(Announced by Order No. 7 of 2024 of the State Administration of Financial Supervision and Administration on December 25, 2024, effective from March 1, 2025)
CHAPTER I GENERAL PROVISIONS
Article 1: In order to enhance the legal and compliant operational capabilities of financial institutions, these Measures are formulated in accordance with laws and regulations such as the Banking Supervision and Administration Law of the People's Republic of China, the Commercial Bank Law of the People's Republic of China, the Insurance Law of the People's Republic of China, and the Trust Law of the People's Republic of China.
Article 2: Policy banks, commercial banks, financial asset management companies, enterprise group finance companies, financial leasing companies, automobile finance companies, consumer finance companies, currency brokerage companies, trust companies, wealth management companies, financial asset investment companies, insurance companies (including reinsurance companies), insurance asset management companies, insurance group (holding) companies, mutual insurance organizations and other institutions (hereinafter referred to as financial institutions) that are regulated by the State Administration of Financial Supervision and Administration and its dispatched institutions in accordance with the law shall be subject to these Measures.
Article 3: Compliance referred to in these Measures refers to the compliance norms formulated by financial institutions in accordance with laws, administrative regulations, departmental rules and normative documents, as well as the internal norms formulated by financial institutions to implement regulatory requirements (hereinafter collectively referred to as compliance norms).
The compliance management referred to in these Measures refers to the management activities carried out by financial institutions with the aim of ensuring compliance with regulations and effectively preventing compliance risks, guided by the improvement of legal and compliant business management level, and targeting business management behavior and employee performance behavior, including establishing compliance systems, improving operational mechanisms, cultivating compliance culture, and strengthening supervision and accountability.
The compliance risk referred to in these Measures refers to the possibility that financial institutions or their employees may bear criminal, administrative, civil legal liabilities, property losses, reputation losses, and other negative impacts due to violations of compliance norms in their business management or employee performance.
The compliance management department referred to in these Measures refers to the internal department established by financial institutions that takes the lead in assuming compliance management responsibilities. If financial institutions set up multiple departments with non conflicting responsibilities to jointly undertake compliance management responsibilities, they should clarify the leading department for compliance management responsibilities.
Article 4: Party organizations in state-owned financial institutions shall fully exert their leadership role, organically combine Party leadership with corporate governance, and support financial institutions in exercising their powers in accordance with the law. Party organizations in non-public financial institutions should guide and supervise financial institutions to implement the Party's policies, comply with national laws and regulations, safeguard the legitimate rights and interests of all parties, and promote the healthy development of financial institutions.
Article 5: Compliance management of financial institutions shall follow the following principles:
（1） Compliance with laws and regulations. Strictly implement laws, regulations, and various regulatory provisions, and regard lawful and compliant operations as the bottom line and red line that financial institutions must adhere to in all their activities.
（2） Comprehensive coverage. Integrate compliance requirements throughout the entire process of decision-making, execution, supervision, feedback, etc., covering various fields and links, and implementing them in all departments, institutions, positions, and all employees.
（3） Clear rights and responsibilities. Clarify the compliance management framework, implement the main responsibilities of business and functional departments, the management responsibilities of compliance management departments, and the supervision responsibilities of internal audit departments, and achieve organic coordination and effective connection.
（4） Practical and efficient. Continuously improve the compliance management system that matches the financial business and personnel scale of our institution, strengthen the management of key areas, key personnel, and important businesses, fully utilize digital, intelligent and other means, and continuously improve the efficiency of compliance management.
Article 6: The State Administration of Financial Supervision and Administration and its dispatched agencies shall supervise and manage the compliance management of financial institutions in accordance with the law.
The self regulatory organizations of the banking and insurance industries shall formulate implementation rules in accordance with these Measures and implement self regulatory management of the compliance management of member units.
Chapter 2 Compliance Management Structure and Responsibilities
Article 7 Financial institutions shall establish compliance management systems, improve the organizational structure of compliance management in accordance with the requirements of "hierarchical management and hierarchical responsibility", clarify compliance management responsibilities, deepen compliance culture construction, and establish a sound compliance management system.
