A Study Of Improving Domestic Anti-money Laundering System

Since mid 20th century, Money Laundering has been more and more rampant in the world because of the frequent trades in many fields among different countries, and it is a very big harm to a country, society, or a region. On the one hand, when money-laundering people illegally put very large amount of "black money" into the financial departments of government, it can make troubles to stability and safety of the financial order in this country or region, block the economic development. It also connives and shields the upper-reach criminal activities and the international crimes, breaks the normally economic order. It can injure the reputation of the country in the international society, and so may let the country isolated in internationally judicial corporations. On the other hand, through money laundering, those people can legally use their "black money" , and this may make it possible for them to do more crimes, this may also bring different kinds of criminal pollution to the world. The process of money laundering is very complicated, there are lots of different ways to do it, and the methods are continuously changing along the constant innovation of the world trade system and the constant renewing of financial openings from different countries, this makes it very difficult to monitor the illegal money trading. Usually they take three steps which are disposal, isolation, and merging, to let their criminal incomes become legal. To set up and complete the policy on anti money laundering is an important aspect for dealing with money-laundering crime, for standardizing the economic order, and for optimizing the monitor system of finance. Anti money laundering has been more and more brought into the overall strategy by international organizations, the governments of different countries, and the financial institutions, in order to effectively strike corruption, prevent terrorism, and complete the running system of finances. To effectively prevent and strike the international crimes on money laundering, each country and international society began to actively constitute the relevant law and rules, form the special institutes and organizations, and make the international corporation widely in different layers to punish and control the money laundering. Since our country' s reform and opening to the outside world, the judicial cases of money laundering have been increasing, this caused the attention of the government and public, and then they set up the frame of lawful rules step by step on anti money laundering, the frame has the core based on penal code, the rules based on administrative regulations, and the standards based on departmental regulations. This increased the power of anti money laundering and effectively protected the financial order and social stability. But the lawful rules on anti money laundering in our country still need to be improved to complete, the criminal law has rules for only four criminal activities on money laundering. In departmental regulations, the rules on policies of anti money laundering in financial institutes are low in law standards and law effectiveness, it also lacks the precautious regulations for anti money laundering. In order to standardize the rules in finance and taxes and to prevent corruptions, we should set up the complete and integrated law rules on anti money laundering as soon as possible, and modify the relevant rules in criminal law. We should also construct the institutes which are relatively independent to monitor and handle the information on anti money laundering. It is also important to pay attention on corporation especially international corporation. The exciting thing is, the Law for Anti Money Laundering which attracted the attentions of the public widely has been valid since January 2007. It provides the lawful basis for our country to find and monitor the activities on money laundering, to protect the economic safety and society stability, and to participate the international corporation in this field. It is a big milestone in our policy development of anti money laundering.In this paper, based on definition of money laundering and necessity of setting up the rules on anti money laundering, we introduce the major methods in money laundering and the main contents on rules in anti money laundering. By looking at the development process on anti money laundering from foreign countries, which was from raw to mature and from simple to complicated, we give some suggestions on improving and completing the rules in our country on anti money laundering based on our current status and exiting problems.