The Research Of Anti-money Laundering Supervision In Financial Industry For Local Central Banks

Since the opening and reform, China has achieved a high economic growth. Financial, as one of fast developed industry in national economy, is an important acceleration for China’s growth. However, with continuous innovations in financial businesses and functions, such as banking, securities and insurance, as well as the deepening of foreign exchange, the financial institutions are facing more and more risks in the economic reform. In recent years, some lawbreakers are taking advantage of the financial instruments to do the crimes, like laundering, which can help conceal more criminal behaviors, for example, graft and bribery, embezzlement, market manipulation, insider trading, tax evasion and so on. Money laundering can not only prevent the lawbreakers from punishing, but also foster the new criminals, twist the economic and social orders, damage the financial integrity and corrode public morality.As a state council administrative department, People’s Bank of China (PBC) is responsible for the anti-money laundering management in nationwide. In Anti-Money Laundering law, the local central banks, working as the agencies of the central bank, are the regulators of anti-money laundering work in different regions. In these years, the local central banks have realized some achievement in this field, but with the limit of system, regime and supervisory conditions, there are still some problems need to be solved. This paper contains five parts:firstly, it introduces the significance and background of this topic, and states the literature review; secondly, it explains the laundering’s meaning, features, stages, forms and presents some anti-money laundering supervision methods, including the " public interest"," financial fragility theory"," the imperfect law" and" the use of game theory analysis"; thirdly, it introduces and compares the supervision modes of anti-money laundering in US, UK, Australia and Swiss; fourthly, introduces the local central banks’ resent situation of system and organization development in supervision, it expounds the relations between People’s Bank of China (including the local central banks) and anti-money laundering, it analyzes the existing problems in the local central banks’anti-money laundering supervision; finally, it proposes the suggestions for the local central banks’ nti-money laundering supervision.On the basis of financial supervision methods and the work reality, as well as the western countries’ xperience, this paper profoundly analyzes the anti-money laundering work in local central banks and tries to provide some practical advice so as to promote the stability of regional economy. Working in the local central bank has given me some basic knowledge of anti-money laundering, but because of my learning limit, this paper pays more attention to the practice analysis, so the width and depth of this research are far from enough. Hereby, I sincerely hope that the experts can be kind to give me some corrections and suggestions and I would try my best to improve in future study and work.