The Financial Action Task Force (FATF) has published its follow-up report evaluating China’s progress in tackling the technical compliance deficiencies identified in the country’s Mutual Evaluation Report. This report also assesses China’s progress in following new FATF Recommendations that have been updated since July 2018.
Since its last evaluation in 2019, China has made significant changes to improve its AML/CFT framework. Thus, on the FATF recommendation on ‘regulation and supervision of financial institutions’, China’s compliance rating has changed from partially compliant to largely compliant. Similarly, on its recommendation on ‘guidance and feedback’, FATF re-rated the country from partially compliant to largely compliant. The FATF upgraded China’s rating for ‘new technologies’ from partially compliant to largely compliant.
Overall, of the 40 FATF recommendations, China is compliant on 7, largely compliant on 18, partially compliant on 9 and not compliant on 6. The FATF has determined that China will stay in enhanced follow-up. The country must work further to improve its compliance to AML/CFT recommendations and report back to the FATF.
