Measures of the National Financial Regulatory Administration for Administrative Penalties
Measures of the National Financial Regulatory Administration for Administrative Penalties
Measures of the National Financial Regulatory Administration for Administrative Penalties
Order of the National Financial Regulatory Administration [2025] No. 3
April 30, 2025
(Issued by Order of the National Financial Regulatory Administration [2025] No. 3 on April 30, 2025; effective as of July 1, 2025)
Chapter I General Provisions
Article 1 These Measures are formulated in accordance with the Law of the People's Republic of China on Administrative Penalties, 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 relevant laws, to regulate the administrative penalty actions of the National Financial Regulatory Administration (the "NFRA") and its local offices, and to maintain financial order.
Article 2 These Measures shall apply to cases where financial institutions, other organizations, and individuals (hereinafter referred to as the "parties") violate laws, administrative regulations, or financial regulatory provisions, and have been subject to administrative penalties by the NFRA and its local offices in accordance with the law. Where laws, administrative regulations, or other provisions of the NFRA provide otherwise, such provisions shall prevail.
Article 3 The administrative penalties referred to in these Measures include:
(1) Warning;
(2) Public reprimand;
(3) Fine;
(4) Confiscation of illegal gains;
(5) Order to suspend operations for rectification;
(6) Revocation of financial or business licenses;
(7) Restriction on the business scope of insurance institutions;
(8) Order for insurance institutions to cease accepting new business;
(9) Cancellation of a foreign bank's representative office or a foreign insurance institution's representative office in China;
(10) Requirement to replace the chief representative of a foreign bank, or order to replace the chief representative of a foreign insurance institution's representative office in China;
(11) Disqualification or revocation of qualification for holding a position;
(12) Prohibition from engaging in banking activities or from entering the insurance industry; and
(13) Other administrative penalties as prescribed by laws and administrative regulations.
Article 4 The NFRA and its local offices shall adhere to the following principles in imposing administrative penalties:
(1) Fairness, impartiality, and transparency;
(2) Procedural legality;
(3) Proportionality between the violation and the penalty;
(4) Protection of the lawful rights and interests of the parties; and
(5) Combination of punishment and education.
Article 5 In imposing administrative penalties, the NFRA and its local offices shall enhance the quality and effectiveness of administrative penalties, promptly curb, rectify, and punish violations, effectively maintain market order, and prevent financial risks.
Article 6 The NFRA and its local offices shall implement an administrative penalty system that separates case filing and investigation, case review, and decision-making.
For cases involving complex circumstances or major violations, the imposition of administrative penalties shall be determined through collective discussion by the heads of the NFRA and its local offices.
Article 7 The NFRA and its local offices shall establish an administrative penalty committee.
An office shall be set up under the administrative penalty committee. The office of the administrative penalty committee (the "penalty office") shall be part of the administrative penalty department of the NFRA and its local offices; in cases where an administrative penalty department has not been established, the relevant departments shall perform these duties.
Article 8 Where any law enforcement officer of the NFRA or its local offices participating in administrative penalty proceedings falls under any of the following circumstances, they shall recuse themselves, and the party or its agent shall also have the right to request their recusal:
(1) Being a close relative of the party or the party's agent;
(2) Having a direct interest in the case;
(3) Having other relationships with the party or the party's agent that may affect the impartial handling of the case; or
(4) Other circumstances where recusal is required under laws, administrative regulations, or other provisions.
Where a party or its agent requests the recusal of a law enforcement officer, the reasons shall be stated. The investigation shall not be suspended before a decision on the recusal is made.
Article 9 The parties shall have the right to make statements and defend themselves regarding the administrative penalty decisions made by the NFRA and its local offices.
If dissatisfied with an administrative penalty decision, a party shall have the right to apply for administrative reconsideration or initiate administrative litigation in accordance with the law.
The NFRA and its local offices shall fully hear the opinions of the parties and review any facts, grounds, and evidence submitted by them. If such facts, grounds, and evidence are substantiated, the NFRA and its local offices shall adopt them and shall not impose a heavier penalty due to the party's statements, defense, or request for a hearing.
Article 10 Employees of the NFRA and its local offices involved in administrative penalty proceedings shall maintain the confidentiality of state secrets, trade secrets, and personal privacy they come to know in the investigation and handling of cases.
Chapter II Jurisdiction
Article 11 The NFRA shall impose administrative penalties for violations committed by financial institutions and practitioners under its direct regulation, as well as for other violations for which administrative penalties shall be imposed by the NFRA in accordance with the law.
Article 12 Local offices shall impose administrative penalties for the following violations within their respective jurisdictions:
(1) Violations committed by financial institutions and practitioners under their direct regulation;
(2) Violations involving the establishment of financial institutions without approval; and
(3) Other violations that shall be subject to administrative penalties by local offices.
The term “violations committed by practitioners” in Item (1) includes circumstances where a practitioner seriously violates laws or administrative regulations and is subject to industry ban in accordance with the law.
Article 13 Violations committed in a non-local region shall, in principle, fall under the jurisdiction of the local office where the violation occurs.
