China's regulatory system of anti-money laundering
("AML") and combating the financing of terrorism
("CFT") aims to secure national security and maintain the
stability of the financial market. In 2019, the Financial Action
Task Force ("FATF") published the fourth-round mutual
evaluation report on mainland China, showing gaps in meeting the
FATF standards. Since then, the country has made great efforts and
progress in strengthening its AML/CFT system. Key developments and
trends include:
1. Compliance with international standards
China has made further steps to close gaps towards the FATF
standards. By November 2022, China was compliant or largely
compliant on 31 out of 40 FATF Recommendations, as shown in Figure 1 compared with 22 in the 2019 FATF Mutual Evaluation.
