Chinese Banks Suspend Cooperation with Third Party Data Providers Following Release of New Privacy Rules
The draft version of new rules on the collection of personal financial information moot additional prohibitions on various forms of data collection.
The Chinese central bank has already issued its initial draft of the “Personal Financial Information (Data) Protection Trial Measures (Initial Draft)” (个人金融信息（数据）保护试行办法（初稿）) to various banks in China for the solicitation of opinions.
Domestic observers have highlighted the introduction of new articles prohibiting various forms of data collection, including:
- Article 12, which stipulates that financial institutions “cannot collect personal financial information from third parties that illegally engage in personal credit operations;”
- Article 18, which stipulates that “financial institutions cannot use the method of ‘summary authorisation’ to obtain the consent of information entities to the collection, processing usage and external provision of their personal financial information.”
While the official version of the measures has yet to be released, according to a report from Sina the draft version has already prompted some Chinese banks to suspend cooperative relations with certain third party data-providers.