Where a local office discovers a violation outside its jurisdiction, it shall transfer the case to the competent local office. If two or more local offices have jurisdiction over the same violation, the local office that first initiates the case shall have jurisdiction.
In cases of unclear or disputed jurisdiction, the common higher-level authority shall designate the competent local office.
Article 14 Where violations that require imposition of administrative penalties are discovered during cross-inspection, cross-regional inspection, or audit, the matter shall be referred to the competent regulatory authority for case filing and investigation, and relevant evidence materials shall be promptly transferred.
Article 15 A higher-level authority may directly investigate and handle violations that would otherwise fall under the jurisdiction of a lower-level authority. It may also authorize a lower-level authority to investigate and handle violations under its own jurisdiction or under the jurisdiction of another lower-level authority.
Delegation of jurisdiction shall be made in written form.
Article 16 The NFRA and its local offices may, when necessary for the imposition of administrative penalties, request assistance from relevant authorities.
During joint law enforcement activities with other authorities, if the NFRA and its local offices find that administrative penalties need to be imposed, the provisions of these Measures shall apply, if there are other provisions, those provisions shall apply.
Article 17 If a party's violation does not fall under the jurisdiction of the NFRA or its local offices, the department responsible for case filing and investigation shall promptly transfer the case to the competent authority in accordance with the law.
If a party's violation is suspected of constituting a crime, the department responsible for case filing and investigation shall promptly refer the case to the public security authority or other competent authority in accordance with relevant provisions on the transfer of suspected criminal cases by administrative enforcement agencies.
Chapter III Case Filing and Investigation
Article 18 Where the NFRA and its local offices discover that a party is suspected of violating laws, administrative regulations, or financial regulatory provisions and that an administrative penalty should be imposed in accordance with the law, they shall promptly initiate case filing procedures.
The department responsible for case filing and investigation shall complete the investigation within 90 days from the date of case filing and promptly refer the case for review. In special circumstances, an appropriate extension may be granted.
Article 19 Where it is discovered after case filing that the requirements for initiating an administrative penalty case are not met, the case shall be closed in accordance with procedures.
Article 20 Investigators shall conduct a comprehensive, objective, and impartial investigation into the facts of the case and collect evidence in accordance with the law.
Evidence obtained through on-site inspections, verifications, or audits conducted in accordance with the law prior to case filing that meets the evidentiary requirements for administrative penalties may be used as evidence in the administrative penalty case, provided that such circumstances are specified in the investigation report.
Article 21 In cases where there is a possibility that evidence may be lost or become difficult to obtain later, measures for preliminary registration and preservation of evidence may be taken.
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Order of the National Financial Regulatory Administration [2025] No. 3
April 30, 2025
(Issued by Order of the National Financial Regulatory Administration [2025] No. 3 on April 30, 2025; effective as of July 1, 2025)
Chapter I General Provisions
Article 1 These Measures are formulated in accordance with the Law of the People's Republic of China on Administrative Penalties, 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 relevant laws, to regulate the administrative penalty actions of the National Financial Regulatory Administration (the "NFRA") and its local offices, and to maintain financial order.
Article 2 These Measures shall apply to cases where financial institutions, other organizations, and individuals (hereinafter referred to as the "parties") violate laws, administrative regulations, or financial regulatory provisions, and have been subject to administrative penalties by the NFRA and its local offices in accordance with the law. Where laws, administrative regulations, or other provisions of the NFRA provide otherwise, such provisions shall prevail.
Article 3 The administrative penalties referred to in these Measures include:
(1) Warning;
(2) Public reprimand;
(3) Fine;
(4) Confiscation of illegal gains;
(5) Order to suspend operations for rectification;
(6) Revocation of financial or business licenses;
(7) Restriction on the business scope of insurance institutions;
(8) Order for insurance institutions to cease accepting new business;
(9) Cancellation of a foreign bank's representative office or a foreign insurance institution's representative office in China;
(10) Requirement to replace the chief representative of a foreign bank, or order to replace the chief representative of a foreign insurance institution's representative office in China;
(11) Disqualification or revocation of qualification for holding a position;
(12) Prohibition from engaging in banking activities or from entering the insurance industry; and
(13) Other administrative penalties as prescribed by laws and administrative regulations.
Article 4 The NFRA and its local offices shall adhere to the following principles in imposing administrative penalties:
(1) Fairness, impartiality, and transparency;
(2) Procedural legality;
(3) Proportionality between the violation and the penalty;
(4) Protection of the lawful rights and interests of the parties; and
(5) Combination of punishment and education.
Article 5 In imposing administrative penalties, the NFRA and its local offices shall enhance the quality and effectiveness of administrative penalties, promptly curb, rectify, and punish violations, effectively maintain market order, and prevent financial risks.
Article 6 The NFRA and its local offices shall implement an administrative penalty system that separates case filing and investigation, case review, and decision-making.
For cases involving complex circumstances or major violations, the imposition of administrative penalties shall be determined through collective discussion by the heads of the NFRA and its local offices.
