A regulation on how to deal with money involved in telecom and online fraud is being brewed up by the Ministry of Public Security, so as to implement a newly adopted law and improve work efficiency, an official said.
With rapid development of internet finance, many fraudsters are transferring or laundering illicit gains by means that are too private and quick to be discovered, such as third-party payment platforms, digital currencies or trade hedging, according to Jiang Guoli, deputy head of the Criminal Investigation Bureau with the Ministry of Public Security.
He told the trend in a group interview on Monday, saying that those new means have also brought difficulties for police in investigations and helping victims to recover their financial losses.
He lauded the Anti-Telecom and Online Law, which was passed by the Standing Committee of the National People's Congress, China's top legislature, last week, adding "it provides legal support for police officers in the disposal of fraudulent money."
He said that public security organs nationwide have begun learning the law that will be effective on Dec 1, releasing that the ministry is also making a regulation to streamline the work flow to ensure that the fraudulent money can be disposed efficiently.
In recent years, Chinese public security departments have worked with the financial authorities, including People's Bank of China and China Banking and Insurance Regulatory Commission, to take measures to help recover financial losses of victims in fraud-related cases, according to him.
Under the cooperation, an online platform for stopping payment and freezing money was established, which helped stop some 1.5 million people trying to pay scammers in a timely manner last year, he said.
Besides, financial institutions and payment platform operators have also been asked to set up risk alert systems by using big data, and urged to block transactions from accounts suspected of telecom and online fraud, he added.
Zhang Yijian, an official from the NPC Standing Committee's Legislative Affairs Commission, highlighted the importance of forming joint efforts in the fight against fraud, saying that this new law has clarified responsibilities of government agencies, judicial authorities and enterprises.
He called for government departments at each level to play the leading role in the fight, underlining that public security organs should timely file fraud-related cases.
He said that finance, telecommunication and internet departments should increase inspections in the sectors, adding that the law has also allowed prosecutors to initiate public-interest litigation against fraud.
"Additionally, those working for the sectors, or who are found abusing power or having malpractice in the fight against telecom and online fraud will be held accountable in line with the law," he said.
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