Janet Yellen and China's central banker discuss financial supervision and money laundering

US Treasury Secretary Janet Yellen met in Washington this week with the deputy governor of China’s central bank, Xuan Chengneng, to discuss coordination on financial market supervision and money laundering.

The talks this week marked a continuation of the sixth meeting of a bilateral economic working group and took place on the sidelines of the annual meetings of the World Bank And International Monetary Fund.

They also followed Yellen’s meeting last week with Chinese Vice Minister of Finance Liao Min, about Beijing’s most ambitious incentives since the corona pandemic and addressing other macroeconomic issues.

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Discussions about the stimulus measures continued during Yellen’s talks with Xuan, which were co-led by her assistant secretary for international affairs, Brent Neiman.

Chinese Vice Minister of Finance Liao Min discussed macroeconomic issues with Yellen last week. Photo: AFP

According to a Treasury Department statement on Thursday, Neiman and Xuan “also received readouts of… technical exercises on reporting international macroeconomic data, strengthening communications in the event of bank stress, and climate and insurance risks.”

“The Joint Treasury-People’s Bank of China Cooperation and Exchange on Anti-Money Laundering also held its third meeting” as part of this week’s talks, and “both sides raised areas of concern.”

The statement did not elaborate.

Separately, the People’s Bank of China said the Chinese side has briefed the US on recent monetary policies rolled out in recent weeks, including the 500 billion yuan swap program that allowed brokers, fund companies and insurers to obtain liquidity from the central banks. bank by pledging assets for the purchase of shares.

It was announced on October 21 and was the first such operation by the Chinese central bank. It was considered an attempt to provide liquidity to the stock market and boost investor confidence.

“Meanwhile, the Chinese delegation has expressed its concerns to the US on certain issues,” she added, without giving further details.

Issues on “financial policy topics of mutual interest” were also discussed, including “the macroeconomic and financial situation… monetary and financial policy, financial stability and regulation, capital markets, anti-money laundering and anti-financing of terrorism”.

The negotiations were “professional, pragmatic, frank and constructive,” the Chinese statement said.

China’s highest legislative body recently conducted a review of draft revisions to the Anti-Money Laundering Law, which aim to “monitor and analyze emerging money laundering risks,” with a focus on emerging technologies such as cryptocurrency.

China’s Supreme Court and Supreme People’s Procuratorate in August revised laws to include cryptocurrencies, online gaming coins and tips during livestreaming as channels for money laundering.

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