Is money laundering a true problem in China?

Area of Science:

• Financial Criminology
• Chinese Criminal Law
• Anti-Money Laundering

Background:

• Money laundering has been an offense under Chinese criminal law for over a decade.
• Despite its criminalization, no prosecutions for money laundering have occurred.
• Factors contributing to money laundering, including predicate offenses, corruption, underground banking, and shell companies, are prevalent.

Purpose of the Study:

• To examine the phenomenon of money laundering in China.
• To explore the reasons behind the lack of money laundering prosecutions.
• To identify essential elements for effective money laundering investigations.

Main Methods:

• Descriptive analysis of related phenomena.
• Inferential analysis of the money laundering problem.
• Exploration of reasons for non-prosecution.
• Identification of investigative factors.

Main Results:

• Money laundering is a significant issue in China, despite the absence of prosecutions.
• Corruption, underground banks, and shell companies facilitate money laundering activities.
• Specific factors hindering money laundering investigations were identified.

Conclusions:

• Money laundering poses a real challenge in China.
• The lack of prosecutions is attributed to specific systemic and investigative gaps.
• Addressing money laundering requires focusing on identified investigative necessities.