NFRA Issues the Working Rules for Administrative Licensing of Policy Financial Institutions

Recently, the National Financial Regulatory Administration (NFRA) has issued the Working Rules for Administrative Licensing of Policy Financial Institutions (the "Rules"), which take effect on the date of issuance.

The Rules cover general provisions, establishment of institutions, changes to institutions, termination of institutions, adjustments to business scope and addition of business lines, and the licensing of the qualifications for directors and senior officers. The NFRA and its local offices, in accordance with the principles of law-based administration and strict prudence, shall implement administrative licensing for policy financial institutions and conduct reviews on matters related to anti-money laundering, counter-terrorist financing, and the prevention of involvement in organized crimes. The Rules further specify that a policy bank applying to invest in or establish overseas institutions, including overseas first-tier branches, representative offices, or other first-tier establishments, must satisfy nine conditions. These include: (1) alignment with the functional positioning of policy financial institutions and compliance with national macroeconomic, industrial, and outbound investment policies; and (2) having a sound corporate governance structure, effective internal controls, and business line management and risk control capabilities commensurate with the development of its overseas business.



(Source: https://www.nfra.gov.cn/cn/view/pages/ItemDetail.html?docId=1236057&itemId=928)

Note: The link to the Chinese official website of the document is for your reference.