Analysis Of American Financial Institutions Anti-money Laundering Supervision

Money laundering refers to illegal financial transaction schemes that attempt toconceal the source, identity and destination of illegally-obtained money. Moneylaundering is detrimental to the human society, for this crime seriously distorts theeconomic and financial orders and undermines the sound operation of financialinstitutions. Until now, international bodies and state government, including china,continue to undertake efforts in deterring, preventing and apprehending perpetratorsof this crime due to great effect of what money laundering is. As focal point of socialcapital circulation, financial institutions which are used by more and morelaundering activities have become the focus field of anti-money launderingsupervision. Research on the anti-money laundering supervision of financialinstitutions is of profound significance to the development of anti-money regulationand the prevention of crime. Therefore, based on the analysis of anti-moneylaundering supervision of financial institutions in the United States, this article aimsto provide a preliminary analysis of anti-money laundering regulatory problemsemerging in China’s financial institutions and to put forwards some constructivesuggestions to strengthen the supervision in our country. The article could be dividedinto four parts.The first chapter is mainly based on the conception of the money launderingand the anti-money laundering. We first introduce the money launderingdevelopment from the single, disordered model to the organized, professional crimeand overview different definitions of money laundering at the point of the diversesubjects to abstract the nature. Based on the introduction of the main methods in financial institutions, such as the banking, insurance, security industry and the trustindustry, etc., we infer that the financial field is the principle channel of moneylaundering. Furthermore, we summarize the definition of anti-laundering andanti-money laundering supervision. On the basis of it, the historical evolution ofinternational anti-money laundering supervision in financial industry is described.The second chapter explicitly elaborates the practical needs and theoreticalbasis of anti-money laundering supervision in financial institutions. From the pointof threaten to the financial institutions brought by the money laundering, weemphasize the practical significance of supervision. Secondly, on a firm footing ofthe public interest theory, the financial fragility theory and the incomplete law theory,the paper analyzes the necessity of financial institutions anti-money launderingsupervision, which constitutes the theoretical foundation of supervision in financialsystem.The third part which is the emphasis of this article mainly analyzes theguarantee system, operation mechanism and the evaluation of financial anti-moneylaundering supervision in the United States. As the money laundering disaster area,America is the pioneer nation to set up anti-money laundering supervision infinancial field and to formulate a series of complete laws and regulations. Americahas achieved remarkable results, for it obtained a positive and effective explorationin the practice of supervision. The first part introduces the relatively perfect legalsystem in the United States, which provides strong system foundation for theeffective operation of supervision. Based on that, we elaborate the anti-moneylaundering operation mechanism of America, including the construction of multipleregulatory, cooperation supervision system and the intensified supervision andpunishment. At last, we evaluate the merits and defects of anti-money launderingsupervision existing in the United States.In the fourth part, on the analysis of the status and problems of anti-moneylaundering supervision in china’s financial institutions, the paper puts forward some suggestions to enhance the supervision in our country. Although china has madeconsiderable achievements in anti-money laundering case investigation andinternational cooperation of financial institutions, the effective supervisionmechanism has not yet been established. There are still major problems in theintegrity and coordination of financial supervision. What’s more, there are lack ofinformation collection and analysis system. In this regard, with the combination ofthe America experience and the practical conditions in china, the article puts forwardconstructive suggestions to improve our supervision. First, the anti-moneylaundering supervision system should be intensified. Second, it is necessary toestablish the anti-money laundering supervision mode based on the risk. Meanwhile,we should set up a stable and effective information generating channel. Moreover,the reporting mode of suspicious transactions should to be optimized and theincentive and constraint mechanism of anti-money laundering should also to beimproved.