China is requiring religious groups to report their finances because of what it calls "prevailing malpractice." BEIJING (AP) — China is requiring religious groups to report their finances because of what it calls "prevailing malpractice."

A statement Friday on the Web site of the State Administration of Religious Affairs says registered religious groups must hire an accountant or accounting firm and submit annual financial reports.

The 130,000 groups registered with the Chinese government include churches, mosques, temples and other institutions. Registered groups are the only religious organizations accepted in China.

Official corruption is one of China's biggest challenges. The statement says religious leaders have embezzled money and property has been used for nonreligious activities, but it did not give details.

The policy takes full effect next year.