PBOC Revises Regulations on Bank Inspection and Administrative Penalty
The PBOC (People's Bank of China) revised its regulations on banking law enforcement inspections and administrative penalty procedures.
The revised banking law enforcement inspection regulations seek to address the need for greater information supervision, leverage big data in the PBOC's supervisory activities, and place equal more emphasis on off-site and on-site inspections.
The PBOC says it will conduct off-site inspections of banks' activities and risk status, establish and improve its supervision information system, strengthen the integration of regulatory information. The measures are aimed at enhancing the central bank's ability to analyse and evaluate the risk status of banks and detect any illegal behaviour in a more timely manner.
The regulations say the PBOC and its branches may conduct off-site inspections making "full use" of the Internet, big data and other technical means, and strengthen the collection and sharing of regulatory information.
The revised administrative penalty procedures seek to separate investigation and punishment, clarifying the division of responsibilities between law enforcement departments, legal departments and administrative penalty committees.
The PBOC says the notification system for administrative law enforcement and the legal review system of law enforcement decisions have been fully implemented, and the transparency of administrative punishment has been enhanced.
The procedures also clarified the rules, responsibilities and composition of the PBOC's Administrative Punishment Committee, which is responsible for trying cases and deciding on administrative punishment.
The rules require the PBOC to make an administrative penalty decision within 90 days from the date of filing an administrative penalty case, and notify the affected parties within 7 days. If a penalty needs to be paid, if must be made within 15 days.
The rules, published here, will take effect on 1 June 2022.
Source: Regulation Asia
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