paris the financial action task force fatf rerated chinas progress made on money laundering and terror financing the country has been upgraded on two recommendations recommendation 7 targeted financial sanctions related to proliferation and recommendation 24 transparency and beneficial ownership of legal persons read a parisbased watchdog report the fatf plenary adopted the mutual evaluation report mer of china in february 2019 its 1st enhanced followup report fur with technical compliance reratings tcrr in october 2020 and its 2nd enhanced fur with tcrr in october 2021 this 3rd fur analyses chinas progress in addressing the technical compliance deficiencies identified in its mer overall china has made progress in addressing some of the technical compliance deficiencies identified in its 32016 mutual evaluation report read the report china is now compliant on 9 recommendations largely compliant on 22 and partially compliant on 5 recommendations the country remains noncompliant with four recommendations china will remain in enhanced followup and will continue to inform the fatf of progress achieved in improving the implementation of its amlcft measures given these results and chinas level of effectiveness the fatf placed china in enhanced followup patricia godinho silva legal advisor bank of portugal conducted the analysis of the rerating section 3 of this report summarises chinas progress made in improving technical compliance section 4 sets out the conclusion and a table showing which recommendations have been rerated reratings are given where sufficient progress has been made overall the expectation is that countries will have addressed most if not all technical compliance deficiencies by the end of the third year from the adoption of their mer this report does not address what progress china has made to improve its effectiveness notably china has china in recent months has blocked several bids to designate several terrorists based in pakistan beijing put on hold a proposal to list talha saeed son of lashkaretaiba let chief hafiz saeed this bid was moved by india and cosupported by the us under the 1267 sanction regime fatf is the global money laundering and terrorist financing watchdog set up in 1989 out of a g7 meeting of developed nations in paris initially its objective was to examine and develop measures to combat money laundering after the 911 attacks on the us the fatf 2001 expanded its mandate to incorporate efforts to combat terrorist financing in april 2012 it added efforts to counter the financing of the proliferation of weapons of mass destruction wmd