Circular of the National Financial Regulatory Administration on Issuing the Measures for the Management of Criminal Cases Involving Financial Institutions
Circular of the National Financial Regulatory Administration on Issuing the Measures for the Management of Criminal Cases Involving Financial Institutions
Circular of the National Financial Regulatory Administration on Issuing the Measures for the Management of Criminal Cases Involving Financial Institutions
Jin Gui [2024] No.12
September 2, 2024
All financial regulatory bureaus under the National Financial Regulatory Administration; all policy banks, large-scale banks, joint-stock banks, foreign-funded banks, direct banks, financial asset management companies, financial asset investment companies, and wealth management companies; and all insurance group (holding) companies, insurance companies, insurance asset management companies, pension management companies, and all financial holding companies,
The Measures for the Management of Criminal Cases Involving Financial Institutions are hereby issued to you for your earnest implementation.
Measures for the Management of Criminal Cases Involving Financial Institutions
Chapter I General Provisions
Article 1 These Measures are formulated in accordance with the Banking Regulation Law of the People's Republic of China, the Law of the People's Republic of China on Commercial Banks, the Insurance Law of the People's Republic of China, and other laws and regulations for the purposes of regulating and strengthening the management of criminal cases involving financial institutions (hereinafter referred to as the “case” or “cases”), establishing a mechanism with well-defined responsibilities and efficient coordination, and handling the cases in a lawful, timely, and reliable manner.
Article 2 For the purposes of these Measures, “financial institutions” refer to financial holding companies, policy banks, commercial banks, rural cooperative banks, rural credit cooperatives, rural fund mutual aid societies, loan companies, financial asset management companies, finance companies of enterprise groups, financial leasing companies, auto finance companies, consumer finance companies, money brokerage companies, trust companies, wealth management companies, financial asset investment companies, life insurance companies, property insurance companies, insurance asset management companies, insurance group (holding) companies, reinsurance companies, policy insurance companies, mutual insurance agencies, professional insurance agencies, and insurance brokers established within the territory of the People's Republic of China.
These Measures shall apply to the offices of foreign banks, offices of foreign insurance institutions, insurance assessors, and other institutions regulated by the National Financial Regulatory Administration (NFRA) and its local offices.
Article 3 For the purposes of these Measures, “case management” involves case information submission, and case handling, supervision, and management, among others.
Article 4 Case management shall adhere to the principles of institutions taking the lead, territorial regulation, classified accountability, and handling pursuant to the law.
Article 5 A financial institution shall assume the primary responsibility for case management by establishing a case management system commensurate with its volume of assets, business complexity, and internal control requirements, formulating and effectively implementing its management rules, and completing the work on case information filing, case handling, and other work within the institution.
Article 6 The NFRA shall guide and urge its local offices and financial institutions to engage in case management, manage the cases involving the corporate head office of financial institutions directly regulated by the NFRA, and develop regulatory rules and information technology measures on case management.
The NFRA may investigate and dispose of cases under the jurisdiction of its local offices or authorize or designate its local offices to handle the cases under its jurisdiction.
Article 7 Local offices of the NFRA at various levels shall, in accordance with the principle of local supervision, be responsible for the case management within their respective jurisdictions and undertake the tasks authorized or assigned by superior regulators, and, where necessary, may investigate and dispose of the cases under the jurisdiction of lower-level offices.
Chapter II Definition of “Case”
Article 8 “Case” refers to a criminal case in which any employees of a financial institution, during the course of business operations, exploit their position to infringe upon the legitimate rights and interests of the institution or its clients, and has been filed and investigated by public security, judicial, supervisory or other authorities.
Criminal cases in which an employee of a financial institution uses any important blank vouchers, seals, business premises, etc., of their institution against regulations to exploit the institution's credit for participating in illegal fundraising or other illegal financial activities, and which have been filed and investigated by public security, judicial, or supervisory authorities, shall be managed as cases.
Article 9 A case risk incident refers to an event that may evolve into a case but has not yet met the criteria for recognition as a case. A case risk incident may involve any of the following:
(1) A staff member or employee of a financial institution is suspected of taking advantage of his or her position to infringe upon the legitimate rights and interests of such financial institution or any client thereof during business operation, and the financial institution has filed the incident with the relevant public security, judicial, supervisory, or any other authorities, while the case has not yet been filed.
(2) A staff member or employee of a financial institution has been investigated by the relevant public security, judicial, supervisory, or any other authorities, while it is unclear whether his or her illegal or criminal act is related to business operations.
Article 10 A case shall be considered a major case in any of the following circumstances:
(1) The balance of the business involved is equivalent to RMB1 billion or more;
(2) At any time point from the affirmation of the case to the closure of the case, the amount of risk exposure (namely the amount involved in the case minus the cash recovered or cash equivalents) is equivalent to RMB500 million or more and accounts for 10% or more of the net assets of the corporate head office under the case;
(3) The case is of a severe nature, has caused significant negative public sentiment, has resulted in bank runs or massive policy surrenders, or may induce any regional systemic risk, leading to significant adverse social impacts; or
(4) Any other circumstance considered by the NFRA or any of its local offices as a major case.
Article 11 A case discovered through self-examination refers to a case where the financial institution concerned takes the initiative to discover case leads, file the case, and promptly submit a case report to the case management department of the NFRA or the local office through internal channels such as risk investigation, business inspection, internal audit, disciplinary supervision, patrol inspection, or complaints received by the said institution in the process of daily business operation or management.
A case discovered through channels such as a complaint from external transfer, external auditing, regulatory inspection, public opinion monitoring, or external patrol inspection shall not be deemed as a case discovered through self-examination.
