Chinese lawmakers are debating revisions to the country’s anti-money laundering law to better address the risks posed by new financial technologies, including cryptocurrencies. The Legislative Affairs Commission announced on September 9 that these changes are needed due to the rapid development of new technologies that make detecting and preventing money laundering more challenging.

Wang Xiang, a spokesperson for the commission, said that the amended law would enhance the ways of identifying and assessing money laundering connected with emerging technologies. These changes will result in companies having to identify and mitigate the risks brought on by innovational models, including but not limited to digital currencies.

The second reading of the draft revision of the Anti-Money Laundering Law will be conducted this week before the Standing Committee of the National People’s Congress, China’s legislature. These changes are intended to better define the scope of anti-money laundering activities and a list of predicate offenses, which are criminal activities associated with more intricate processes such as money laundering.

Furthermore, the revision expands these offenses under a catch-all provision in accordance with China’s Criminal Law as proposed in Clause. This will aid the country to improve in the fight against the unlawful deeds and ascertain the threats of the cryptocurrencies. The changes are also aimed at aligning the Chinese framework of AML with the international standards that China is facing more often.

China’s Central Bank to Address Money Laundering Risks from New Financial Products

According to Wang Xiang, the fast pace at which new technologies and business models are being generated and implemented poses a challenge in the identification of money laundering and subsequent investigation. In response, the current draft revision encourages the central bank and related authorities to make provisions for controlling new types of money laundering risks. Lenders will also need to assess and mitigate the risks emanating from such financial products’ availability and usage.

In the recent past, China has acted to curb money laundering through perceived digital currencies and other online platforms. In the last month, the Supreme People’s Court and the Supreme People’s Procuratorate listed cryptocurrencies, online game coins, and tipping during live streams as possible money laundering tools. Recently, authorities in Beijing busted a large money-laundering syndicate that was undertaking unlawful transactions in virtual currencies, indicating more troubles when it comes to controlling virtual currencies.

The post China Considers Strengthening Anti-Money Laundering Laws to Address Fintech Risks appeared first on Live Bitcoin News.