Letter to Solicit Opinions on the Administrative Measures for Anti-Money Laundering Performance of Accounting Firms (Draft for Comment)
Cai Ban Hui [2025] No. 18
May 16, 2025
To Financial Departments (Bureaus) of all provinces, autonomous regions, and municipalities directly under the Central government; Financial Bureau of Xinjiang Production and Construction Corps, Financial Bureau of Shenzhen Municipality; local regulatory bureaus of the Ministry of Finance; all accounting firms and relevant entities,
To strengthen and regulate the anti-money laundering performance of accounting firms, the Ministry of Finance and the People's Bank of China have jointly researched and drafted the Administrative Measures for Anti-Money Laundering Performance of Accounting Firms (Draft for Comment). We hereby issue this document to you, and request that you organize the solicitation of opinions and submit your feedback to the Accounting Department of the Ministry of Finance by June 17, 2025. Please include the name and contact information of the designated liaison in your feedback materials.
Contact Person: Accounting Department of the Ministry of Finance
Address: No. 3 Sanlihe Nansanxiang, Xicheng District, Beijing 100820
Telephone: 010-68554745
Email: [email protected]
Attachment 1: Administrative Measures for Anti-Money Laundering Performance of Accounting Firms (Draft for Comment)
Chapter I General Provisions
Article 1 These Measures are formulated in accordance with the Anti-Money Laundering Law of the People's Republic of China (the “AML Law”) and other regulations to strengthen and regulate the lawful fulfillment of anti-money laundering (“AML”) obligations by accounting firms.
Article 2 Accounting firms legally established within the territory of the People's Republic of China that provide services involving any matters specified in the second paragraph of Article 64 of the AML Law shall fulfill their AML obligations in accordance with the AML Law and these Measures, and shall be subject to supervision and regulation.
Article 3 The financial authority under the State Council shall perform supervisory and regulatory duties regarding the AML performance of accounting firms, and shall, in conjunction with the AML administrative authority under the State Council, study and address major issues concerning the AML performance of accounting firms. Provincial-level financial authorities shall perform supervisory and regulatory duties regarding AML performance of accounting firms within their respective administrative regions. Institutes of certified public accountants (CPA) shall assume self-regulatory duties for the AML performance of accounting firms in accordance with the law.
Chapter II Anti-Money Laundering Obligations
Article 4 Accounting firms shall establish a sound internal AML control system that are appropriate to the firm’s risk status, covering money laundering risk assessment, customer due diligence (CDD), suspicious transaction reporting, special AML precautions, retention of customer identity information and transaction records, confidentiality of AML information, awareness and training, as well as audit and inspection, among other content.
Accounting firms may, based on the actual circumstances of the firm, designate dedicated personnel to be responsible for the firm's AML performance.
Article 5 Accounting firms shall take reasonable measures to regularly identify and assess the money laundering risks the firm faces, and, based on the risk assessment results, formulate and implement appropriate risk management systems, measures and procedures to control money laundering risks.
Where an accounting firm intends to adopt a new technology or launch a new type of business involving any matters specified in Article 2 of these Measures, it shall promptly conduct a risk assessment and take appropriate measures to mitigate money laundering risks.
Article 6 Under any of the following circumstances, accounting firms shall conduct CDD based on the customer characteristics, the nature of the transaction activity, and the associated money laundering risk status:
(1) When establishing a business relationship with a customer involving any matters specified in Article 2 of these Measures;
(2) When there are reasonable grounds to suspect that a customer or their transaction is involved in money laundering activities; or
(3) When there are doubts about the authenticity, validity, or completeness of previously obtained customer identity information.
Accounting firms shall complete CDD prior to the provision of services. Provided risks are controllable, CDD may be completed within a reasonable period before the termination of the business relationship.
Article 7 Where a customer obstructs, hinders, or refuses to cooperate with due diligence, or if there are other objective circumstances that render the completion of due diligence impossible, accounting firms may refuse to transact with or terminate any existing business relationship with the customer.
Article 8 When conducting CDD, accounting firms may identify and verify the identity of customers and beneficial owners by inspecting the identity documents of individual customers, and the business licenses, permits, and beneficial owner information of corporate or non-corporate organizational customers, retain copies or photocopies of these materials, and take reasonable measures to understand the purpose and nature of the business matter and other relevant information. Where a customer is represented by an agent, accounting firms may also verify the agency relationship and identify and verify the agent’s identity.
Article 9 Accounting firms shall conduct ongoing monitoring and assessment of the overall status, business conditions, and money laundering risks of customers with whom they have ongoing business relationships, and shall perform ongoing CDD accordingly.
Article 10 Accounting firms shall, based on publicly available information and comprehensively taking into account factors such as customer characteristics, transaction purpose, transaction nature, and the source and use of funds or assets, implement enhanced CDD measures commensurate with the money laundering risks associated with the following customers and their transactions:
(1) Customers from high-risk countries or regions;
(2) Customers suspected of money laundering or related crimes as investigated or publicly identified by national judicial, law enforcement, or supervisory authorities;
(3) Customers who are foreign political figures, executives of international organizations, or family members or close associates of such individuals; and
(4) Customers or their transactions that present other higher money laundering risks.
Article 11 Accounting firms shall take one or more of the following enhanced due diligence measures based on the risk situation:
(1) Adopt reasonable measures to obtain information on the business relationship, transaction purpose and nature, and source and use of funds or assets, among other information, and may require the customer to provide supporting documents if necessary;
(2) Strengthen monitoring and analysis of the customer’s business conditions;
(3) Increase the frequency of reviewing and updating the customer’s information; and
(4) Obtain approval from the firm’s head or executive before establishing or maintaining a business relationship, or conducting a transaction with the customer.
