The China Banking Regulatory Commission issued guidelines instructing commercial banks to improve risk and compliance management for offshore investment projects, Reuters reported Jan. 25.

The move is the latest in a series of guidelines from the Chinese government as it seeks to curb capital outflows and clamp down on questionable investments.

The regulator also told banks to improve their supervision of anti-money laundering and anti-terrorist financing activities, as well as to strengthen due diligence and post-loan management.

In addition, the regulator wants banks to improve oversight of their offshore branches, making sure they comply with the local legal, tax and regulatory requirements. The move is expected to cut regulatory problems abroad similar to that faced by Agricultural Bank of China Ltd. in 2016 after its New York branch violated anti-money laundering laws in the U.S.