Is Money Laundering a Crime in China? Penalties and Rules

In short: yes. Money laundering is a crime under Article 191 of China’s Criminal Law. It covers seven categories of predicate offences, carries up to five years’ imprisonment for the basic offence and five to ten years where the circumstances are serious, and since 1 March 2021 “self-laundering” — laundering the proceeds of your own crime — is also punishable.

What counts as money laundering: Article 191

Article 191 makes it an offence, with knowledge, to conceal or disguise the source and nature of proceeds of crime by, among other things: providing fund accounts; assisting in converting property into cash or financial instruments; assisting in transferring funds by transfer or other payment methods; assisting in remitting funds abroad; or otherwise disguising the source and nature of the proceeds. The provision applies to proceeds of seven categories of predicate offences: drug offences, offences by organised criminal syndicates, terrorist activity, smuggling, embezzlement and bribery, offences against financial management order, and financial fraud.

No fixed amount threshold

Unlike many economic offences, Article 191 does not set a “relatively large amount” as an element. The offence turns on knowledge plus the act of concealing or transferring the proceeds of one of the seven predicate offences. That is why even modest transactions can be caught if the knowledge and the predicate offence are established.

The penalties

The basic offence is punishable by up to five years’ imprisonment or criminal detention, with a fine. Where the circumstances are serious, the penalty is five to ten years’ imprisonment, with a fine. Where a unit commits the offence, the unit is fined and the persons directly in charge and other directly responsible personnel are punished under the same provision.

What “serious circumstances” means: the 2024 interpretation

The Supreme People’s Court’s 2024 interpretation (Fa Shi [2024] No. 10, effective 20 August 2024) provides that “serious circumstances” generally means laundered funds of RMB 5 million or more together with at least one aggravating factor, such as repeated money-laundering activity. The amount alone does not automatically trigger the heavier sentence range; the aggravating circumstance must also be present.

Self-laundering since 2021

Before the Eleventh Amendment to the Criminal Law, which took effect on 1 March 2021, a person who laundered the proceeds of his own offence was generally not treated as committing money laundering. That changed: the amendment expressly brought self-laundering within Article 191, so a person convicted of a predicate offence can also face a separate money-laundering charge for dealing with his own proceeds.

FAQ

Q：Is money laundering a crime in China?

A：Yes, under Article 191 of the Criminal Law. It carries up to five years’ imprisonment for the basic offence, or five to ten years where the circumstances are serious.

Q：What is the threshold for money laundering in China?

A：Article 191 sets no fixed amount threshold. The offence turns on knowingly helping to conceal or transfer the proceeds of one of seven predicate offence categories.

Q：What does “serious circumstances” mean?

A：Under the 2024 interpretation (Fa Shi [2024] No. 10), generally RMB 5 million or more in laundered funds combined with at least one aggravating factor, such as repeated conduct.

Q：Can you launder your own money?

A：Yes. Since the Eleventh Amendment took effect on 1 March 2021, self-laundering is punishable under Article 191.

Q：Which offences count as predicate offences?

A：Drug offences, organised crime, terrorist activity, smuggling, embezzlement and bribery, offences against financial management order, and financial fraud.