Chinese Regulator Tightens Scrutiny of AML/CTF Programmes at Banks, Insurers
06 Jan 2020

The CBIRC (China Banking and Insurance Regulatory Commission) has issued a new circular on improving the effectiveness of AML/CTF programmes in the banking and insurance sectors.

The circular applies to all banks (including foreign banks), financial asset management companies, insurance companies and insurance asset management companies.

According to the circular, the CBIRC and its local offices will start to include AML/CTF compliance in its daily supervision activities, including in on-site inspections, to ensure banks and insurers have put in place effective internal controls to manage money laundering and terrorism financing risks.

Banks and insurers are asked to increase investment in AML/CTF resources, strengthen training for employees, and improve their capabilities to prevent money laundering and terrorism financing.

They are additionally 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).

For 2019, banks and insurers must submit their annual reports by 15 February 2020.

Banks and insurers are also required to submit interim reports to the CBIRC (or its local bureaus) 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

Read more at Regulation Asia

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