Article 8: The board of directors of financial institutions (including directors exercising board powers, the same below) is responsible for determining compliance management objectives and bears ultimate responsibility for the effectiveness of compliance management. Senior management personnel of financial institutions are responsible for implementing compliance management objectives and assuming leadership responsibility for the compliance of their supervisors or areas of responsibility.
Article 9: The main responsible persons of each department of financial institutions, as well as the main responsible persons of each branch and financial subsidiary at all levels included in the consolidated management (hereinafter referred to as the subordinate institutions), are responsible for implementing the compliance management objectives of their respective departments and institutions, and bear primary responsibility for the compliance management of their respective departments and institutions.
Article 10 Financial institutions shall deepen the construction of compliance culture, establish the concept of compliance starting from the top, proactive compliance by all staff, and value creation through compliance, create a compliance culture atmosphere of not daring to violate, not being able to violate, and not wanting to violate, and promote effective interaction between financial institutions' own compliance and external supervision.
Article 11: The board of directors of financial institutions shall perform the following compliance management responsibilities:
（1） Review and approve the basic system of compliance management;
（2） Deciding on the establishment of a compliance management department;
（3） Deciding on the appointment and dismissal of the Chief Compliance Officer, and establishing a direct communication mechanism with the Chief Compliance Officer;
（4） Deciding to dismiss senior management personnel who bear primary responsibility or leadership responsibility for major violations of laws and regulations or major compliance risks;
（5） Evaluate the effectiveness of compliance management and the level of compliance culture construction, and urge the resolution of major issues in compliance management and compliance culture construction;
（6） Other compliance management responsibilities.
The board of directors may establish a compliance committee or other specialized committees under the board of directors to perform compliance management related responsibilities.
Article 12: Senior management personnel of financial institutions shall perform the following compliance management responsibilities:
（1） Implement the establishment and functional requirements of the compliance management department, equip sufficient and appropriate compliance management personnel, and provide sufficient human, material, financial, technical support and guarantee for them to fulfill their responsibilities;
（2） Organize and promote the construction of compliance management systems, compliance reviews, compliance self inspections and checks, compliance risk monitoring and control, and compliance incident handling for supervisors or areas under their jurisdiction;
（3） Promptly report and rectify major illegal and irregular behaviors or major compliance risks, and supervise the implementation of accountability;
（4） Other compliance management responsibilities.
Article 13 Financial institutions shall establish a Chief Compliance Officer at their headquarters. The Chief Compliance Officer is a senior management personnel who is directly led by the Chairman and President (General Manager) of the institution and is accountable to the Board of Directors.
In principle, financial institutions should establish compliance officers in provincial or first level branches. Compliance officers are senior management personnel of the same level institutions and are directly led by the president (general manager) of the same level institutions.
The chief compliance officer and compliance officer of financial institutions shall obtain the qualification license of the State Administration of Financial Supervision and Administration or its dispatched institutions, except as otherwise provided in these Measures.
Article 14 Financial institutions may establish separate Chief Compliance Officers and Compliance Officers based on their own operating conditions, or they may be concurrently held by senior management personnel of financial institutions, provincial branches, or first level branches.
If the President (General Manager) of a financial institution concurrently serves as the Chief Compliance Officer, or if the President (General Manager) of a provincial-level or first level branch of a financial institution concurrently serves as the Compliance Officer, they are not subject to the employment requirements for Chief Compliance Officers or Compliance Officers as stipulated in these Measures and do not need to obtain a separate qualification permit.
Article 15: The Chief Compliance Officer and Compliance Officer shall not be responsible for managing the front-end business, finance, fund utilization, internal audit, and other departments of financial institutions that may conflict with compliance management responsibilities. Except for financial institution presidents (general managers) who also serve as chief compliance officers, provincial or first level branch presidents (general managers) who also serve as compliance officers.
Article 16: The Chief Compliance Officer shall, on the premise of meeting the basic qualifications for senior management positions of corresponding institutions set by the State Administration of Financial Supervision and Administration, also meet the following conditions:
（1） Bachelor's degree or above;
（2） Engaged in financial work for more than eight years and engaged in legal compliance work for more than three years, or engaged in legal compliance work for more than eight years and engaged in financial work for more than three years, or engaged in financial work for more than eight years and obtained a legal professional qualification certificate;
（3） Other conditions stipulated by the State Administration of Financial Supervision and Administration.
