A senior official from the People’s Bank of China (PBOC) has called for heightened scrutiny of illegal activity conducted within China by offshore financial institutions.
Liu Honghua (刘宏华), the head of PBOC’s legal department, called for “researching and increasing provisions with extraterritorial applicability” in an essay published by China Finance (中国金融).
“[We] must establish jurisdictional effectiveness for financial law in relation to the implementation of illegal activity by offshore financial institutions,” Liu said.
Liu called for the establishment of more thorough regulatory mechanisms that apply to foreign shareholders, actual controllers and beneficiaries in financial institutions in China.
