October 14, 2020

People’s Bank of China to Crack Down on Cross-Border Gambling Capital Chains

The Chinese government convenes all relevant departments to take action on the most important political project. And it is the task of the People’s Bank of China (PBOC) to crack down on cross-border gambling capital chains. Fang Yifei, deputy governor of the bank, called for enhancement on the measures to tackle money laundering (AML).

The Bank‘s latest meeting included members from the Ministry of Public Security, the General Customs Administration, the China Banking and Insurance Regulatory Commission, the Foreign Exchange State Government, the China Payment and Clearing Association, the China UnionPay Co Ltd Bank Card Service Provider, and the NetsUnion Clearing Corp.

Preventing financial crimes is the main task for the Bank of China in this political project.

The improved precautions include to add verification and tracking on the flows of money in the banking system. PBOC also has to submit the reports for large amount and suspicious transaction happened recently as soon as possible. Besides, the PBOC should pay more attention to monitor and analyse money laundering activities. And an ID verification process must be applied when cash withdrawal happens.

The target of this project might be the overseas gambling entities in South East Asia.

JP Morgan Chase analysts DS Kim, Derek Choi and Jeremy An pointed out that Macau is not necessarily the target.

They believe that the cross-border gambling generally refers to the illegal gambling businesses, especially those in the Philippines and Cambodia operated by agents.

They also realised the Chinese government has recently detected a series of illegal online gambling across multiple Chinese provinces. And it could be related to the project this time.

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