The Federal Deposit Insurance Corporation (FDIC) and the China Banking Regulatory Commission (CBRC) have entered into an agreement to enhance cooperation and coordination on cross border resolutions.

The online sale of lottery tickets has been banned from Jan. 2 by a circular jointly issued by the Ministry of Finance, the Ministry of Civil Affairs and the General Administration of Sports. Telecommunications regulators will punish those caught selling tickets online and violators could face prosecution.

On June 29 the China Banking Regulatory Commission (CBRC) issued a notice on “Improving Risk Management and Services for Internet Banking Business”, which requires commercial banks to adopt “dual confirmation” mechanisms to authenticate online users for high risk internet banking transactions before the end of 2007.

The People’s Bank of China (PBC) has recently announced a series of measures to improve the efficiency of personal banking and payment services. One of the most significant improvements is to raise the daily cashing limit on ATM card from ￥5,000 to ￥20,000.

This article discusses China’s new AML law and examines its key provisions in comparison with existing laws and regulations. The law, which will become effective on 1 January 2007, signals the escalation of the Chinese government’s AML efforts and has significant implications for multinationals doing business in or with China.

GTNews

On December 14, 2006 the Hong Kong Monetary Authority (HKMA) and eight credit and debit card scheme operators in Hong Kong announced the launch of a Code of Practice for Payment Card Scheme Operators. The Code sets out general principles covering operational reliability, data and network security, and the efficiency and transparency of payment card operations in Hong Kong and will be effective from January 1, 2007.

The Law of the People’s Republic of China on Anti-Money Laundering was endorsed on October 31, 2006 and will enter into effect as of January 1, 2007. The AML law establishes the anti-money laundering responsibilities of the People’s Bank of China as the competent authority under the State Council.

China’s State Council has announced that new regulations on foreign-funded banks will come into effect on December 11.

A nationwide personal credit database, as a platform shared by commercial banks, collects and keeps personal credit information, has officially started its operation in January 2006 after one year of trial operation.