If, after implementing enhanced CDD measures, a customer is still considered to pose a high money laundering risk, accounting firms shall refuse to transact with or terminate any existing business relationship with the customer.
Article 12 Where a customer is suspected of involvement in money laundering and conducting CDD may lead to the disclosure of such suspicion, accounting firms may choose to discontinue the due diligence process but must submit a suspicious transaction report.
Article 13 Where, based on customer characteristics, transaction purpose, and transaction nature, an accounting firm determines, through risk assessment or with sufficient grounds, that a customer poses a low money laundering risk, it shall apply simplified due diligence measures commensurate with the associated money laundering risk. When applying simplified due diligence, the accounting firm shall, at a minimum, identify and verify the identities of the customer and any beneficial owner, and register the relevant information.
For customers, business relationships, or transactions subject to simplified due diligence, accounting firms shall conduct periodic reviews of their risk status and adjust transactions or services in accordance with the identified risk level.
Article 14 Where a customer, business relationship, or transaction is suspected of involvement in money laundering or any high-risk circumstances, accounting firms shall not apply simplified due diligence measures.
Article 15 Where an accounting firm engages a third party to conduct CDD, it shall clearly define the rights and obligations of each party. The ultimate responsibility for the CDD conducted by the third party shall remain with the accounting firm.
Article 16 Where an accounting firm discovers or has reasonable grounds to suspect that a customer, the customer's funds or other assets, or the customer's transaction or attempted transaction is involved in money laundering or related illegal or criminal activities, it shall promptly submit a suspicious transaction report to the China Anti-Money Laundering Monitoring and Analysis Center through the Chinese Institute of Certified Public Accountants.
Article 17 Accounting firms shall adopt special AML precautions toward entities specified in Article 40 of the AML Law. Special AML precautions of accounting firms include the immediate cessation of services to listed entities, as well as to their agents, organizations and individuals acting under their instruction, and organizations directly or indirectly controlled by them, and not providing any form of facilitation for the transfer of such entities’ funds or assets.
Article 18 Accounting firms shall establish a system for the retention of customer identity information and transaction records in connection with the matters specified in Article 2 of these Measures.
Article 19 The customer identity information and transaction records that accounting firms shall retain include customer identity information, materials obtained during CDD, business contracts, business vouchers, receipts, business correspondence, and other materials.
Article 20 Customer identity information and transaction records shall be retained for at least ten years after the end of the corresponding business relationship or transaction.
Article 21 Accounting firms shall continuously carry out AML awareness and training activities for their personnel, and cooperate with AML campaigns.
Chapter III Supervision and Regulation
Article 22 The financial authority under the State Council shall oversee and regulate the anti-money laundering performance of accounting firms nationwide and address AML supervisory and regulatory recommendations proposed by the AML administrative authority under the State Council and its local offices. Provincial and higher-level financial authorities shall supervise and inspect accounting firms’ fulfillment of their AML obligations in accordance with the law. The AML administrative authority under the State Council and its local offices shall assist provincial and higher-level financial authorities in relevant supervision and inspections in accordance with the law.
Provincial-level financial authorities and provincial-level CPA institutes shall, in accordance with relevant regulations, conduct AML reviews of applicants seeking to establish an accounting firm or register as a certified public accountant. Applicants who have been subject to criminal penalties shall be handled in accordance with the Law of the People's Republic of China on Certified Public Accountants and other regulations.
Article 23 CPA institutes at all levels shall, under the guidance of financial authorities and AML administrative authorities, conduct self-regulation of accounting firms’ fulfillment of their AML obligations, including:
(1) The Chinese Institute of Certified Public Accountants (CICPA) shall formulate and supervise the implementation of industry-related AML guidelines;
(2) The CICPA shall refine AML requirements within professional codes of conduct and professional ethics;
(3) The CICPA shall identify and assess money laundering risks within the industry and promptly issue risk alerts;
(4) Guiding accounting firms in complying with AML laws and regulations and related professional requirements, and enhancing compliance awareness and risk control capabilities within the industry;
(4) In accordance with Disciplinary Measures for Violations of Professional Conduct by Members of the Chinese Institute of Certified Public Accountants, taking self-regulatory disciplinary actions against accounting firms that violate these Measures or AML requirements in related professional codes of conduct or professional ethics, and promptly reporting such cases to provincial or higher-level financial authorities.
Article 24 Customer identity information and transaction information obtained during the lawful fulfillment of AML duties or obligations, AML investigation information, and other AML information shall be kept confidential; it must not be provided to any entity or individual except as required by law.
Chapter IV Legal Liability
Article 25 Accounting firms that violate the provisions of these Measures shall be subject to penalties in accordance with Article 58 of the AML Law; if a crime is constituted, criminal liability shall be pursued in accordance with the law.
Article 26 Staff engaged in AML work at relevant agencies, provincial-level or higher financial authorities, the AML administrative authority under the State Council and its local offices, and CPA institutes, who violate the provisions of these Measures, shall be held legally liable in accordance with the law.
Chapter V Supplementary Provisions
Article 27 The term "high-risk county or region" as used in these Measures refers to any country or region that the Financial Action Task Force (FATF) explicitly requires action against, or that the People's Bank of China has listed as a high money laundering risk country or region in accordance with the AML Law.
The term "business" as used in these Measures specifically refers to the types of business set forth in Article 2.
Article 28 The relevant provisions of these Measures shall apply mutatis mutandis to the prevention of terrorism financing activities by accounting firms. Where laws, regulations, or rules have other provisions, such provisions shall apply.
Article 29 These Measures shall be interpreted by the financial authority under the State Council, in conjunction with the AML administrative authority under the State Council.
Article 30 These Measures shall come into effect on [DATE]. In the event of any inconsistency between these Measure and previous relevant provisions, these Measures shall prevail.
