三反監管(sānfǎn jiānguǎn): Supervision to curb money laundering, terror financing and tax evasion

The State Council, China's Cabinet, recently issued a document aimed at strengthening the supervision mechanism, in order to prevent money laundering, the financing of terrorism and tax evasion. The document makes it mandatory for the customs authorities to report unusual cross-border flows of cash to the anti-money laundering administrative department, public security organ as well as the national security departments, and improve the supervision system of abnormal flows of cross-border funds.

Since the Law of Anti-money Laundering was implemented, the construction of China's supervision over money laundering, terrorist financing and tax evasion has made great progress. Still there is enough room for improvement in areas such as coordination and cooperation mechanism, trans-department information sharing and international participation.

The document is aimed at establishing a sound mechanism to effectively prevent money laundering, terrorist financing and tax evasion. In particular, the document requires the setting up of a risk evaluation system to fight against money laundering and terrorist financing, and deal with such illegal activities.