Illegal Drug Trade in The People's Republic of China - Drug-related Money Laundering

Drug-related Money Laundering

In the past money laundering was not considered a significant problem in China. However, with the booming economy promoting greater trade investment and the ever-increasing number of foreign bank branches opening throughout the country, it appears that China may become an emerging money laundering center.

China, however, has taken some initial steps to begin investigation of money laundering activities. An Economic Crimes Investigation Department was established in the Ministry of Public Security to focus on illicit activities. The People's Bank of China (China's central bank) began several structural reforms such as the establishment of two new divisions, the Payment Trade Supervisory Division and the Money Laundering Working Division. The People’s Bank of China also prepared guidelines for use by financial institutions to report suspicious transactions, and to sensitize the public about new regulations on money laundering and terrorist financing issues.