Research On Cross-border Cooperation Between Chinese Mainland And Hong Kong Against Money Laundering

Hong Kong Financial Services and the Treasury Bureau issued Hong Kong Money Laundering and Terrorist Financing Risk Assessment Report in April 2018,According to the conviction of Hong Kong money laundering cases in 2015,Chinese Mainland ranked second in the origin of upstream crimes.Hong Kong is adjacent to the Chinese Mainland,and also the economy is connected.The criminal activities such as corruption and fraud in Chinese Mainland are most likely to be laundered through Hong Kong.Cross-border money launderers will use Hong Kong's highly liberal trade and efficient financial and banking systems to commit crimes.Money laundering groups often use corporate bank accounts and money service operators as a way of money laundering.The Money Laundering Group uses Hong Kong's efficient and open business environment to clean up crimes benefits through the establishment of a shell company.In Hong Kong,it is common for a shell company controlled by a multinational group and to be used to clean the proceeds of crime outside Hong Kong.Through money laundering by corporate accounts in Hong Kong,Chinese Mainland criminal benefits are withdraw or flowing into the Chinese Mainland illegally.It results in directly affecting the financial stability of the Chinese Mainland,eroding China's national assets,causing great instability,disrupting financial markets in Hong Kong,and bringing financial risks and other issues.However,based on the situation of Chinese Mainland money laundering through the Hong Kong company accounts,the cooperation between Chinese Mainland and Hong Kong still needs to be deepened.The channels for information exchange and law enforcement still need to be unblocked,to avoid bringing criminals a chance.Based on cases,the author conducts research on anti-money laundering cooperation between Chinese Mainland and Hong Kong.It can provide a reference for China's anti-money laundering cross-regional cooperation work,enhance the overall effectiveness of the national anti-money laundering work,and curb downstream money laundering behavior.At the same time,further reduce the criminal behavior in the upstream.Firstly,the paper introduces the current situation of cross-border money laundering between Chinese Mainland and Hong Kong,and highlight the importance of supervision of Mainland China's money laundering through Hong Kong companies.Secondly,based on work experience and literature,the paper gathers the model and thecases,analyzes and summarizes and the main behavioral characteristics,and sorts out the statusquo,shortcomings and opportunities of cross-border cooperation in anti-money laundering between Mainland China and Hong Kong.Finally,drawing on the international anti-money laundering cooperation means and specific cases,think about the breakthrough of cross-border cooperation between Mainland China and Hong Kong in anti-money laundering,and working hard to greatly enhance the depth and breadth of anti-money laundering cooperation between the two places under the existing "one country,two systems" basic national policy.Through research,this paper finds that there are some identifiable features in the Hong Kong company,account transactions and related transactions in the case of money laundering.In the cross-border cooperation between Mainland China and Hong Kong on anti-money laundering,this paper believes that there are mainly problems,such as the abnormality of money-laundering information exchange channels,lack of legal assistance,loopholes and misplacement of policy linkages,limited capacity of Hong Kong's cooperation,and insufficient functions of accredited agencies.At the same time,there are opportunities,such as more emphasis,increased information disclosure,improved regulatory technology,and increased law enforcement.This paper proposes cross-border cooperation between Mainland China and Hong Kong on anti-money laundering in seven aspects——understanding the importance,improving the organizational structure,strengthening joint supervision,establishing policy linkages,conducting information exchange,conducting joint operations,and improving the disposal.The author hope that there will be some reference value and practical significance for the future cross-border cooperation work on anti-money laundering.In the follow-up study,the author will collect the case,understand the actual operation,track the legal adjustment dynamically,and further strengthen research for the prevention and deal of risk disposal of cross-border money laundering between Mainland China and Hong Kong.