China's Anti-Money Laundering Law, passed by the country's top legislature 10 years ago, cannot solve some new problems effectively, said Yu Guangyuan, vice-president of the China Association for Fiscal and Tax Law. [Photo/IC]

Legislation to combat money laundering should be updated and improved quickly in view of increased cybercrimes, and to protect national security, judicial and financial experts said on Sunday.

Money laundering methods have become more diversified and professional, according to one expert.

This means that China's Anti-Money Laundering Law, passed by the country's top legislature 10 years ago, cannot solve some new problems effectively, said Yu Guangyuan, vice-president of the China Association for Fiscal and Tax Law.

"Some people are now using computers, online finance and mobile payments for money laundering, as well as relying on some professional outlets, including auctions and pawn shops," Yu said at a forum on the anti-money laundering legislation.

Some professionals, including attorneys, accountants and auctioneers, have taken part in money laundering, "which means it has been much harder to figure out ways to hide illicit profits," said Yu, a financial law professor at Peking University.

Nearly 40 percent of money laundering is carried out through mobile payments and online banking, according to a statement by Yu, who added that the number of such platforms is rising.

He said diversified channels to launder money have brought new problems that the current law, which took effect on Jan 1, 2007, does not include and cover.

He called for lawmakers to update the law as quickly as possible.

Yu suggested that the legislature expand supervision to include nonfinancial institutions－such as customs authorities, antique markets and real estate agencies－to prevent them becoming money laundering platforms.

"It is also necessary to learn technical skills to analyze and evaluate suspicious transactions from foreign countries. Judicial cooperation on investigations, freezing accounts and seizing assets should also be improved with these countries as well," he said.

Li Yunfei, a legal researcher at Southwest University of Political Science and Law, said that promoting the anti-money laundering law will help to ensure national security and combat terrorism.

"There is still some room in which the law can be improved. For example, it should include ways to face financial problems brought by money laundering in cyberspace, while the amount of money laundering should be specified more clearly," Li said.

Cao Zuoyi, from the Bank of China's Anti-Money Laundering Bureau, said it would increase supervision at branches and help public security departments with money laundering clues.