Li Ruogu, the deputy governor of the People's Bank of China, Wednesday pledged that the central authority will step up its efforts to curb money laundering. 

Li said the central government plans to become a full member of the Financial Action Task Force on Money Laundering (FATF), a major inter-governmental organization, by the summer.

He made the remarks at a two-day international conference on combating money laundering in Hong Kong.

At present, China is only an observer at the FATF.

The country's top legislature, the National People's Congress, has already set up a taskforce to draft a new anti-money laundering law with tougher punishment as a prerequisite for FATF membership.

Li said the government has adopted a "proactive," "pragmatic" manner in fostering multilateral and bilateral cooperation in the fight against money laundering.

"We have already amended the criminal law and drafted new laws to give tougher punishment to money laundering and terrorist financing in China," he said. He expected the legislation to be completed by June.

The nation has carried out a list of measures to tackle money laundering, which includes cooperating with anti-money laundering organizations of other countries in investigations and intelligence exchanges.

Li said the establishment of a sound financial system is the most effective way to eradicate money laundering and is a crucial reform in the state-owned banking sector.

(China Daily February 17, 2005)