Directive
The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
China Banking and Insurance Regulatory Commission (CBIRC)
China Banking and Insurance Regulatory Commission officially unveiled
On 8 April 2018, China Banking and Insurance Regulatory Commission (CBIRC) was formally unveiled in Beijing, marking the official launch of the new regulatory authority into operation.
In the first quarter of 2018, with effective measures taken by the banking and insurance regulators, substantial progress has been made in preventing risks, handling irregularities and misconducts, shoring up weak links, facilitating reforms and boosting service capabilities, which further consolidated the efforts of guiding capital to serve the real economy while maintaining the steady and sound operations of the banking and insurance industries. Banking assets grew steadily with liquidity further enhanced and loan quality remaining stable. Capital and provisions rose steadily with risk resilience further stepped up. The insurance sector has made efforts to transform and improve its product structure. The protection type business has grown steadily and its capability to serve the overall interest of the society has grown stronger. Performance of insurance asset investment is steadily improving. The solvency status of the whole industry is strengthening.
Going forward, under the guidance of the central government, the CBIRC will stick to its mandates, and remain resolutely committed to its regulatory priorities of guarding against and resolving significant financial risks. Meanwhile, the CBIRC will continue its efforts to deepen the reform and opening-up of the banking and insurance sectors as well as guiding the two sectors to enhance their efficiency in providing quality services to the real economy in the new era.