China Eyes Major Updates to Anti-Money Laundering Law, with Focus on Data Privacy

China is considering significant revisions to its Anti-Money Laundering (AML) laws, with potential changes that could reshape how financial institutions manage data privacy. The Standing Committee of the National People’s Congress is set to review a draft amendment to China’s AML Law next week, according to Huang Haihua, spokesperson for the Legislative Affairs Commission.

China’s AML law, originally enacted in 2007, is now poised for an overhaul that could bring it into alignment with the country’s evolving financial landscape and data protection requirements. As Huang explained, the proposed revisions will clarify specific scenarios in which AML institutions and their employees are authorized to handle and collect data.

Additionally, the amendment will outline conditions under which financial institutions may implement AML risk management practices. Regulations governing data protection will set the standards for any information-sharing activities, as reported by Xinhua News Agency.

Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China, emphasized the importance of finding equilibrium in the new AML framework. “AML requires information sharing, but it is also necessary to prevent excessive collection of customer information,” he told the *Global Times*, underlining that the rules aim to balance privacy protection with the practical needs of business operations.

This legislative update follows an August announcement by the Chinese government, which confirmed that the revised AML measures will ensure “virtual asset” transactions are covered under AML regulations. The latest developments indicate China’s commitment to enhancing financial transparency while adapting to the expanding digital economy.

By fLEXI tEAM