VZCZCXRO3793
OO RUEHCN RUEHGH RUEHVC
DE RUEHBJ #3024 2181334
ZNR UUUUU ZZH
O 051334Z AUG 08
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8991
RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS BEIJING 003024 
 
SIPDIS 
SENSITIVE 
 
STATE FOR EAP/CM AND EEB/OMA 
TREASURY FOR OASIA/DOHNER 
USDOC FOR 4420 
STATE PLEASE PASS USTR FOR STRATFORD 
 
E.O. 12958: N/A 
TAGS: ECON EFIN PREL EINV CH PTER
SUBJECT: China: Central Bank Interested in Anti-money Laundering 
Cooperation 
 
SENSITIVE BUT UNCLASSIFIED; PLEASE PROTECT 
ACCORDINGLY 
 
Ref: (A) Glaser-Loevinger e-mail 7/14/08 
(B) Beijing 2941 and Previous 
 
¶1. (SBU) Summary: China's Central Bank official responsible for 
anti-moneylaundering (AML) issues confirmed Chinese concerns 
regarding the Financial Action Task Force's (FATF's) recent draft 
guidance papers on implementing the financial provisions of UNSR 
1803 regarding Iran.   The Chinese welcomed bilateral discussions 
following examination of FATF's draft guidance papers and also 
discussed Chinese progress on meeting FATF standards.  Receptive to 
further cooperation, he agreed AML issues might have a place in SED 
V, and asked for an update on U.S. relations with Iran.  End 
summary. 
 
Consultations on FATF Welcomed 
------------------------------ 
 
¶2. (SBU) On July 23, FinAtt and Econoff met with the People's Bank 
of China (PBOC) Director General for Anti-money Laundering Xu Tang 
to discuss FATF's recently issued draft guidance papers on 
implementation of UNSCR 1803. 
 
¶3. (SBU) Xu confirmed Chinese concerns about FATF's approach (see 
ref A), and said further discussions would be welcome and useful. 
As the draft guidance had just been released, PBOC would like to 
study the information first and would then respond to our offer. 
 
¶4. (SBU) Xu requested that after the September FATF mutual 
evaluation mission, given China's progress in meeting FATF's core 
standards, the United States agree to support dropping the special 
procedures that China had agreed to when joining FATF.  (Note: When 
China joined FATF, it agreed to special procedures such as reports 
on progress made in implementing core standards to be delivered at 
every plenary.  End note.) 
 
SED and AML 
----------- 
 
¶5. (SBU) Responding to a suggestion from FinAtt, Xu said PBOC would 
be willing to consider including anti-money laundering issues in the 
SED V to promote greater cooperation.  On trade-based money 
laundering, Xu acknowledged the need for a better way to share 
bilateral information, and noted PBOC's openness to suggestions on 
how to implant FATF best practices on countering such practices . 
 
Relations with Iran 
------------------- 
 
¶6.  (SBU) Xu asked whether the news that the United States was 
opening an office in Iran indicated a softening of the USG's Iran 
policy.  He asked to be kept abreast of any changes in the U.S. 
stance toward Iran as it would have implications for their own 
policies. 
 
RANDT