Morris-Cotterill - China - 2002

In 2002, The Bank of China held an internal conference for its most senior officers under the auspices of the then President Liu Ming Kang who went on to become Chairman of the China Regulatory Banking Commission. He is now a member of the Central Committee of the Communist Party of China, that is the core policy-making body of the Chinese Government.

Xinhua, China's national news agency, covered the event: this is their coverage.

Less Use of Cash Helps Counter Money Laundering: Experts

Xinhuanet 2002-04-26 23:26:12

BEIJING, April 26 (Xinhuanet) -- Using cards and cheques allows
banks to trace and monitor the money flow and they may find signs
of money laundering, said Nigel Morris-Cotterill, a British money-
laundering expert, at a conference in Beijing on Friday.

"Untraceable cash creates more chances for money laundering,"
Cotterill said. He was invited by the Bank of China (BOC) to
address a conference on countering money laundering.
Standard Chartered Bank (Hong Kong) Group Investigation Senior
Manager Roger Chow defined money laundering as any process that
conceals the source of illegal income and disguises that income to
make it appear legitimate.

Multi-national banks were often caught out by money laundering
and this resulted in the strict management of accounts, lending
and investment businesses as well as clerk training, he told the
conference.

China didn't face many problems in money laundering two decades
ago since its financial system was generally separated from the
international financial market.

But as the country has gradually opened its economy to the
outside world, the possibility of money laundering has been
increasing.

The BOC had realized this and was improving its anti-money
laundering system in cooperation with its foreign counterparts,
said Zhang Yanling, BOC deputy president.

Last June the BOC established an anti--money laundering
commission headed by its president Liu Mingkang, the first in
China's mainland.

"Money laundering arouses global attention especially after the
September 11 terrorist attack in the United States and any bank
should be ready for that if it intends to expand its
international business," Morris-Cotterill said.

Chinese Minister of Finance Xiang Huaicheng also voiced his
support for combating money laundering and the financing of
terrorism at the 65th meeting of the Development Committee of the
World Bank and the International Monetary Fund (IMF).
Xiang hoped that the international community could fully
incorporate the views of developing countries and allow their
participation in the process of formulating rules and criteria in
this field.

Han Zhubin, Procurator-General of the Supreme People's
Procuratorate pledged to crack down on financial crimes especially
money laundering this year in his working reports to the annual
sessions of the National People's Congress earlier this year.
Different cultural backgrounds caused different problems for
financial sectors in fighting money laundering, Cotterill said.
"The most urgent thing China should do is to standardise its
nationwide financial systems, not only of banks but also other
financial services dealing in cash," he added.

Morris-Cotterill also suggested that China provide more facilities for
transferring money and paying by cheques or bank cards.
-Enditem-

© 2002 Xinhua

http://news.xinhuanet.com/english/2002-04/26/content_374341.htm

Posted here: 30 December 2013