China has unveiled a set of measures to further financial reforms in the Shanghai Free Trade Zone, a key test bed for its economic innovations.

The Shanghai branch of China's central bank has announced a detailed plan to fight against money-laundering and funding for terrorism. It has vowed to improve internal controls and monitoring of money flow in the zone.

Meanwhile, banks inside the nearly 30-square-kilometer zone are allowed to pay clients as much as they want on small foreign currency deposits starting today.

The central bank says the move is a key step towards implementing a market-based system for setting interest rates.

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