This morning, the State Council Legislative Affairs Office invited public comments on the proposed legislation namely “Management approach of freezing of assets in relate to terrorist activities” (hereinafter referred to as the “Management approach”). The proposed legislation shows the government’s effort to seek legal support for the ban of financing of terrorist activities.
The “Management approach” regulates that any unit or individual shall not provide, collect funds or other assets as well as offer any form of convenience or service to terrorist organizations or terrorist activities. Financial institutions, non-financial institutions shall immediately freeze any funds or other assets in relate to terrorist organizations or terrorists.
The “Management approach” points out that the unified list of terrorist organizations and terrorist activities shall be provided by the Ministry of Public Security.
Financial institutions, non-financial institutions should develop specific internal procedures (e.g. assets freezing) and control measures in handling the case involving terrorist activities as well as timely report the suspicious transactions in accordance with relevant provisions issued by the People’s Bank of China. In case any funds or other assets are found to be directly or indirectly owned or controlled by any terrorist organization or terrorists, these assets or funds shall be frozen immediately.