“Chinese banks have much lower compliance standards than foreign banks,” the regulator said. 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. 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.