China threatens money launderers with higher fines
PENG QINQIN and LIAO ZHAOLONG, 03 June 2021
China is planning to beef up its law against money laundering with higher fines and a broader scope, according to a draft revision that would be the first update to the law in more than 14 years.
The People’s Bank of China (PBOC) on Tuesday released a draft of the revised Anti-Money Laundering Law that aims to adapt to changing financial practices and growing money laundering risks at home and abroad.
The revision would extend the scope of the law, which came into effect in 2007, to improve enforcement against terrorist financing and stipulate nonfinancial parties’ obligations in preventing money laundering. It would also increase fines for violating the law and failing to comply with preventive measures. Continue reading “Article: China threatens money launderers with higher fines”
China ups fines and widens scope of draft money laundering law
Stella Qiu, Lusha Zhang and Tony Munroe, 01 June 2021
BEIJING (Reuters) – China’s central bank on Tuesday issued a revised draft anti-money laundering law, under which fines for certain offences would rise to as much as 10 million yuan ($1.6 million) and a host of non-financial institutions would be brought within its scope.
The draft, which updates proposals first made in 2006, would include the likes of property developers, accounting firms and precious metal exchanges, according to a copy of the draft law posted by the People’s Bank of China (PBOC) on its website. Non-bank payment firms, online microlenders, financial asset management firms and financial leasing companies will also be included. Continue reading “Article: China ups fines and widens scope of draft money laundering law”
Chinese Factories Delay New Orders as Costs Rise, Risking Global Supply Shortages
Stella Yifan Xie, 01 June 2021
HONG KONG—Buffeted by rising costs, some Chinese manufacturers are refusing to accept new orders or are even considering shutting down operations temporarily—moves that could put more strain on global supply chains and cause more inflation.
Surging raw-material prices and a shortage of workers have pinched smaller Chinese manufacturers, including many that sell their products to the U.S. and other Western markets. While many have passed their higher costs on to overseas buyers, the pain is so severe at some manufacturers that they are finding it hard to raise prices enough to make up the difference. Others don’t want to risk losing business to competitors. Many are now looking for other solutions to avoid losing money. Continue reading “Article: Chinese Factories Delay New Orders as Costs Rise, Risking Global Supply Shortages”
UPDATE 2-China’s yuan pulls back after officials warn against speculation
Winni Zhou, Samuel Shen and Andrew Galbraith, 31 May 2021
SHANGHAI, May 31 (Reuters) – The yuan hit a three-year high against the dollar on Monday before falling back following a chorus of warnings from Chinese officials against speculative bets on the currency.
A former senior official at the foreign exchange regulator joined a slew of current and former officials on Monday cautioning against one way bets on the yuan, which has seen a two-month long rally against the dollar. In a commentary in the official China Securities Journal, Guan Tao warned against herd behaviour that could harm market order and weigh on China’s exporters. Continue reading “Article: UPDATE 2-China’s yuan pulls back after officials warn against speculation”
Chinese regulators vow to crack down on yuan exchange manipulation
Reuters, 28 May 2021
Chinese regulators including the central bank will crack down on manipulation of the forex market, according to a statement published on the central bank’s website on Thursday.
The regulators said the current foreign exchange market is largely balanced and the yuan could move in either direction in the future. They reiterated no change to the country’s currency policy, which is a managed floating exchange rate system based on market supply and demand, with reference to a basket of currencies.
The currency policy is “suitable for China’s national conditions and should be adhered to in the long run,” the statement said. Continue reading “Article: Chinese regulators vow to crack down on yuan exchange manipulation”