Efficiency Of Economics Of The China Banking Anti-money Laundering

Economic globalization is developing faster and faster, so is money laundering, which is becoming a big threaten to the security and stabilization of international finance system. In order to minimizing this problem, International organizations and governments from different levels have put hard works on anti-money laundering, such as establish and improve laws and mechanisms against money laundering activities, but they are still far from solving this problem thoroughly. Correspondingly, China have established China Anti-Money Laundering Monitoring & Analysis Center (Camlmac) and adopted Law of the People's Republic of China on Anti-money Laundering . Meanwhile, China joined the Financial Action Task Force (FATF) . Our hard work have made big progress on Chinese Anti-money laundering, but there are still big challenges waiting for us, especially the problem of the efficiency of anti-money laundering.This paper first makes a survey of the characteristic of money laundering in China, and introduces its the situation in macro-system and micro mechanism. Then analyzes the present situation of anti-money laundering and current problem existing in Chinese banking system. followed with the reason that why the efficiency of anti-money laundering in Chinese banking system is low.Then, this paper employs game theory to analysis the behavior of both side base on the analysis of the cost-benefit of anti-money laundering in central bank and commercial bank, then comes a conclusion that anti-money laundering constraint mechanism is important for the improvement of the efficiency of anti-money laundering macro-system.After that, this paper constructs a mathematical model based on principal-agent incentive theory from the perspective of relationship between basic-level branch and headquarter of commercial bank. By the way of analyzing the every factor in equilibrium solution that will influence optimal level of anti-money laundering effort, this paper comes to the conclusion that by taking both proper incentive and constraint measures, headquarter of commercial bank can improve efficiency of anti-money laundering.Finally, this paper proposes feasible suggestions on how to construct high efficient anti-money laundering architecture from the perspective of both macro-system and micro mechanism.To analyze the efficiency of anti-money laundering, this paper employs different methods and theories, including cost-benefit, information economics, game theory, principal-agent theory, and combines of logic analysis with mathematical analysis. The result shows that in order to construct a high efficient anti-money laundering architecture, combined way must be used: constructing incentive and constrain mechanism, reducing cost of anti-money laundering and increasing money laundering cost.