Article 17: Compliance officers shall, on the premise of meeting the basic qualifications for senior management positions in corresponding institutions set by the State Administration of Financial Supervision and Administration, also meet the following conditions:
（1） Bachelor's degree or above;
（2） Engaged in financial work for more than six years and engaged in legal compliance work for more than three years, or engaged in legal compliance work for more than six years and engaged in financial work for more than three years, or engaged in financial work for more than six years and obtained a legal professional qualification certificate;
（3） Other conditions stipulated by the State Administration of Financial Supervision and Administration.
Article 18: The Chief Compliance Officer shall have specific leadership responsibility for the compliance management of the institution and its employees, and shall perform the following compliance management duties:
（1） Responsible for the compliance management work of this institution, organizing and promoting the construction of the compliance management system, supervising the performance of the compliance management department and compliance positions, and organizing and promoting the strict implementation and effective implementation of compliance norms within the institution;
（2） Organize and promote the establishment of compliance management systems, compliance reviews, compliance inspections and evaluations, handling of major compliance incidents, compliance assessments, problem rectification, and team building to ensure the orderly operation of compliance management work;
（3） Regularly report to regulatory agencies as required;
（4） Other compliance management responsibilities.
Article 19: In case of significant changes in laws, administrative regulations, departmental rules, and normative documents, the Chief Compliance Officer shall promptly organize and supervise relevant departments and subordinate institutions to evaluate the impact of the changes on compliance management, revise and improve internal norms of the institution, and supervise their implementation.
Article 20: The Chief Compliance Officer shall organize the compliance management department to conduct compliance reviews on the development strategies, important internal standards, important new products and business plans, and major decision-making matters of financial institutions, and issue written compliance review opinions.
If the State Administration of Financial Supervision and Administration and its dispatched agencies require the Chief Compliance Officer to conduct compliance review on the application materials or reports submitted by financial institutions, the Chief Compliance Officer shall organize the review and sign the compliance review opinion on the application materials or reports. Other relevant senior management personnel shall be responsible for the authenticity, accuracy, and completeness of the basic facts and business data in the application materials or reports.
If the compliance review opinion of the Chief Compliance Officer is not adopted, financial institutions shall submit relevant matters to the board of directors for approval, and major matters shall be reported to regulatory authorities in a timely manner.
Article 21: The Chief Compliance Officer shall organize or require relevant internal departments to supervise and inspect the compliance of institutional operations and employee performance in accordance with the requirements of the State Administration of Financial Supervision and Administration and its dispatched institutions, as well as internal regulations of financial institutions. Internal departments and their employees of financial institutions should actively cooperate with the Chief Compliance Officer in carrying out their work.
Article 22: If the Chief Compliance Officer discovers that a financial institution or its employees have engaged in significant illegal or irregular behavior or significant compliance risks, they shall promptly report to the Board of Directors, Chairman, and President (General Manager), propose handling suggestions, and urge rectification. If the Chief Compliance Officer discovers that financial institutions and their employees have other illegal and irregular behaviors or compliance risks, they shall organize and supervise the institution to report, handle and rectify them in a timely manner in accordance with the internal compliance management procedures of the institution. The Chief Compliance Officer has the authority to propose to the Board of Directors, senior management, relevant departments, and subordinate agencies measures such as salary deductions, job adjustments, demotions, etc. for relevant responsible personnel, and to urge responsible agencies and personnel to rectify in a timely manner.
Major illegal and irregular behaviors or major compliance risks mainly include: significant fines or confiscation of significant illegal gains; Compliance risk events, legal disputes, criminal cases, etc. that cause or may cause significant property damage or reputational damage to the institution.
Article 23: If financial institutions have significant illegal or irregular behaviors or major compliance risks, they shall promptly report to the State Administration of Financial Supervision and Administration or its dispatched institutions. If the Chief Compliance Officer discovers that an institution has not reported as required, he/she shall urge the institution to report in a timely manner and may directly report to the State Administration of Financial Supervision or its dispatched institutions.
