China Revises Anti-Money Laundering Law to Enhance Financial Security

According to Odaily, the draft amendment to the Anti-Money Laundering Law was submitted for its third review by the Standing Committee of the 14th National People's Congress on the 4th. The revised draft further clarifies the conditions under which financial institutions should implement money laundering risk management measures, aiming to avoid disrupting customers' normal financial activities. The draft specifies that if a customer's transactions do not match the financial institution's knowledge of the customer's identity and risk profile, the institution should further verify the customer's information and transaction details. In cases of high money laundering risk, financial institutions may take necessary measures such as restricting transaction methods, amounts, or frequencies, limiting business types, refusing to conduct transactions, or terminating business relationships. Additionally, the draft improves the dispute resolution mechanism for money laundering risk management measures, stipulating that financial institutions must promptly address objections involving customers' basic and essential financial services. The draft also outlines the legal responsibilities for entities and individuals who fail to implement special anti-money laundering preventive measures as required, and it specifies corresponding legal responsibilities for certain non-financial institutions and related personnel.