US treasury to focus on TBML in money laundering study and strategy for China

The US treasury has been ordered to carry out a study on money laundering by China that will “rely substantially” on information obtained through the trade-based money laundering (TBML) analyses behind the US Government Accountability Office’s (GAO’s) detailed report that examines US agencies’ efforts to combat TBML (Trade-based Financial Crime, 3 February 2020).

The treasury has also been ordered to and propose an anti-money laundering strategy for China, the only country singled out by Washington in this respect.


The study will look at the extent and effect of illicit finance risk relating to Chinese  firms and financial institutions.

The treasury is also charged with examining risks allowed, directly or indirectly, by the Chinese government, including those that the US says may be enabled by weak regulatory or administrative controls of that government.

International concerns

US authorities are concerned with the ways in which the increasing amount of global trade and investment by the Chinese government and firms exposes the international financial system to increased risk relating to illicit finance.

Once the study is completed the treasury is to determine a strategy to counter Chinese money laundering in consultation with other federal agencies.

Classified strategy

The findings of the study, expected later this year, will be submitted to Congress and will appear in the public domain.

The strategy to counter Chinese money laundering will remain classified and will not be made public.

Categories: Trade Based Financial crimes News

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