January 17 (CNS) - According to the news website of the People's Bank of China, the People's Bank of China teamed up with the Ministry of Public Security and the Ministry of State Security to develop "Management Practices for the Freezing of Assets Related to Terrorist Activities" (herein after referred to as the "Practices") following in line with the "Decision of the Standing Committee of the National People's Congress on Strengthening Counterterrorism Work" (herein after referred to as the "Decision"), which will take effect beginning January 10, 2014.

Promptly freezing assets related to terrorism is an important as well as effective measure in preventing and combating terrorist activities. The resolution of the Security Council of the United Nations requires all states to freeze assets related to terrorism "without delay". On October 29, 2011, the Standing Committee of the National People's Congress passed the Decision, which clearly defines that financial institutions and certain non-financial institutions shall immediately freeze assets related to terrorist organizations and personnel of terrorist activities. In addition, such institutions have a legal obligation in reporting to relevant national authorities. At the same time, the Decision also authorizes the Ministry of Public Security under the People's Bank of China in collaboration with the Ministry of Public Security and the National Security Ministry to take certain measures in freezing assets related to terrorist activities.

The Practices defines procedures and requirements for freezing assets related to terrorism. After the Ministry of Public Security released a list of provisions for terrorist organizations and personnel of terrorist activities, financial institutions and certain non-financial institutions shall take measures to immediately freeze assets of those listed organizations or personnel. The Practices have a total of twenty-two provisions, which includes six areas, namely, the obligations that financial institutions and certain non-financial institutions must perform in freezing assets, conditions for taking measures to unfreeze assets, managing frozen assets, protecting the legitimate interests of involved parties, freezing foreign assets, supervising, and punishing. Although this mainly applies to financial institutions and certain non-financial institutions established in China, it also asks that their branches and subsidiaries fulfill such relevant reporting obligations.

The People's Bank of China will develop related systems within the relevant departments in order to strengthen guidance and supervision of the status where financial institutions and certain non-financial institutions implement the Practices.