The Supreme People’s Court of China, the highest court of law in the country, and the Supreme People’s Procuratorate have issued a joint document that interprets the current money laundering law and defines several issues related to its application. In this interpretation, the two organizations list virtual asset transactions as one of the tools available for money laundering.
Highest Court of China Moves to List Virtual Asset Transactions as a Money-Laundering Tool
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Supreme People’s Court of China Lists Virtual Asset Transactions as a Way to Fulfill Money Laundering Processes
China is updating its understanding of virtual asset transactions to ease money laundering processes. On Monday, the Supreme People’s Court of China, China’s highest court, and the Supreme People’s Procuratorate presented a jointly prepared document that updates the application of punitive measures against money launderers and defines the circumstances that aggravate this kind of crime.
The document, titled “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases of Money Laundering,” complements existing definitions of money laundering crimes to make it easier for lower courts to identify and classify these in different criminal cases.
One of the new determinations of the document is the inclusion of virtual assets supporting money laundering activities. The fifth article lists several processes that can be considered money laundering activities. It states that “transferring or converting criminal proceeds and their proceeds through ‘virtual asset’ transactions or financial asset exchanges” might be considered an activity directed at “concealing or hiding the source and nature of the proceeds of the crime and the proceeds by other means.” This is specified in Item 5 of the first paragraph of Article 191 of the Criminal Law.
Since these two government institutions have started dealing directly with money laundering activities in the country, the number of convictions has risen significantly. According to Supreme People’s Court data, the number of people prosecuted for money laundering in 2023 rose 20 times compared to 2019. In addition, numbers from 2024 indicate that in the first half of the year, 1,391 individuals were prosecuted for money laundering, an increase of 28.4% compared to last year.
The document came into effect on August 20.
What do you think about virtual asset transactions mentioned as a tool for possible money laundering activities in China? Tell us in the comments section below.
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