Zhao Leji, chairman of the National People's Congress (NPC) Standing Committee, presides over the first plenary meeting of the 12th session of the 14th NPC Standing Committee at the Great Hall of the People in Beijing, capital of China, November 4, 2024. Photo: Xinhua

A draft revision to the Anti-Money Laundering Law was submitted for a third deliberation at a session of China's top legislature on Monday, according to the Xinhua News Agency.

The Standing Committee of the 14th National People's Congress started its 12th session on Monday in Beijing and lawmakers reviewed a draft preschool education law, a draft revision to the Law on Protection of Cultural Relics, a draft revision to the Mineral Resources Law, a draft energy law, and a draft revision to the Anti-Money Laundering Law.

The draft revision further stipulates the conditions under which financial institutions can impose anti-money laundering risk management measures, and it added articles requiring that the sharing of anti-money laundering information must comply with relevant legal regulations on information protection, according to Xinhua.

Additional provisions in the draft revision stipulate that when anti-money laundering risk management measures involve customers' basic and necessary financial services, financial institutions should handle them promptly.

By making revisions to the existing law, the country will provide a better legal framework to protect the normal flows of capital across borders while stemming illegal cross-border financial activities, said Cong Yi, a professor at the Tianjin School of Administration.

Cong said that by further articulating related articles, lawmakers will steer financial institutions away from a situation in which they take a one-size-fits-all approach in imposing restrictions.

Constantly making patches to the existing law also helps financial institutions observe the law with more efficacy, the expert said, noting that the effectiveness of anti-money laundering operations requires unified efforts by financial institutions.

Previously, the Xinhua News Agency reported that the draft revision draft stipulates that institutions providing anti-money laundering services and their employees should properly handle the data and information obtained during their services in accordance with the law, as the country steps up the protection of personal privacy in anti-money laundering work, citing Huang Haihua, spokesperson for the Legislative Affairs Commission of the National People's Congress Standing Committee.

The draft revision highlights that anti-money laundering work should ensure the smooth operation of regular financial services and capital flows, and safeguard the legitimate rights and interests of relevant institutions and individuals, according to Huang.

"Anti-money laundering requires information sharing, but it is also necessary to prevent excessive collection of customer information, and a balance between maintaining financial public order and protecting individual privacy is required," Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China, told the Global Times. 

The Anti-Money Laundering Law came into effect in 2007.

Lawmakers on Monday also reviewed a State Council bill on raising ceilings on local government debts to replace existing hidden debts, reports on handling proposals submitted by lawmakers, a deputy qualification report, and personnel-related bills, among others.