Article 24: The compliance officer of a provincial or first level branch of a financial institution shall be responsible for the compliance management of the institution and its employees at the same level, and their specific responsibilities shall be determined by the financial institution with reference to the duties of the Chief Compliance Officer.
Article 25: The Chief Compliance Officer and Compliance Officer shall promptly organize the handling of compliance management matters requested by the State Financial Supervision Administration and its dispatched agencies for investigation, track, supervise, and evaluate the implementation of regulatory opinions and requirements.
Article 26: When departments, subordinate institutions, and their employees of financial institutions discover major illegal or irregular behaviors or major compliance risks of their own institutions, they shall promptly and proactively report to the compliance management department of the institution at the same level. Establish a branch office for compliance officers, and the compliance management department shall promptly report to the compliance officer of the corresponding institution.
If the Chief Compliance Officer or Compliance Officer discovers that any department or subordinate institution has concealed or omitted major illegal or irregular behaviors or major compliance risks and hidden dangers, they shall implement a "one vote veto" on the responsible institution and relevant responsible persons in the internal compliance assessment of the institution, and shall not be evaluated for excellence or superiority, and shall promptly promote internal accountability.
Article 27: The headquarters of financial institutions, provincial or first level branches, and financial subsidiaries at all levels included in consolidated management shall, in principle, establish independent compliance management departments.
Financial institutions should establish compliance management departments in other branches according to their business scale, organizational structure, and compliance management needs. Other branches that do not have the conditions to establish a compliance management department should, in principle, establish compliance positions that meet the needs of their duties. If it is not possible to establish a compliance management department or compliance position, the compliance management department or position of the higher-level institution shall perform the compliance management responsibilities of the branch on behalf of it.
Article 28: The compliance management department of financial institutions shall take the lead in responsible for compliance management work and fulfill the following responsibilities:
（1） Formulate the basic compliance management system and annual compliance management plan for the institution, organize and coordinate various departments and subordinate institutions of the institution to formulate compliance management related systems, and promote their implementation;
（2） Provide legal and compliance support for institutional management activities, new product and business development, and other related matters. Review important internal standards of review agencies and promptly propose suggestions for formulation or revision;
（3） Lead the organization and implementation of compliance review, compliance inspection, evaluation and assessment, compliance risk monitoring, and compliance event handling, promoting the strict implementation of compliance standards;
（4） Organize or participate in the implementation of compliance assessments, hold accountable entities that violate compliance standards, and maintain daily compliance work contacts with regulatory agencies;
（5） Organize the cultivation of compliance culture, conduct compliance training, organize criminal crime prevention education, provide compliance consultation to employees, and promote all employees to comply with the code of conduct for compliance;
（6） Other responsibilities determined by the board of directors.
The specific responsibilities of compliance positions shall be determined by financial institutions in accordance with the provisions of the preceding paragraph.
Article 29: Overseas financial branches and subsidiaries of financial institutions shall comply with the laws, regulations, and regulatory requirements of the host country (region), and establish independent compliance management departments or compliance positions that meet the needs of their duties. They shall be responsible for identifying and preventing compliance risks and cultivating professional compliance talents based on factors such as overseas business, market conditions, relevant judicial laws and regulations, and law enforcement environment.
Article 30: The compliance management department of the headquarters of financial institutions shall be responsible to the Chief Compliance Officer and fulfill compliance management responsibilities in accordance with institutional regulations and arrangements made by the Chief Compliance Officer; The compliance management department of provincial or first level branches shall be responsible to the compliance officer of the same level institution, and shall fulfill compliance management responsibilities in accordance with the regulations of the same level institution and the arrangements of the compliance officer; The compliance management departments of subordinate institutions accept guidance and supervision from the higher-level compliance management departments.
Article 31: The compliance management department and compliance positions of financial institutions shall be independent of departments or positions that may conflict with the responsibilities of compliance management, such as front-end business, finance, fund utilization, internal audit departments, etc. The compliance management department and compliance positions shall not undertake other responsibilities that conflict with compliance management.
Article 32 Financial institutions shall provide full-time or part-time personnel engaged in compliance work for departments other than the compliance management department. Encourage and support financial institutions to establish mechanisms where the above-mentioned personnel are responsible to the same level compliance management department.
