China issued rules on Monday aimed at beefing up the country's guards against terrorism financing, requiring banks to report any suspicious transactions in a timely fashion.

The People's Bank of China, the central bank, said on its Web site (www.pbc.gov.cn) that all financial institutions would have to report any deals suspected of being related to terrorism within 10 days.

The detailed rules flesh out China's first anti-money-laundering law, which was passed late last year.

The introduction of that law paved the way for Beijing to join the Financial Action Task Force (FATF) -- a Paris-based inter-governmental body with 33 members that promotes policies to fight money laundering.

Chinese officials have said they hope to join the body this month, when the FATF is expected to vote on China's entry.

Under the rules issued on Monday, financial institutions could face punishment as severe as having their business licenses revoked if they fail to comply. The rules also allow for punishment for any executives involved in such deals.