China's biggest banks are enhancing their anti money-laundering (AML) and know-your-customer (KYC) controls following regulatory probes throughout the US and Europe threatening their overseas expansion. Compliance budgets are set to be raised by 20% or more across China's big state-owned commercial banks and financial service companies. The move comes as regulators in China have been investigating whether some of these institutions may have violated anti-money laundering laws through a series of transactions involving offshore shell companies that were used for illicit purposes.
China's biggest banks are enhancing their anti money-laundering (AML) and know-your-customer (KYC) controls following regulatory probes throughout the US and Europe threatening their overseas expansion. Compliance budgets are set to be raised by 20% or more across China's big state-owned commercial banks and financial service companies. BoC, CBB and ICBC are leading the effort through thorough revamps of transaction controls, enhanced oversight and improved AML systems compliant with overseas regulations.