Article 33 Financial institutions shall incorporate the compliance management of various departments and subordinate institutions into a unified system, strengthen guidance and supervision of compliance positions in various departments and compliance management departments of subordinate institutions, clarify the compliance management matters reported by various departments and subordinate institutions to the headquarters of the institution, inspect the compliance of the operation and management of subordinate institutions and the performance of employees, and supervise the compliance management work of various departments and subordinate institutions to comply with compliance norms.
Article 34: Encourage financial institutions to implement vertical management of compliance management departments. Financial institutions that implement vertical management of compliance management departments shall have their subordinate compliance management departments accountable to the higher-level compliance management department and subject to management by the higher-level compliance management department.
Encourage the Chief Compliance Officer to coordinate the selection of compliance management personnel, business guidance, work reporting, assessment management, and nomination of compliance officers.
Article 35: The various business and functional departments of financial institutions, as well as their subordinate institutions, shall bear the main responsibility for compliance, be responsible for the strict implementation and effective implementation of compliance norms in their respective fields, and actively cooperate with the work of the compliance management department.
The compliance management department of financial institutions bears the responsibility of compliance management, organizing, coordinating, and promoting compliance management work among various departments and subordinate institutions.
The internal audit department of financial institutions bears the responsibility of compliance supervision, audits the compliance of institutional operations and management, and establishes an effective information exchange mechanism with the compliance management department.
Article 36: All employees of financial institutions shall comply with compliance norms related to their performance of duties, actively identify and control compliance risks in their performance of duties, actively cooperate with financial institutions and regulatory agencies to carry out compliance management, and take responsibility for the compliance of their performance of duties.
Chapter 3 Compliance Management Guarantee
Article 37 Financial institutions shall provide sufficient guarantees for the Chief Compliance Officer, Compliance Officer, and Compliance Management Department to perform their duties, and grant relevant personnel and departments the right to express negative opinions.
Shareholders, directors, and senior management personnel of financial institutions shall not violate their prescribed duties and procedures, interfere with the Chief Compliance Officer or Compliance Officer's lawful and compliant work.
Directors, senior management personnel, departments, subordinate institutions, and their employees of financial institutions shall support and cooperate with the work of the Chief Compliance Officer and Compliance Officer, Compliance Management Department, and Compliance Management Personnel, and shall not restrict or obstruct the Chief Compliance Officer and Compliance Officer, Compliance Management Department, and Compliance Management Personnel from performing their duties for any reason.
Article 38 Financial institutions shall equip their compliance management departments with sufficient compliance management personnel who possess professional knowledge and skills suitable for fulfilling compliance management responsibilities.
The compliance management department should mainly be composed of personnel with legal or economic and financial professional education backgrounds. Personnel who are engaged in legal compliance review of institutional contracts for the first time, as well as those who provide legal compliance opinions on major issues such as institutional restructuring, mergers and acquisitions, property rights transfer, bankruptcy reorganization, settlement, and liquidation, should generally have a legal professional background or pass the legal professional qualification examination.
Article 39: Each department and subordinate institution of financial institutions shall be equipped with full-time or part-time compliance management personnel that match the scale of their business and the difficulty of risk control.
Overseas financial branches and subsidiaries shall be equipped with compliance management personnel who are familiar with the laws and regulations of their respective jurisdictions and relevant banking and insurance businesses. Key countries and regions with high compliance risks should increase the number of dedicated compliance management personnel to effectively prevent and respond to compliance risks.
Article 40 Financial institutions shall ensure the independence of compliance officer reports, implement dual line reporting, mainly report to the Chief Compliance Officer, and report to the President (General Manager) of the institution at the same level.
Article 41 Financial institutions shall guarantee the Chief Compliance Officer, Compliance Officer, Compliance Management Department, and personnel the right to know and investigate necessary for the performance of their duties.
The Chief Compliance Officer and Compliance Officer have the right to participate in or attend relevant meetings, review and copy relevant documents and materials as needed to fulfill their duties. Financial institutions shall notify the Chief Compliance Officer in advance of important meetings such as board meetings and business decision-making meetings.
The Chief Compliance Officer and Compliance Officer have the authority to inquire and gather evidence from relevant departments or subordinate institutions as needed to fulfill their duties, require financial institution personnel to provide explanations on relevant matters, and seek information from external audit, legal services, and other intermediary agencies.
