The updated regulations now cover the transfer and conversion of criminal proceeds through digital transactions
China's Supreme People’s Court and the Supreme People’s Procuratorate have introduced significant revisions to the country’s Anti-Money Laundering (AML) laws, marking the first major update since their implementation in 2007. Announced at a conference on August 19, the new interpretation explicitly includes transactions involving "virtual assets" as recognized methods of money laundering.
This amendment responds to the evolving financial landscape, where digital currencies have increasingly been used to obscure the origins of illicit funds. The updated regulations now cover the transfer and conversion of criminal proceeds through digital transactions, aiming to address concerns about money laundering techniques that leverage virtual assets. Under the revised law, penalties for money laundering offenses have been specified more clearly. Offenders face fines ranging from 10,000 to 200,000 Chinese yuan ($1,400 to $28,000), with potential jail terms of five to ten years for severe cases. The revisions also provide enhanced definitions of "serious circumstances," including refusal to cooperate with authorities or laundering amounts exceeding 5 million yuan ($700,000).
The Supreme People’s Procuratorate highlighted a dramatic rise in money laundering prosecutions, with 2,971 individuals charged in 2023—an increase of 20-fold compared to 2019. This surge reflects the broader effort to clamp down on financial crimes and adapt regulatory frameworks to new financial technologies.
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