Home⇛Asia Pacific Journal of Management and Sustainable Development⇛vol. 13 no. 1 Part 5 (2025)

Causes, Preventive Practices, and Control Measures on Money Laundering Cases in China

Xu Dongsong

Discipline: Law

 

Abstract:

This study investigated the causes, preventive practices, and control measures of money laundering cases in China. Using a descriptive design, data were collected from 425 financial experts, legal professionals, and government officials through validated survey instruments. Majority of the respondents were between 26-35 years old, females, completed bachelor’s degrees and with an income of below 3,000 yuan. Money laundering cases were mostly attributed by organizational factors. International cooperation was regarded as the primary or leading preventive measure for money- laundering while judicial system was regarded the lowest among the measures. Internal measures are still perceived to be the best control measures on money-laundering. Highly significant difference in responses on causes of money laundering was noted on educational attainment and monthly income; there was a significant variation on responses on preventive measures of money laundering in terms of internal aspect; educational income and monthly income showed highly significant difference of responses. Causes and preventive measures on money laundering are highly significantly related; causes and control measures have highly significant relationship. Findings revealed that inadequate regulation, technological loopholes, and the increasing use of virtual assets are major drivers of money laundering. Effective AML practices, such as customer due diligence, regulatory advancements, and enhanced international cooperation, significantly mitigate these risks. However, challenges persist due to insufficient enforcement and limited public awareness. A proposed comprehensive anti-money laundering program was developed based on the results.



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