More people being prosecuted for money laundering, SPP says

The number of people prosecuted for their suspected involvement in money laundering is on the rise, according to statistics issued by the Supreme People's Procuratorate on Thursday.

A total of 1,718 people were prosecuted from January to September for the crime, up 14.8 percent year-on-year, the statistics show.

Money laundering offenses are primarily associated with such crimes as drug trafficking, corruption and bribery, disrupting financial management order, financial fraud and smuggling, it said.

Furthermore, among all the suspects charged with offenses related to concealing or disguising criminal proceeds, and benefiting from such proceeds, 62,336 individuals were involved in money laundering, representing a significant year-on-year increase of 92.7 percent. This surge is closely linked to the prevalence of crimes such as telecom fraud and cross-border gambling, the SPP said.

China's Criminal Law specifically criminalizes money laundering for the following: drug trafficking; organized crime; terrorist activities; smuggling; corruption and bribery; disrupting financial management order; and financial fraud.

Money laundering occurring in other fields, including telecom fraud and cross-border gambling, may be designated as crimes of concealing or disguising criminal proceeds, or benefiting from the proceeds. Additionally, individuals who provide payment and settlement services for illegal activities, including underground money laundering, can be prosecuted for engaging in illegal business operations.

Prosecutors found that money launderers employ various tactics, including masking their crimes with real estate investments, purchases of precious metals such as gold, investments in securities and funds, and using underground banks for cross-border fund transfers.

Another common method involves renting other people's bank accounts and online payment accounts to transfer their ill-gotten gains. Criminals also purchase or lease bank cards to facilitate such transfers, the SPP said.

In recent years, with the application of modern information technology such as online payments and blockchain, various new money laundering methods have emerged. Some criminals have set up platforms to gather numerous individual accounts to receive and transfer criminal funds, while others use technology to facilitate the rapid, multi-layered transfer of funds, making it more challenging to detect and investigate these crimes.

SPP also highlighted that many people participate in money laundering due to financial difficulties. Investigations have revealed that some individuals, including students, those without stable employment, ordinary merchants, and elderly people in remote areas are tempted by the money they are offered to allow criminals to use their financial accounts for their money laundering schemes.