laundering monitoring and analysis center to detect, distinguish suspicious criminal information in time and cracking down seriously and strictly money laundering and terrorist financing activities, in particular, underground banking criminal activities. 4. continue to conduct anti - money laundering examination and expand examination scope to securities and insurance companies to encourage the “ first protection line ” function of financial institutions in anti - money laundering and terrorist financing. 5. strive to join the fatf as a full member and strengthen cooperation with other countries and regions within bilateral or multilateral frameworks based on equal and mutual beneficial principles in information exchange, training, investigation assistance, property seizure and criminal suspects extradition and repatriation. 5 / 5

direct nationwide anti - money laundering efforts under the steering of the state council, stipulate important guidance and policies relevant to anti - money laundering and international cooperation policy measures, coordinate different departments and motivate the whole nation to conduct ant - money laundering. recently, the second meeting of the joint ministerial conference passed the preparation plan for fatf evaluation in principle, and relevant preparations have been already initiated in full scale. financial supervisory departments ’ anti - money laundering collaboration mechanism joined by cbrc, csrc, circ and the safe, targets to project, plan, collaborate financial institutions ’ efforts in anti - money laundering as well as the banking, securities, insurance and foreign exchange supervisory department ’ s anti - money laundering functions to reduce duplicate supervision and avoid blind area in supervision. till june 2005, 12 provinces, autonomous regions, municipalities 3 / 5 and cities with independent budget have already formed anti - money laundering collaboration mechanism among relevant agencies. iv. high attentions were paid to the role of financial institutions in anti - money laundering, and anti - money laundering supervision and funds monitoring have achieved evident results from april 2004 to december 2004, the pbc has conducted special examination on anti - money laundering by the commercial banks. according to the examination results, most commercial banks have established internal control system of anti - money laundering and fulfilled obligations related to clients ’ identity verification, transaction - record keeping and large - value and suspicious transaction reporting. the pbc also punished 72 main reporting banks of commercial banks involving total fines up to rmb 1. 7 million yuan due to their incomplete internal control systems of anti - money laundering or misreporting of suspicious transactions. the examination played active role in understanding commercial banks implementation of anti - money laundering regulations and enhanced commercial banks emphasis on anti - money laundering. at the same time, the examination accumulated precious experiences for supervision over non - banking financial institutions and other high risky areas in money laundering, such as real estate, precious metal and jewelry distribution, and cultural relic auction. in 2005, the pbc continued the special examination on commercial banks ’ anti - money laundering of the provincial level. in 2006, the pbc will expand anti - money laundering examination to securities companies and insurance companies. since the establishment of the china anti - money laundering monitoring and analysis center, it has networked with 17 commercial banks in data reporting. its cumulative number of suspicious activities reports in both rmb and foreign currencies posted 654, 400, amounting to rmb248.