China

The Anti-Money Laundering (AML) Law of the People's Republic of China is now fully operational based on an extensive revision that officially came into effect on January 1, 2025. Passed by the Standing Committee of the National People's Congress and regulated mainly by the People's Bank of China (PBOC), the new structure steers China towards a risk-based compliance system in line with international standards. In addition to covering areas beyond conventional banks, the law extends regulatory coverage to designated non-financial businesses and professions (DNFBPs) such as real estate, accounting, and law firms while enforcing tight regulations on virtual assets and cryptocurrencies. With joint enforcement powers with the Ministry of Public Security (MPS), the system asserts extraterritorial jurisdiction against financial threats from abroad, real-time asset freezes under “Special Preventive Measures,” and tough fines combined with a safe harbor clause for executives.