Chapter III Information Filing
Article 12 A financial institution in question shall submit a report to the local office or the corporate head office within five workdays as soon as it becomes aware of or should become aware of the occurrence of a case.
......
Jin Gui [2024] No.12
September 2, 2024
All financial regulatory bureaus under the National Financial Regulatory Administration; all policy banks, large-scale banks, joint-stock banks, foreign-funded banks, direct banks, financial asset management companies, financial asset investment companies, and wealth management companies; and all insurance group (holding) companies, insurance companies, insurance asset management companies, pension management companies, and all financial holding companies,
The Measures for the Management of Criminal Cases Involving Financial Institutions are hereby issued to you for your earnest implementation.
Measures for the Management of Criminal Cases Involving Financial Institutions
Chapter I General Provisions
Article 1 These Measures are formulated in accordance with the Banking Regulation Law of the People's Republic of China, the Law of the People's Republic of China on Commercial Banks, the Insurance Law of the People's Republic of China, and other laws and regulations for the purposes of regulating and strengthening the management of criminal cases involving financial institutions (hereinafter referred to as the “case” or “cases”), establishing a mechanism with well-defined responsibilities and efficient coordination, and handling the cases in a lawful, timely, and reliable manner.
Article 2 For the purposes of these Measures, “financial institutions” refer to financial holding companies, policy banks, commercial banks, rural cooperative banks, rural credit cooperatives, rural fund mutual aid societies, loan companies, financial asset management companies, finance companies of enterprise groups, financial leasing companies, auto finance companies, consumer finance companies, money brokerage companies, trust companies, wealth management companies, financial asset investment companies, life insurance companies, property insurance companies, insurance asset management companies, insurance group (holding) companies, reinsurance companies, policy insurance companies, mutual insurance agencies, professional insurance agencies, and insurance brokers established within the territory of the People's Republic of China.
These Measures shall apply to the offices of foreign banks, offices of foreign insurance institutions, insurance assessors, and other institutions regulated by the National Financial Regulatory Administration (NFRA) and its local offices.
Article 3 For the purposes of these Measures, “case management” involves case information submission, and case handling, supervision, and management, among others.
Article 4 Case management shall adhere to the principles of institutions taking the lead, territorial regulation, classified accountability, and handling pursuant to the law.
Article 5 A financial institution shall assume the primary responsibility for case management by establishing a case management system commensurate with its volume of assets, business complexity, and internal control requirements, formulating and effectively implementing its management rules, and completing the work on case information filing, case handling, and other work within the institution.
Article 6 The NFRA shall guide and urge its local offices and financial institutions to engage in case management, manage the cases involving the corporate head office of financial institutions directly regulated by the NFRA, and develop regulatory rules and information technology measures on case management.
The NFRA may investigate and dispose of cases under the jurisdiction of its local offices or authorize or designate its local offices to handle the cases under its jurisdiction.
Article 7 Local offices of the NFRA at various levels shall, in accordance with the principle of local supervision, be responsible for the case management within their respective jurisdictions and undertake the tasks authorized or assigned by superior regulators, and, where necessary, may investigate and dispose of the cases under the jurisdiction of lower-level offices.
Chapter II Definition of “Case”
Article 8 “Case” refers to a criminal case in which any employees of a financial institution, during the course of business operations, exploit their position to infringe upon the legitimate rights and interests of the institution or its clients, and has been filed and investigated by public security, judicial, supervisory or other authorities.
Criminal cases in which an employee of a financial institution uses any important blank vouchers, seals, business premises, etc., of their institution against regulations to exploit the institution's credit for participating in illegal fundraising or other illegal financial activities, and which have been filed and investigated by public security, judicial, or supervisory authorities, shall be managed as cases.
Article 9 A case risk incident refers to an event that may evolve into a case but has not yet met the criteria for recognition as a case. A case risk incident may involve any of the following:
(1) A staff member or employee of a financial institution is suspected of taking advantage of his or her position to infringe upon the legitimate rights and interests of such financial institution or any client thereof during business operation, and the financial institution has filed the incident with the relevant public security, judicial, supervisory, or any other authorities, while the case has not yet been filed.
(2) A staff member or employee of a financial institution has been investigated by the relevant public security, judicial, supervisory, or any other authorities, while it is unclear whether his or her illegal or criminal act is related to business operations.
Article 10 A case shall be considered a major case in any of the following circumstances:
(1) The balance of the business involved is equivalent to RMB1 billion or more;
(2) At any time point from the affirmation of the case to the closure of the case, the amount of risk exposure (namely the amount involved in the case minus the cash recovered or cash equivalents) is equivalent to RMB500 million or more and accounts for 10% or more of the net assets of the corporate head office under the case;
(3) The case is of a severe nature, has caused significant negative public sentiment, has resulted in bank runs or massive policy surrenders, or may induce any regional systemic risk, leading to significant adverse social impacts; or
(4) Any other circumstance considered by the NFRA or any of its local offices as a major case.
Article 11 A case discovered through self-examination refers to a case where the financial institution concerned takes the initiative to discover case leads, file the case, and promptly submit a case report to the case management department of the NFRA or the local office through internal channels such as risk investigation, business inspection, internal audit, disciplinary supervision, patrol inspection, or complaints received by the said institution in the process of daily business operation or management.
A case discovered through channels such as a complaint from external transfer, external auditing, regulatory inspection, public opinion monitoring, or external patrol inspection shall not be deemed as a case discovered through self-examination.
Chapter III Information Filing
Article 12 A financial institution in question shall submit a report to the local office or the corporate head office within five workdays as soon as it becomes aware of or should become aware of the occurrence of a case.
......