Article 42 Financial institutions shall safeguard the independence of their Chief Compliance Officer and Compliance Officer. If a decision is made to dismiss a Chief Compliance Officer or Compliance Officer, there shall be justifiable reasons.
Legitimate reasons include the Chief Compliance Officer, the Compliance Officer's own application, or being ordered to replace by the State Administration of Financial Supervision and Administration and its dispatched agencies, or having evidence to prove that they are unable to perform their duties normally or fail to fulfill their duties diligently.
Article 43 Financial institutions shall establish a compensation management mechanism for chief compliance officers, compliance officers, and compliance management personnel. If the Chief Compliance Officer is competent in their work, their annual salary income should generally not be lower than the average level of senior management personnel with the same qualifications (same rank, same assessment results). Compliance officers and compliance management personnel who are competent in their work shall have an annual salary income that is generally not lower than the average level of personnel with the same qualifications (same job type, same rank, and same assessment results) in their respective institutions. If the state has other regulations on the salary standards of state-owned financial enterprises, follow those regulations.
Financial institutions shall establish an assessment management system for chief compliance officers, compliance officers, compliance management departments, and full-time compliance management personnel. Except for the main person in charge of the institution, they shall not adopt assessment methods that are not conducive to compliance independence, such as evaluations by senior management personnel who are not in charge of compliance management departments, evaluations by other departments, or evaluations based on the business performance of business departments; Compliance work that requires joint efforts from various departments shall not be separately used as assessment indicators for the compliance management department.
Article 44 Financial institutions shall establish a compliance work assessment system, which shall include the quality and effectiveness of compliance management of internal departments and subordinate institutions in the assessment, and shall include the compliance management situation in the annual comprehensive assessment of the heads of subordinate institutions.
Financial institutions should strengthen the application of assessment results and use compliance responsibilities as an important basis for employee assessment, personnel appointment, and evaluation.
Article 45 Financial institutions shall strengthen the informatization construction of compliance management, and may use information technology means to embed compliance requirements and business control measures into processes, strengthen compliance review for key nodes, and enhance process control.
Article 46: Financial institutions shall establish compliance training mechanisms, develop annual compliance training plans, increase training efforts for institution employees, make compliance management a mandatory part of business training for newly appointed directors and senior management personnel, key compliance risk positions, and new employees, and continuously enhance employees' compliance awareness.
Chapter 4 Supervision and Management and Legal Responsibility
Article 47: The State Administration of Financial Supervision and Administration and its dispatched agencies shall supervise and inspect the compliance management work of financial institutions, and use the progress of compliance management work of financial institutions as an important basis for comprehensive rating.
Article 48: The State Administration of Financial Supervision and Administration and its dispatched institutions may, as necessary to fulfill their duties, conduct regulatory talks with directors and senior management personnel of financial institutions, requiring them to provide explanations on major issues related to compliance management of financial institutions.
Article 49: If a financial institution fails to report major illegal or irregular behaviors or major compliance risks in a timely manner, or fails to provide compliance management materials as required, it shall be dealt with by the State Administration of Financial Supervision or its dispatched institutions in accordance with relevant provisions such as the Banking Supervision and Administration Law of the People's Republic of China, the Commercial Bank Law of the People's Republic of China, and the Insurance Law of the People's Republic of China.
Article 50: If a financial institution engages in illegal or irregular behavior, the State Administration for Financial Supervision and Administration or its dispatched institutions shall order it to rectify within a specified period of time, and may explicitly require the financial institution to establish a full-time Chief Compliance Officer or Compliance Officer, strengthen the staffing of compliance management personnel, and collect the compliance management responsibilities of the subordinate responsible institutions of the financial institution. If a financial institution fails to complete the rectification within the prescribed time limit, the State Administration of Financial Supervision and Administration or its dispatched institutions may impose administrative penalties or other regulatory measures based on the severity of the circumstances.
