China Banking & Insurance Regulator Fined 5 Banks $55.7 Million for Misappropriation of Loan Funds, Illegal Income, False Data, Non-Compliance in Wealth Management Business, 5 Banks are Standard Chartered, China Construction Bank, Bank of China, China Minsheng Bank & Bohai Bank
25th February 2023 | Hong Kong
China regulator China Banking & Insurance Regulatory Commission (CBIRC) has fined 5 banks (Standard Chartered, China Construction Bank, Bank of China, China Minsheng Bank & Bohai Bank) a total of $55.7 million (CNY 387.8 million) for multiple irregularities including misappropriation of loan funds, illegal income, false data, and non-compliance in Wealth Management business. On China Construction Bank & Standard Chartered China: “On-site inspections on the effectiveness of risk management and internal control conducted by China Construction Bank and Standard Chartered China found that the above-mentioned institutions had a number of violations of laws and regulations, such as inconsistent service charges, serious violations of prudent management rules in loan management, and non-compliant investment operations in wealth management business. The China Banking and Insurance Regulatory Commission confiscated illegal income and imposed a fine of 73.415626 million yuan on the head office of China Construction Bank, fined its branches 125.5 million yuan, and imposed administrative penalties on 9 responsible persons respectively; 10,000 yuan, and a fine of 13.4 million yuan was imposed on the branches.” On Bank of China, Minsheng Bank, Bohai Bank: “The special on-site inspection of Bank of China, Minsheng Bank, and Bohai Bank to support the implementation of major policies for private enterprises and small and micro enterprises found that the above-mentioned institutions had misappropriation of loan funds, untrue statistical data, and irregular review procedures for major related transactions. Violations of laws and regulations. The China Banking and Insurance Regulatory Commission fined the head office of Bank of China 16 million yuan, fined the branch offices 16.8 million yuan, and issued warnings to two responsible persons respectively; confiscated the illegal income and imposed a fine of 66.72462 million yuan on the head office of Minsheng Bank, and fined the branch offices 23 million yuan , and gave warnings to two responsible persons respectively; the head office of Bohai Bank was fined 4.3 million yuan, the branches were fined 12.3 million yuan, and one responsible person was warned.” See statement below | Original statement in Chinese
” China Banking & Insurance Regulator Fined 5 Banks $55.7 Million for Misappropriation of Loan Funds, Illegal Income, False Data, Non-Compliance in Wealth Management Business, 5 Banks are Standard Chartered, China Construction Bank, Bank of China, China Minsheng Bank & Bohai Bank “
China Banking & Insurance Regulatory Commission Statement
17th Feb 2023 | Google Translate | Original statement in Chinese
The China Banking and Insurance Regulatory Commission investigated and dealt with violations of laws and regulations by 5 financial institutions in accordance with the law
Recently, the China Banking and Insurance Regulatory Commission has seriously investigated and dealt with a number of violations of laws and regulations, including Bank of China Co., Ltd. (hereinafter referred to as Bank of China), China Minsheng Bank Co., Ltd. Five financial institutions including China Construction Bank Corporation (hereinafter referred to as CCB) and Standard Chartered Bank (China) Co., Ltd. (hereinafter referred to as Standard Chartered China) and relevant responsible personnel made administrative punishment decisions according to law, and a total of 387,899,646 yuan was fined and confiscated.
Among them, the special on-site inspection of Bank of China, Minsheng Bank, and Bohai Bank to support the implementation of major policies for private enterprises and small and micro enterprises found that the above-mentioned institutions had misappropriation of loan funds, untrue statistical data, and irregular review procedures for major related transactions. Violations of laws and regulations. The China Banking and Insurance Regulatory Commission fined the head office of Bank of China 16 million yuan, fined the branch offices 16.8 million yuan, and issued warnings to two responsible persons respectively; confiscated the illegal income and imposed a fine of 66.72462 million yuan on the head office of Minsheng Bank, and fined the branch offices 23 million yuan , and gave warnings to two responsible persons respectively; the head office of Bohai Bank was fined 4.3 million yuan, the branches were fined 12.3 million yuan, and one responsible person was warned.
On-site inspections on the effectiveness of risk management and internal control conducted by China Construction Bank and Standard Chartered China found that the above-mentioned institutions had a number of violations of laws and regulations, such as inconsistent service charges, serious violations of prudent management rules in loan management, and non-compliant investment operations in wealth management business. The China Banking and Insurance Regulatory Commission confiscated illegal income and imposed a fine of 73.415626 million yuan on the head office of China Construction Bank, fined its branches 125.5 million yuan, and imposed administrative penalties on 9 responsible persons respectively; 10,000 yuan, and a fine of 13.4 million yuan was imposed on the branches.
In the next step, the China Banking and Insurance Regulatory Commission will resolutely follow the decisions and deployments of the Party Central Committee and the State Council, strictly implement administrative penalties in accordance with the law, enforce market discipline, standardize market order, safeguard the legitimate rights and interests of financial consumers, and urge banking and insurance institutions to operate in compliance and develop steadily, so as to help financial institutions Serving the real economy and firmly guarding against the bottom line of systemic financial risks.
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