Contents
A Candid Exchange in Washington
US Treasury Secretary Janet Yellen and China’s deputy central bank governor, Xuan Chengneng, met in Washington recently. The purpose of this meeting was to discuss coordination on financial market monitoring and methods to combat money laundering. These discussions were described as professional, pragmatic, candid, and constructive by the Chinese side.
Interwoven Financial Dialogues
The dialogue was co-led by Brent Neiman, Yellen’s assistant secretary for international affairs. During the negotiations, financial policy topics of mutual interest, including anti-money laundering measures, were key discussion points. Issues related to the macroeconomic and financial environment, financial stability, and regulation were also on the table.
Technical Exercises and Macroeconomic Concerns
In Washington, both sides engaged in technical exercises on international macroeconomic data reporting. They emphasised communication enhancement in banking stress situations. Furthermore, they addressed climate and insurance risk matters. The US Treasury noted that both parties received readouts on these technical exercises.
Financial Initiatives on the Chinese Front
In parallel, the People’s Bank of China shared insights into its recent string of monetary policy measures. Among these was an unprecedented 500 billion yuan swap operation, instituted on October 21st. This initiative aims to instil liquidity and bolster investor confidence in the Chinese stock market. Sources like Reuters highlight the significance of such measures in stabilising financial markets.
Anti-Money Laundering Measures and Cryptocurrency
While the statement was sparse on details, it was noted that the Joint Treasury-People’s Bank of China Cooperation and Exchange on Anti-Money Laundering convened its third meeting. They addressed concerns rooted in emerging technologies, such as cryptocurrency, viewed as potential money-laundering conduits. China’s legislative body recently conducted a review of draft revisions to its Anti-Money Laundering Law, which seeks to monitor new risks influenced by technological advancements.
Chinese Delegation’s Concerns
While the specifics remain undisclosed, the Chinese delegation expressed concerns to their US counterparts on various issues. Meanwhile, China’s Supreme People’s Court and Supreme People’s Procuratorate revised laws in August. These revisions encompass cryptocurrencies and other digital assets as potential money laundering channels, aligning with efforts from global entities like FATF who work on combating financial crime.
Conclusion and Further Reading
This meeting underscores the intricate web of international financial relations and reflects the persistent need for dialogue and cooperation. For more insight into this complex topic, explore additional resources from the South China Morning Post. Their coverage provides in-depth analysis of the financial intricacies of Asia and beyond.
