China's State Council, the country's cabinet, on Wednesday issued new guidelines in its effort to combat money laundering, terrorism financing and tax evasion, while identifying several loopholes and problems in the current efforts.
The new guidelines are focused on improving relevant laws and regulations, clarifying responsibility for various government agencies and enhancing coordination among the agencies to "effectively rein in risks of money laundering, terrorism financing and tax evasion by 2020," according to the document posted on the central government's website.
The guidelines said that while China has made major progress in building a comprehensive mechanism to fight such illegal activities in recent years with new laws being implemented, "we should also see that there are still some contradictions and problems in related areas."
The main problems are that the regulatory system is not yet complete; coordination is not smooth; and some agencies lack the ability to carry out their duties, according to the guidelines.
The guidelines also directed relevant government agencies to launch a nationwide, inter-agency campaign to crack down on illegal activities in these areas and "severely punish" any companies and individuals found to be involved.
Furthermore, the country will enhance cooperation with international partners in the fight against money laundering, terrorism financing and tax evasion through establishing cooperative mechanisms with certain countries.
China will also work with other countries by educating Chinese financial institutions' overseas branches on how to curb money laundering.
As more and more Chinese companies and financial institutions are expanding into overseas markets, the Chinese government has been stepping up its efforts to rein in money laundering, terrorism financing and tax evasion.
