A sound practice in AML also constitutes the concrete measure for safeguarding the order of China’s socialist market economy and the fundamental interests of the masses and for practicing the important thoughts of “Three Represents”.
For want of collaterals, the poor cannot access even elementary banking services, resulting not only in some potential saving getting lost but leaving the society more unequal and polarized with insufficient support for Pareto superior outcomes just because gainers can’t compensate the losers. Finance must be regulated more tightly. This does not require more regulations but perhaps less and newer regulations with greater effectiveness.