Article 51: If directors or senior management personnel fail to fulfill their duties diligently, resulting in significant illegal or irregular behavior or significant compliance risks in financial institutions, the State Administration of Financial Supervision and Administration or its dispatched institutions shall take administrative penalties or other regulatory measures in accordance with relevant laws and regulations; Those suspected of committing crimes shall be transferred to the supervisory or public security organs in accordance with the law.
Article 52: If financial institutions and their staff violate the provisions of these Measures and have legal responsibilities stipulated by laws and administrative regulations, the provisions of laws and administrative regulations shall apply; If there are no provisions in laws and administrative regulations, the State Administration of Financial Supervision and Administration and its dispatched agencies shall, based on the severity of the circumstances, impose warnings, criticism notices, and fines of up to 100000 yuan on financial institutions and their directly responsible directors, senior management personnel, and other directly responsible personnel; Those who endanger financial security and have harmful consequences shall be given a warning, criticized in a public notice, and fined up to 200000 yuan.
Article 53: If the Chief Compliance Officer or Compliance Officer violates the provisions of these Measures and the circumstances are serious, resulting in significant illegal or irregular behavior or significant compliance risks for financial institutions, the State Administration for Financial Regulation and its dispatched institutions may, in addition to imposing administrative penalties or other regulatory measures in accordance with the law, also order financial institutions to adjust their Chief Compliance Officer or Compliance Officer in accordance with the law; Those suspected of committing crimes shall be transferred to the supervisory or public security organs in accordance with the law.
Article 54: Financial institutions, through effective compliance management, proactively discover illegal and irregular behaviors or compliance risks, actively and properly handle them, implement accountability, improve internal control systems and business processes. If they meet the legal requirements, the State Administration of Financial Supervision and Administration and its dispatched institutions may handle them leniently or mitigated in accordance with the law; If the circumstances are minor and the illegal and irregular behavior is corrected in a timely manner, without causing any harmful consequences, or only violating the internal regulations of financial institutions, no responsibility will be pursued.
For the illegal and irregular behavior of financial institutions, if the Chief Compliance Officer or Compliance Officer, Compliance Management Department, or Compliance Management Personnel have fulfilled their responsibilities in accordance with the provisions of these Measures, they shall not be held accountable.
CHAPTER V SUPPLEMENTARY PROVISIONS
Article 55 Financial holding companies, rural cooperative banks, rural credit cooperatives, foreign bank branches, foreign reinsurance company branches, and other financial institutions supervised by the State Administration of Financial Supervision and Administration and its dispatched agencies shall refer to the industry characteristics and regulatory requirements for implementation.
Article 56 Prior to the implementation of these Measures, the chief compliance officer, compliance director, compliance officer, and general legal advisor who have been appointed by financial institutions and their provincial or first level branches as senior management personnel may perform the duties of the chief compliance officer and compliance officer as stipulated in these Measures. Before the above-mentioned personnel are transferred, they are not subject to the employment conditions stipulated in these Measures and do not need to obtain the qualifications approved by the State Administration of Financial Supervision and Administration or its dispatched institutions again.
Article 57: The terms "above" and "below" referred to in these Measures include this number.
Article 58: These Measures shall be interpreted by the State Administration of Financial Supervision and Administration, and shall come into effect on March 1, 2025, with a transitional period of one year from the date of implementation of these Measures. Those who do not comply with the provisions of these measures shall complete rectification during the transition period. The Guidelines for Compliance Risk Management of Commercial Banks (CBIRC [2006] No. 76), the Measures for Compliance Management of Insurance Companies (CBIRC [2016] No. 116), and the Notice of the China Insurance Regulatory Commission on Further Strengthening Compliance Management of Insurance Companies (CBIRC [2016] No. 38) are simultaneously abolished. If there is any inconsistency between the regulations and normative documents of other departments and this method, this method shall prevail.
Attachment:
The State Administration of Financial Supervision and Administration of China has issued the "Compliance Management Measures for Financial Institutions"
https://www.nfra.gov.cn/cn/view/pages/ItemDetail.html?docId=1192057&itemId=915&generaltype=0
Officials from relevant departments of the State Administration of Financial Supervision and Administration answer questions from reporters on the "Compliance Management Measures for Financial Institutions"
https://www.nfra.gov.cn/cn/view/pages/ItemDetail.html?docId=1192056&itemId=915&generaltype=0
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