With the acceleration of economic and financial globalization，more and more Chinese corporations have acquired overseas companies in order to improve their overall competitiveness in the international market. At the same time this trend has been driven by the government’s drive to transform the economy and upgrade domestic industry. According to statistics from Thomson Reuters，there were 866 cross-border mergers and acquisitions involving Chinese companies in 2017 with the transaction volume reaching US$141.9 billion.

China has become the largest player in cross-border mergers and acquisitions in the global arena. Moreover，private enterprises have taken a more prominent role in these transactions. Listed non-state enterprises have significantly increased their stakes in quality offshore assets as part of a national policy that encourages companies to "go global." At present，China's foreign exchange management for capital account items calls for examination and approval as well as registration. The regulatory system is relatively comprehensive，but in some cases there is money laundering，terrorist financing，or tax evasion，and these activities may be disguised as legitimate cross-border flows of funds. This poses a threat to normal financial transactions and the collection of taxes as well as China's macroeconomic environment. Effectively identifying money-laundering risks in cross-border mergers and acquisitions and conducting comprehensive monitoring and effective supervision are of great importance in maintaining national financial security.

Case Analysis

In general，cross-border mergers and acquisitions are relatively large transactions，and frequently involve cash payments. Some illegal organizations use less supervised channels or engage in money laundering in the name of cross-border mergers and acquisitions. The following case of money laundering in a cross-border acquisitions serves an example. (The  the companies involved have not been identified by name).