CBIRC Strengthens Administrative Procedures for Penalising Illegal Acts

Source: Regulation Asia Editors, Regulation Asia 2020-07-06

The maximum administrative penalties for illegal acts are effectively increased to ¥5mn for banking institutions and ¥500,000 for banking industry personnel.

The CBIRC (China Banking and Insurance Regulatory Commission) has issued new measures aimed at standardising the administrative punishment procedures applied to the banking and insurance industries.

The measures seek to improve workflows related to investigations, reviews, right notifications, hearings, decisions, and execution to improve the efficiency of administrative punishment.

Under the new measures, the maximum administrative penalties for illegal acts are effectively increased to CNY 5 million for banking institutions and CNY 500,000 for banking industry personnel who commit illegal acts. For the insurance sector, the maximum penalty is CNY 1.5 million.

Besides financial penalties, the CBIRC and its dispatched agencies can also confiscate illegal income, restrict the business scope of banking and insurance institutions, order business suspensions, revoke licences, and impose industry bans against individuals.

For a foreign bank or insurance institution, penalties may include the cancellation of its representative office in China, or the removal/replacement of its chief representative.

CBIRC

CBIRC Strengthens Administrative Procedures for Penalising Illegal Acts

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