BEIJING, April 27 (Xinhua) -- China's lawmakers are debating a first-strike measure that could be used to hit suspicious money launderers before the money can leave the country.

    The National People's Congress is deliberating the draft of an anti-money laundering bill which will give authorities the ability to freeze company accounts when they are suspicious of large sums of money that are being transferred out of the country.

    The suspicious funds can be frozen for up to seven days. When the anti-money laundering bureau decides not to forward the case to the police funds will immediately be released, the draft says.

    Guo Shuyan, a lawmaker with the top legislature, says authorities must be very careful in exercising such powers. He said it should be "very cautious" in granting the power to freeze company bank accounts, as a mistake could cause great trouble.

    "The draft should specify under what conditions the bureau can freeze account to prevent abuse of power," Guo said in Wednesday's caucus meeting to discuss the bill.

    Authorities should present sufficient evidence of attempted money laundering before freezing company accounts, said Lin Guangzhao, another lawmaker, adding if errors are made "it will seriously hurt the company's operation and raise business disputes."

    In Hong Kong, only courts can issue account-freezing orders. No other department has the authority to do so, said Lin, who is also vice-chairman of the Bank of China International (HK) Limited.

    Liu Jibin, director of the Budgetary Work Commission of the National People's Congress Standing Committee, said the power to freeze accounts is crucial as dirty money can flow abroad during the bureau's preliminary investigation and before the police are notified.

    "Without freezing the accounts, illicit money will be easily and quickly transferred," Liu added.

    Although the draft law provides for penalties if the bureau's power were abused, it fails to address the issue of compensation, said Ying Songnian, a member with the Committee for Internal and Judicial Affairs.

    If mistakes are made by the bureau he wants to know: "Who's going to compensate the companies and to what extent?" Ying asked. Enditem