China last Friday announced a regulation for freezing assets of terrorist groups in an attempt to cut off funds to support their terrorist activities. The regulation is part of China's effort to combat terrorism.
China is now faced with a threat from extremist Islamic groups in the Xinjiang Uygur Autonomous Region who have links with foreign terrorist groups.
The regulation which was issued jointly by the People's Bank of China, the country's central bank, the Ministry of Public Security and the Ministry of State Security will take effect immediately according to the statement released by the central bank on its website.
Since violence erupted in the region in April, at least 91 people including several police officers had been killed.
China has intensified security in Xinjiang after a car rammed into tourists in Beijing's Tian'anmen Square in October resulting in the death of two tourists and three assailants from Xinjiang. Police pointed to Islamist militants for the incident.
In 2006, China ratified an international convention that aimed to put an end to the financing of terrorism. The latest regulation would give China more legal grounds and means that they can resort to in their fight against terrorism.
Details of the regulation shown on the website of the People's Bank of China is that all financial institutions should inform them of any questionable transactions and customers they suspect to have some connections with terrorist activities.
The central bank added that the assets of people identified by the government as members of terrorist groups or are involved in terrorist activities must be frozen and all their transactions closely monitored.
Officials who do not cooperate with the regulation or give out information that may lead to illegal transfer or hiding of frozen assets will also be punished, according to the central bank.