In China, money laundering is a crime under Article 191 of the Criminal Law: the basic penalty is up to 5 years in prison plus a fine, and serious cases are punished with 5 to 10 years in prison plus a fine.
What conduct counts as money laundering?
Article 191 targets people who disguise the illegal origin of money made from crimes such as drug trafficking, smuggling, corruption, bribery or financial fraud. Typical acts include moving funds through bank accounts, buying property or assets in another person’s name, and sending money out of China through shell companies or informal channels. Since Amendment XI took effect in 2021, people who launder their own criminal proceeds (self-laundering) can also be prosecuted, not only those who help others.
Does the 2025 anti-money laundering law add anything?
China’s revised Anti-Money Laundering Law has been in force since 1 January 2025. It mainly strengthens the duties of banks and other designated institutions to identify customers, report suspicious transactions and keep records. It does not replace Article 191: criminal penalties for laundering still come from the Criminal Law, so an individual or a company can face administrative fines and criminal prosecution at the same time. If you are questioned about unusual fund flows, the amount, the source of the money and your role in the transfers will decide whether a criminal case is opened.
Related Reading
- Guides: China Criminal Law Guides
- What Is the Punishment for Fraud in China?
- What Is the Punishment for Corruption in China?
Frequently asked questions
Q: What conduct counts as money laundering?
A: Article 191 targets people who disguise the illegal origin of money made from crimes such as drug trafficking, smuggling, corruption, bribery or financial fraud. Typical acts include moving funds through bank accounts, buying property or assets in another person’s name, and sending money out of China through shell companies or informal channels.
Q: Does the 2025 anti-money laundering law add anything?
A: China’s revised Anti-Money Laundering Law has been in force since 1 January 2025. It mainly strengthens the duties of banks and other designated institutions to identify customers, report suspicious transactions and keep records. It does not replace Article 191: criminal penalties for laundering still come from the Criminal Law, so an individual or a company can face administrative fines and criminal prosecution at the same time.
Wang Guan | Co-founder, Beijing Haolue Law Firm | +86 17813108512