Article 7 The NFRA and its local offices shall establish an administrative penalty committee.
An office shall be set up under the administrative penalty committee. The office of the administrative penalty committee (the "penalty office") shall be part of the administrative penalty department of the NFRA and its local offices; in cases where an administrative penalty department has not been established, the relevant departments shall perform these duties.
Article 8 Where any law enforcement officer of the NFRA or its local offices participating in administrative penalty proceedings falls under any of the following circumstances, they shall recuse themselves, and the party or its agent shall also have the right to request their recusal:
(1) Being a close relative of the party or the party's agent;
(2) Having a direct interest in the case;
(3) Having other relationships with the party or the party's agent that may affect the impartial handling of the case; or
(4) Other circumstances where recusal is required under laws, administrative regulations, or other provisions.
Where a party or its agent requests the recusal of a law enforcement officer, the reasons shall be stated. The investigation shall not be suspended before a decision on the recusal is made.
Article 9 The parties shall have the right to make statements and defend themselves regarding the administrative penalty decisions made by the NFRA and its local offices.
If dissatisfied with an administrative penalty decision, a party shall have the right to apply for administrative reconsideration or initiate administrative litigation in accordance with the law.
The NFRA and its local offices shall fully hear the opinions of the parties and review any facts, grounds, and evidence submitted by them. If such facts, grounds, and evidence are substantiated, the NFRA and its local offices shall adopt them and shall not impose a heavier penalty due to the party's statements, defense, or request for a hearing.
Article 10 Employees of the NFRA and its local offices involved in administrative penalty proceedings shall maintain the confidentiality of state secrets, trade secrets, and personal privacy they come to know in the investigation and handling of cases.
Chapter II Jurisdiction
Article 11 The NFRA shall impose administrative penalties for violations committed by financial institutions and practitioners under its direct regulation, as well as for other violations for which administrative penalties shall be imposed by the NFRA in accordance with the law.
Article 12 Local offices shall impose administrative penalties for the following violations within their respective jurisdictions:
(1) Violations committed by financial institutions and practitioners under their direct regulation;
(2) Violations involving the establishment of financial institutions without approval; and
(3) Other violations that shall be subject to administrative penalties by local offices.
The term “violations committed by practitioners” in Item (1) includes circumstances where a practitioner seriously violates laws or administrative regulations and is subject to industry ban in accordance with the law.
Article 13 Violations committed in a non-local region shall, in principle, fall under the jurisdiction of the local office where the violation occurs.
Where a local office discovers a violation outside its jurisdiction, it shall transfer the case to the competent local office. If two or more local offices have jurisdiction over the same violation, the local office that first initiates the case shall have jurisdiction.
In cases of unclear or disputed jurisdiction, the common higher-level authority shall designate the competent local office.
Article 14 Where violations that require imposition of administrative penalties are discovered during cross-inspection, cross-regional inspection, or audit, the matter shall be referred to the competent regulatory authority for case filing and investigation, and relevant evidence materials shall be promptly transferred.
Article 15 A higher-level authority may directly investigate and handle violations that would otherwise fall under the jurisdiction of a lower-level authority. It may also authorize a lower-level authority to investigate and handle violations under its own jurisdiction or under the jurisdiction of another lower-level authority.
Delegation of jurisdiction shall be made in written form.
Article 16 The NFRA and its local offices may, when necessary for the imposition of administrative penalties, request assistance from relevant authorities.
During joint law enforcement activities with other authorities, if the NFRA and its local offices find that administrative penalties need to be imposed, the provisions of these Measures shall apply, if there are other provisions, those provisions shall apply.
Article 17 If a party's violation does not fall under the jurisdiction of the NFRA or its local offices, the department responsible for case filing and investigation shall promptly transfer the case to the competent authority in accordance with the law.
If a party's violation is suspected of constituting a crime, the department responsible for case filing and investigation shall promptly refer the case to the public security authority or other competent authority in accordance with relevant provisions on the transfer of suspected criminal cases by administrative enforcement agencies.
Chapter III Case Filing and Investigation
Article 18 Where the NFRA and its local offices discover that a party is suspected of violating laws, administrative regulations, or financial regulatory provisions and that an administrative penalty should be imposed in accordance with the law, they shall promptly initiate case filing procedures.
The department responsible for case filing and investigation shall complete the investigation within 90 days from the date of case filing and promptly refer the case for review. In special circumstances, an appropriate extension may be granted.
Article 19 Where it is discovered after case filing that the requirements for initiating an administrative penalty case are not met, the case shall be closed in accordance with procedures.
Article 20 Investigators shall conduct a comprehensive, objective, and impartial investigation into the facts of the case and collect evidence in accordance with the law.
Evidence obtained through on-site inspections, verifications, or audits conducted in accordance with the law prior to case filing that meets the evidentiary requirements for administrative penalties may be used as evidence in the administrative penalty case, provided that such circumstances are specified in the investigation report.
Article 21 In cases where there is a possibility that evidence may be lost or become difficult to obtain later, measures for preliminary registration and preservation of evidence may be taken.
......