Public Consultation on the Measures for the Management of Seriously Untrustworthy Entities in the field of People's Bank of China

On May 15th, the People's Bank of China issued a notice seeking public comments on the "Administrative Measures for Managing the List of Seriously Untrustworthy Entities in the People's Bank of China's Management Field (Draft for Comment)." The "Administrative Measures" consist of twenty-four articles, mainly including the following contents: First, strictly define the criteria for inclusion in the list of seriously untrustworthy entities. Institutions and individuals in the fields of bills, payments, RMB circulation, credit reporting, etc. managed by the People's Bank of China who have engaged in behaviors explicitly prohibited by laws and regulations, seriously disrupt financial market order, and infringe upon the legitimate rights and interests of the people, with particularly serious circumstances and exceptionally adverse effects, shall be included in the list of seriously untrustworthy entities. Second, standardize punitive measures for seriously untrustworthy entities. Institutions or individuals listed in the list of seriously untrustworthy entities may be subject to measures such as increased regulatory scrutiny, sharing of relevant information with relevant departments, public disclosure of list information, and consideration for important factors in reviewing administrative permits, qualifications, government procurement projects, and engineering bidding. Third, encourage seriously untrustworthy entities to actively rectify their untrustworthy behaviors and restore their credit. The original text is as follows: Drafting Instructions for the "Administrative Measures for Managing the List of Seriously Untrustworthy Entities in the People's Bank of China's Management Field (Draft for Comment)" The "Opinions of the Central Committee of the Communist Party of China and the State Council on Improving the Social Credit System" clearly stipulate that industry regulatory authorities should specify the criteria and procedures for inclusion and removal of seriously untrustworthy entities in departmental regulations. In order to implement the decisions and arrangements of the Central Committee of the Party and the State Council, strictly regulate the criteria and procedures for identifying seriously untrustworthy entities, the People's Bank of China has drafted the "Administrative Measures for Managing the List of Seriously Untrustworthy Entities in the People's Bank of China's Management Field (Draft for Comment)" (referred to as the "Administrative Measures" below), aiming to legally strengthen the restraint and punishment of seriously untrustworthy behaviors in the financial field, encourage seriously untrustworthy entities to actively rectify their untrustworthy behaviors, promote the creation of a credit environment in the financial field of "trustworthiness incentives and untrustworthiness punishments," and further improve the construction of a social credit system in the financial field. The "Administrative Measures" consist of twenty-four articles, mainly including the following contents: First, strictly define the criteria for inclusion in the list of seriously untrustworthy entities. Institutions and individuals in the fields of bills, payments, RMB circulation, credit reporting, etc. managed by the People's Bank of China who have engaged in behaviors explicitly prohibited by laws and regulations, seriously disrupt financial market order, and infringe upon the legitimate rights and interests of the people, with particularly serious circumstances and exceptionally adverse effects, shall be included in the list of seriously untrustworthy entities. Second, standardize punitive measures for seriously untrustworthy entities. Institutions or individuals listed in the list of seriously untrustworthy entities may be subject to measures such as increased regulatory scrutiny, sharing of relevant information with relevant departments, public disclosure of list information, and consideration for important factors in reviewing administrative permits, qualifications, government procurement projects, and engineering bidding. Third, encourage seriously untrustworthy entities to actively rectify their untrustworthy behaviors and restore their credit. The management period for the list of seriously untrustworthy entities is 3 years, and entities will be removed after the management period expires. After being listed in the list of seriously untrustworthy entities for 12 months, if the untrustworthy entity has fulfilled the obligations specified in administrative penalties or judicial decisions, effectively controlled the harmful effects and adverse impacts, and no longer engaged in seriously untrustworthy behaviors, they can apply for removal from the list of seriously untrustworthy entities. This article is compiled from the People's Bank of China, edited by GMTEight: Chen Wenfang.