Chinese Bank Inspectors Allowed to Collect Electronic Data as Evidence for Administrative Penalties


China’s financial regulators will significantly increase some of their investigatory powers starting from the month of August.

The “China Banking and Insurance Regulatory Commission Administrative Penalty Measures” (中国银保监会行政处罚办法) comes into effect on 1 August, and outlines an expansion in the range of material that authorities can collect for use as evidence for administrative penalties.

Article 36 of the Measures stipulates that “investors may directly collect data from computer databases, and may also use methods including transfer, calculation and decomposition to form new electronic data.”

The Measures further stipulate that hearings material and electronic data may both be used as evidence when making decisions concerning administrative punishments.

Under the new Measures the parties mentioned in advance notices of administrative punishments will also have the right to demand that hearings be held.

On the same date the amended version of the “Implementation Bylaws for the Measures on Incentivising the Reporting of Illegal and Irregular Payments and Settlement Conduct” (支付结算违法违规行为举报奖励办法实施细则) will come into effect.

The Bylaws stipulate that any entities or individuals who report illegal conduct to the Payment & Clearing Association of China are entitled to the collection of awards.

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