The People's Bank of China (PBC) has drafted the Interim Provisions on Discretion Benchmark for Administrative Penalties of the People's Bank of China (Draft for Comment) (the "Draft") and the Decision on Revising Some Regulations (Draft for Comment) to solicit public opinions by June 24, 2024.
The Draft mainly involves: (1) clarifying the definition of the discretion benchmark for administrative penalties and setting strict application requirements; (2) refining the discretionary levels and applicable circumstances; (3) standardizing the application method of discretion benchmark for administrative penalties; and (4) improving the guarantee mechanism for application. Notably, the Draft specifies the basic connotations of no penalty, mitigated penalty, lighter penalty, general penalty, and heavier penalty, and, under the principle of generally equal distribution, determines the corresponding penalty ranges of lighter penalty, general penalty and heavier penalty. Meanwhile, the specific circumstances under which mitigated penalty, lighter penalty, and heavier penalty shall be applicable are stipulated as per the provisions and authorization of the Law of the People's Republic of China on Administrative Penalties (Revised in 2021) and upon taking into account the actual work of the central bank.