yi gang : speech - giving full play to finance and promoting more efficient and resilient economic development keynote speech by mr yi gang, governor of the people's bank of china, at the annual conference of financial street forum 2021, 20 october 2021. * * * ladies and gentlemen, dear friends, good afternoon! it gives me great pleasure to attend this year ’ s financial street forum. this time the theme is “ economic resilience and financial accomplishments ”. i would like to share with you my observations on this topic. first, the system and mechanism of socialist market economy is the source and fundamental guarantee for china ’ s economic resilience. in the socialist market economy, and under the leadership of the communist party of china ( cpc ), there are hundreds of millions of market entities with clear property rights. with hard budget constraints, these market entities work hard to create value for the society and provide products and services needed by the society. in this sense, each of them is competitive ; otherwise, they are already out of business. it is these market entities who fuel the unceasing development of china ’ s economy. when the economy reeled from external shocks, these market entities manifested strong resilience. they flexibly adapted their production and operation arrangements to prices, orders, workforce and raw materials. yet on many occasions, what they faced was more fierce market competition and even life - or - death stakes. therefore, with commitment to the cpc ’ s basic lines, we focus on the central task of economic development, adhere to the four cardinal principles, continue to reform and open up, and we make improvements to the socialist market economic system. in this way, fundamental guarantee is provided for continuously vitalizing market entities and enhancing economic resilience. the covid - 19 pandemic broke out in early 2020 and has lasted till now. and china ’ s success in responding to it is sufficient to demonstrate that our socialist market economic system is more resilient than any other economic systems in the world. in terms of financial policies, the people ’ s bank of china ( pbc ) launched monetary and credit policies in the amount of rmb300 billion, rmb500 billion and rmb1 trillion respectively last year to support market entities and rolled out another rmb300 billion worth of central bank lending in september this year, which were earmarked for the support of micro, small and medium - sized enterprises ( msmes ). under the socialist market

decided in july 1989 to establish the financial action task force ( fatf ), in a bid to examine the cooperative results with respect to combating money laundering through banks and the financial system, to improve laws and rules in aml and measures, and to strengthen preventive aml measures through multi - lateral judiciary assistance. in february 1990, the fatf set out a set of forty recommendations on money laundering ( “ forty recommendations ” ). first, each country should criminalize money laundering of funds used in severe crimes. second, governments of all countries should strengthen financial supervision by urging financial institutions to develop and implement feasible internal aml control system and to fulfill the obligation of customer identification, record - keeping of customer information and transactions and detection and reporting of suspicious financial activities. third, governments should establish financial intelligence unit ( fiu ) responsible for monitoring unusual and suspicious transactions of funds, so as to achieve coordination and cooperation between appropriate ministries. fourth, countries should exchange intelligence on money laundering and conduct international cooperation in aml investigation, search and freezing of illegal funds and extradition of suspects. the forty recommendations by the fatf has become the most important guiding document in the current international aml sphere, promoting aml legislation in all countries and regions and development of the international aml system. after 9 / 11 terrorist attack, anti - terrorism is combined with aml. combating terrorist financing has become an important field of aml. aml and combating terrorist financing have become important issues of some international organizations and forums, occupying a significant niche in current international relation. after 9 / 11 terrorist attack, the us congress wasted no time in passing the usa patriot act, strengthening in an all - round way the rules for combating terrorist financing. the legislature of all countries and regions reacted to the movement quickly as well. besides some international conventions passed by the un with respect to combating terrorist financing, the fatf drafted specifically 8 more recommendations for combating terrorist financing in october 2001. the developed countries in europe and america have rendered aml and combating terrorist financing a focus of their foreign affairs, and have taken resolute measures to that effect. iii. the status quo of aml in china 1. aml legislation china ’ s criminal legislation with respect to aml almost synchronized with the international efforts. after the united nations convention against illicit traffic in narcotic drugs and psychotropic substances went into effect in 1988, china ’ s national people ’ s congress promulgated the decision on