BEIJING, China, Thursday, August 22, 2024- China has officially recognized virtual asset transactions as potential vehicles for money laundering, expanding its anti-money laundering (AML) laws to cover these activities.
The Supreme People’s Court and the Supreme People’s Procuratorate announced the new interpretation of AML laws on August 19.
The announcement can be reached here.
This move aims to strengthen China’s regulatory framework in response to the growing use of digital currencies and other virtual assets.
Offenders found guilty of using virtual assets for money laundering face severe penalties, including fines ranging from 10,000 to 200,000 Chinese yuan ($1,400 to $28,000) and potential prison sentences.
The revised AML laws also introduce clearer guidelines for what constitutes “serious circumstances” in money laundering cases.
These include situations where individuals refuse to cooperate with authorities or when the amount being laundered exceeds 5 million Chinese yuan ($700,000).
China has seen a significant increase in money laundering cases involving virtual assets. In 2023, the Supreme People’s Procuratorate reported prosecuting 2,971 individuals for money laundering, a twentyfold increase since 2019.
