The People's Bank of China (PBOC) published a policy document on July 24 reviewing anti-money laundering (AML) efforts under the 14th Five-Year Plan, vowing to intensify action against virtual currency laundering, cross-border fund transfers, and other financial crimes. According to the document, Chinese courts issued more than 2,000 judgments under Article 191 of the Criminal Law (the money laundering offense provision) in 2025, while enforcement cooperation with foreign jurisdictions has been strengthened.
Virtual Currency Laundering Remains Key Priority
The PBOC said authorities have been using a "dual investigation" approach since a joint campaign launched in 2022 by the central bank, the Ministry of Public Security, and nine other agencies, targeting both predicate crimes and related laundering networks. Criminal organizations increasingly rely on virtual currencies, underground banks, and new technologies to conceal and move illicit funds, making detection and transaction tracing more difficult, the report warned. Cross-border laundering networks exploit legal and regulatory differences across jurisdictions, using virtual currencies, nominee accounts, offsetting transactions and underground banks to disguise fund movements.
Authorities emphasized that professional money laundering groups, virtual currency laundering operations, and cross-border schemes remain enforcement priorities, with agencies coordinating on evidence collection, case handling, and legal application issues.
Revised AML Law Takes Effect in 2025, Oversight Expands Beyond Banks
China completed a major revision of its Anti-Money Laundering Law, which took effect in 2025, formally adopting a risk-based approach and requiring monitoring of money laundering threats from new technologies and emerging sectors. In 2024, the PBOC and the State Administration for Market Regulation established a national beneficial ownership reporting system to prevent shell companies from concealing illicit activity. Financial institutions are now required to identify and verify beneficial owners of customers, with a differentiated reporting mechanism to improve information quality.
AML supervision has been expanded beyond banks and financial institutions to cover lawyers, notaries, accountants, real estate businesses, precious metals and gemstone traders, and company registration agents. The PBOC said it worked with the Ministry of Justice, Ministry of Finance, Ministry of Housing and Urban-Rural Development, and other agencies to build oversight frameworks for these non-financial sectors.
Stablecoins Under Watch, International Cooperation to Deepen
In February 2026, the PBOC, the China Securities Regulatory Commission, and other agencies issued a notice that extended regulatory restrictions to offshore renminbi-pegged stablecoins and tokenized real-world assets. The framework reiterated that cryptocurrencies such as Bitcoin, Ether, and Tether do not have legal status as sovereign currency and cannot circulate within China. Crypto trading, token issuance, market-making services, and crypto-linked financial products are classified as illegal financial activities; civil legal acts involving crypto investments are invalid, with investors bearing any losses.
Wang Xin, director-general of the PBOC Research Bureau, said at the Lujiazui Forum on June 17 that policymakers are closely monitoring stablecoins and central bank digital currencies (CBDCs). He noted that stablecoins could assume a larger role in international payments in the future and called for continued attention to regulatory coordination and international cooperation. Earlier in May, Liu Guixiang, a member of the judicial committee of China's Supreme People's Court, said courts would further research adjudication standards for disputes involving virtual currencies and cross-border financial activities.
The PBOC said future AML efforts will include stronger international intelligence sharing, investigations, asset recovery, and enforcement coordination, especially in cases involving cross-border criminal activity and illicit fund transfers.