CAMLMAC(China Anti-Money Laundering Monitoring and Analysis Center)

The China Anti-Money Laundering Monitoring and Analysis Center (CAMLMAC) is China’s financial intelligence unit (FIU). CAMLMAC was formed in 2004 under the People’s Bank of China (PBoC).

CAMLMAC is the central unit of China’s AML/CFT system. It works in coordination with regulators and law enforcers through cooperation with the PBC’s Anti-Money Laundering Bureau and provincial branches. However, China’s decentralized FIU framework and institutional weaknesses place restraints on overall efficiency, necessitating continuous reforms.

What are the functions of CAMLMAC?

CAMLMAC performs a wide range of tasks to strengthen AML in China and support efficient financial intelligence operations:

• Gathering, processing, and securely storing data of large-value and suspicious transactions.
• Processing transaction data to detect unusual trends and support investigations.
• Supporting PBoC departments and local branches with AML examinations in multiple areas.
• Sharing intelligence with regulatory institutions and requests for information.
• Distributing financial information to international FIUs and foreign partners.
• Overviews the country’s national AML database and creates monitoring and analysis tools.
• Analyzes trends, methods, and new risks of money laundering to inform preventive measures.
• Sets technical standards and reporting requirements in collaboration with regulatory offices.

How does CAMLMAC interact with financial institutions for reporting and compliance?

CAMLMAC is the central platform used by Chinese financial institutions to meet AML/CFT compliance. Banks, insurance companies, and certain non-financial institutions are mandated to submit STRs and LTRs in a uniform format for routine scrutiny. The center uses automated tools, pattern matching, and AI-based analysis to detect suspicious transactions and emerging risks.

In addition to analyzing transaction information, CAMLMAC also offers guidance in the form of red-flag alerts, warnings, and compliance counsel. It also conducts training workshops and seminars for compliance officers to improve their skills.

Structured feedback also enables institutions to respond to reporting deficiencies and internal controls. Such a comprehensive approach ensures strong AML systems, consistent with national law and international standards.

What regulations govern CAMLMAC and financial institutions in China?

CAMLMAC operates in accordance with the People’s Republic of China Anti-Money Laundering Law (AML Law, 2006, revised in 2016) and a set of supporting regulations issued by the People’s Bank of China (PBoC). The laws require banks, insurers, securities firms, and certain non-financial institutions to report suspicious and large-value transactions. They also implement effective Know Your Customer (KYC) and Customer Due Diligence (CDD) procedures and actively engage with CAMLMAC in financial crime supervision and prevention.

The supervisory system provides CAMLMAC with the legal authority to collect, analyze, and share financial intelligence with other supervisory institutions. This power also applies to the law enforcement agencies, which include the Ministry of Public Security and the China Securities Regulatory Commission.

Furthermore, PBoC rules also highlight requirements on record-keeping, internal controls, and compliance audits. These rules make sure that appropriate and effective AML/CFT practices are maintained within institutions.

Together, these CAMLMAC regulations and laws constitute a complete legal basis for supervision in China. They help China meet international best practices, such as FATF recommendations. They also enhance the nation’s ability to detect and deter money laundering and terrorist financing threats.

How does CAMLMAC fit into China’s AML/CFT framework?

CAMLMAC is China’s AML/CFT analytical and monitoring center, which functions under the People’s Bank of China (PBoC) according to international standards like the FATF 40 Recommendations. CAMLMAC serves as a liaison between financial institutions, regulators, and law enforcement agencies to facilitate the early detection of suspicious transactions and trends in crime.

Through its analysis of banks, insurers, and other reporting entities, CAMLMAC supports system-wide risk assessments, uncovers complex laundering schemes, and strengthens information sharing with agencies like FIC China. Through these functions, the centre enhances the stability of the financial system, raises transparency, and reduces exposure to illicit financial flows.

What are the compliance expectations for AML-obligated entities in China?

Chinese financial institutions and some non-financial institutions are required to have strong Know Your Customer (KYC) and Customer Due Diligence (CDD) procedures in place in order to know the identity, background, and risk profile of their customers. They are mandated to report suspicious transactions and large transactions to China’s anti-money laundering centre and keep accurate records to assist in their inspections and audits.

In addition to reporting, institutions must have robust internal controls, risk analyses, and employee training programs in place to deter money laundering, terrorist finance, and other criminal activities. These are the responsibility of both domestic and foreign institutions, standardizing AML/CFT compliance in the financial industry.

Non-compliance can lead to administrative sanctions, fines, reputational risk, or intensified supervisory monitoring. Through fulfillment of these obligations, institutions contribute to enhancing the integrity, transparency, and stability of China’s financial system and lending weight to national and international AML/CFT requirements.

Why is CAMLMAC important for global businesses operating in China?

CAMLMAC is the core regulator of AML/CFT compliance in China, and it is mandatory that multinational businesses and overseas financial institutions align their reporting needs and guidelines with it. Compliance prevents businesses from struggling with cross-border risks, improving internal controls, and ensuring the timely filing of STRs and LTRs. Coordination with Chinese authorities such as the PBoC, CBIRC, and CSRC is also enabled, minimizing the risk of fines or business disruptions. By adhering to CAMLMAC’s guidelines, international businesses retain their integrity, protect their image, and conform to global AML/CFT best practices.