The People’s Bank of China (PBOC) is reportedly looking to improve its cross-border cooperation with countries around the world to combat money laundering.
It will work closer with countries around the world including some across Europe, a report from Reuters states. This collaboration with other countries would predominantly focus on AML regulation, financial information exchange and asset recovery, aas well as a number of other areas, the report said.
PBOC’s comments came in response to a previous article of Reuters which cited a senior official at Europol, the European police agency, whom claimed the Baltic states could see an influx of illicit money coming from China and Russia.
Following this statement, PBOC stated it had worked tirelessly to crack down on money laundering, having helped recovery just under one billion pounds in illegal capital between 2014 and 2016. Despite its efforts, the bank stated there is room for improvement and is looking to cooperate with other nations in a bid to do so.
Money laundering is a major threat to the financial markets around the world. The Dankse Bank €200bn money laundering scandal last year, just shows the impact it can have. This is only one example; various banks are being hit with fines for their failures in AML processes.
Last week, the UK’s FCA fined the Bank of Scotland £45.4m for failing to report suspicions of money laundering being conducted by a number of one of its Reading-based branches.
Funds are being deployed into finding solutions. Since 2014, companies building AML solutions have received a total of $2.8bn, making it the second most funded sector of RegTech, according to RegTech Analyst data. Despite this, financial institutions are still at ends tackling the problem.
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