金融违法行为处罚办法 Measure for Punishing Illegal Banking Activities

(Adopted at the 13th Executive Meeting of the State Council on January 14, 1999, and promulgated by Decree No. 260 of the State Council of the People's Republic of China on February 22, 1999)
颁布日期：19990222 　实施日期：19990222 　颁布单位：国务院

　　Article 1 These Measures are enacted for the purpose of punishing illegal banking activities, maintaining banking order, and preventing banking risks.

　　Article 2 If a banking institution violates the provisions on banking control of the State, and the relevant laws and administrative regulations contain penal provisions, the banking institution shall be punished according to the said provisions; if the relevant laws and administrative regulations do not contain penal provisions, the banking institution shall be punished according to these Measures.

　　The term "banking institution" in these Measures means the financial institutions that are legally established and engaged in banking business within the territory of the People's Republic of China, and includes banks, credit cooperatives, finance companies, trust and investment companies, lease financing companies, etc.

　　Article 3 Administrative sanctions stipulated in these Measure shall be decided by the People's Bank of China; however, the administrative sanctions stipulated in Article 24 and Article 25 of these Measures shall be decided by the foreign exchange control department of the State.

　　Disciplinary sanctions stipulated in these Measures, including warning, recording of a demerit, recording of a major demerit, demotion, removal from post, placement on probation and dismissal, shall be decided by the employing banking institution or the banking institution at a higher level.

　　Any employee of a banking institution who has been subjected to the disciplinary sanction of dismissal according to these Measures shall not work in any banking institution again, and the People's Bank of China shall notify all banking institution that he or she may not be employed and publish an announcement to that effect in national newspapers. With respect to a senior management employee of a banking institution who has been subjected to the disciplinary sanction of removal from his or her post in accordance with these Measures, the people's bank of China shall decide that he or she may not, for a set period of time or ever again, hold senior management post or a post equivalent to his or her former post in any banking institution, and it shall notify all banking institution that he or she may not be employed and publish an announcement to that effect in national newspapers.

　　The term "senior management employees" in these Measures means legal representatives of banking institutions and other principal persons in charge, including the chairmen of the board of directors, vice chairmen of the board of directors, bank managers, deputy bank managers, heads and deputy heads of banks and their branches;

　　The chairmen of administrative board, vice chairmen of administrative board, heads and deputy heads of credit cooperatives; and the chairmen of the board of directors, vice-chairmen of the board of directors, general managers, deputy general managers, etc. of banking institutions such as finance companies, trust and investment companies, lease financing companies, etc.

　　Article 4 Any employee of a banking institution who, after leaving a banking institution, is found to have violated the provisions on banking control of the State during the period of working in the banking institution, shall be investigated for liability according to law.

　　Article 5 The establishment, merger or closure of branches or representative offices by banking institutions shall be subject to the approval of the People's Bank of China.

　　A banking institution that establishes, mergers or closes a branch or representative office without the approval of the People's Bank of Chin

a shall be given a warning, and fined not less than 300,000 yuan but not more than 50,000 yuan; the senior management employees directly responsible of the said banking institution shall be given a disciplinary sanction ranging from removal from their posts to dismissal.

　　Article 6 With respect to any one of the following circumstances, a banking institution shall apply to the People's Bank of China for approval:

　　(1) makes a change to its name;

　　(2) makes a change to its registered capital;

　　(3) makes a change to its location;

　　(4) makes a change in its senior management employees; or

　　(5) makes other changes stipulated by the People's Bank of China.

　　If a banking institution under any one of the circumstances mentioned in the preceding paragraph does not apply to the People's Bank of China for approval, the institution shall be given a warning and fined not less than 10,000 yuan but not more than 100,000 yuan; under the circumstances prescribed in the fourth item of the preceding paragraph, the senior management employees of the banking institution who are directly responsible shall be given disciplinary sanctions ranging from removal from their posts to dismissal.

　　Article 7 Any banking institution that alters shareholders, transfers stock ownership or adjusts stock structure shall apply to the People's Bank of China for approval; a banking institution that involves a change in State-owned stock shall apply to finance departments for approval according to relevant provisions.

　　Any banking institution that alters shareholders, transfers stock ownership, or adjusts stock structure without legal approval shall be given a warning, have illegal income confiscated, and have a fine of not less than one time but not more than three times illegal income imposed, or have a fine of not less than 50,000 yuan but not more than 300,000 yuan imposed if there is no illegal income; the senior management employees of the banking institution who are directly responsible shall be given disciplinary sanctions ranging from removal from their posts to dismissal.

　　Article 8 Banking institution may not make sham capital contributions or surreptitiously withdraw contributed capital.

　　A banking institution making a sham capital contribution or surreptitiously withdrawing its capital contributions shall be ordered to suspend businesses and carry out rectification and fined not less than five percent but not more than ten percent of the amount of the sham capital contribution or the surreptitiously withdrawn capital contribution. The banking institution's senior management employees directly responsible shall be subjected to the disciplinary sanction of dismissal, and the other persons in charge who are directly responsible and other directly responsible persons shall be subjected to disciplinary sanctions ranging from recording of a demerit to dismissal. If the case is serious, the banking institution's permit to conduct banking businesses shall be revoked. If the criminal offence of making sham capital contributions, surreptitiously withdrawing capital contributions or another criminal offence is constituted, criminal liability shall be investigated according to law.

　　Article 9 Banking institution may not engage in financial business activities out of the business scope approved by the People's Bank of China.

　　If a banking institution, in engaging in financial business activities, exceeds the business scope approved by the People's Bank of China, it shall be given a warning, and its illegal income shall be confiscated; in addition, it shall be imposed a fine of not less than 1 time and not more than 5 times the illegal income or, if there is no illegal income, a fine of not less than 100,000 yuan but not more than 500,000 yuan; The senior management employees of the banking institution directly responsible shall be subjected to discipl

inary sanctions ranging from removal from their posts to dismissal; and the other persons in charge who are directly responsible and other directly responsible persons shall be subjected to disciplinary sanctions ranging from recording of a demerit to dismissal; if the circumstances are serious, the banking institution shall be ordered to suspend businesses and carry out rectification or its permit to conduct banking businesses shall be revoked; if the criminal offence of illegal operation or another criminal offence is constituted, criminal liability shall be investigated according to law.

　　Article 10 Representative offices of banking institutions may not engage in banking businesses.

　　If a representative office of a banking institution engages in banking business, it shall be given a warning and its illegal income shall be confiscated; in addition, it shall be subjected to a fine of not less than 1 time but not more than 3 times the illegal income or, if there is no illegal income, a fine of not less than 50,000 yuan but not more than 300,000 yuan. The senior management employees of the banking institution directly responsible shall be subjected to disciplinary sanctions ranging from removal from their posts to dismissal, and the other persons in charge who are directly responsible and other directly responsible persons shall be subjected to disciplinary sanctions ranging from demotion to being dismissal; if the circumstances are serious, the representative office shall be closed.

　　Article 11 Banking institutions may not engage in off-the-books businesses in any of the following forms:

　　(1) in carrying out business such as deposit or lending business, failing to book or register the same in accordance with the accounting system, or failing to reflect the same in its accounting statements;

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