China Cracks Down on Financial Crimes: Supreme Court Vows Tougher Penalties

Cracking Down on Financial Crimes: China’s Top Court Pledges Stricter Penalties

In a move to maintain economic and financial security, China’s top court has announced plans to impose stricter penalties for financial crimes. The Supreme People’s Court has vowed to prevent major financial risks and punish those involved in illegal fund-raising, market manipulation, insider trading, and money laundering.

Statistics Highlighting the Severity of Financial Crimes

• Between 2017 and August 2022, courts nationwide adjudicated over 117,000 criminal cases involving financial fraud.
• A total of 186,300 people were penalized for these crimes.
• Many of these cases involved illegal fund-raising, which posed a significant threat to China’s financial management order.

Notable Cases and Efforts to Combat Financial Crimes

• Xu Xiang, general manager of Shanghai-based company Zexi Investment, was sentenced to five-and-a-half years in prison for stock market manipulation.
• The People’s Bank of China initiated a three-year action plan to tackle money laundering in January 2022.

Measures to Prevent Money Laundering and Ensure Law Implementation

• Courts across China have adjudicated over 1,154 first-instance criminal cases involving money laundering in the past five years.
• The top court has vowed to formulate and revise judicial interpretations for key financial crimes, including money laundering, insider trading, and leaking inside information.

Broader Efforts to Promote Capital Market Development

The crackdown on financial crimes is part of China’s broader efforts to promote the high-quality development of its capital market and maintain national economic and financial security. An official document jointly issued by the Communist Party of China Central Committee and the State Council calls for a crackdown on illegal activities in the securities market and the promotion of market integrity.

Severe Consequences for Those Engaging in Financial Crimes

As China continues to tighten its grip on financial crimes, the consequences for individuals and businesses involved will be severe. The Supreme People’s Court has made it clear that those who engage in these illicit activities will face tougher penalties, highlighting the importance of compliance with financial regulations in China.