After five years of deliberation and revisions, China’s newly amended Anti-Money Laundering (AML) Law has finally been enacted and came into effect on January 1, 2025 — a long-anticipated milestone. While the law aligns with Financial Action Task Force (FATF) standards, the revision reflects China’s focused effort to strengthen its domestic AML framework in line with international benchmarks. This law, though long overdue, marks a significant step in China’s ongoing battle against money laundering and financial crime. While the law’s provisions are robust, effective implementation under the risk-based approach will require strategic planning and investment by institutions. With regulators and institutions under immense pressure to align with global standards, this legislation lays the foundation for a more transparent and resilient financial system.
