Tougher Penalties for Financial Crimes in China

China’s top court has announced plans to impose stricter punishments for financial crimes, including illegal fund-raising, market manipulation, and money laundering. This move comes as part of efforts to maintain national economic and financial security.

Increased Penalties for Financial Crimes

According to Chief Judge Ma Yan of the Supreme People’s Court, severe penalties will be imposed on those found guilty of these crimes. “We will formulate, revise and improve criminal judicial interpretations for money laundering, insider trading, and leaking inside information, among others,” Ma said in a news conference.

Common Types of Financial Crimes

One of the most common types of financial crime has been illegal fund-raising, which has involved huge sums and numerous participants. “These crimes have seriously disrupted the financial management order and endangered China’s financial security,” Ma said.

Types of Financial Crimes:

• Illegal fund-raising • Market manipulation • Insider trading • Leaking inside information

Rise in Securities Fraud Cases

China has also seen a rise in cases of securities fraud, including market manipulation and insider trading. Between 2017 and August 2021, over 108,700 people were punished for these crimes.

Statistics:

• 117,100 criminal cases involving financial fraud adjudicated between 2017 and August 2022 • 186,300 people penalized for financial crimes in the same period

Combating Money Laundering

The top court has enhanced measures to combat money laundering, including a three-year action plan initiated by the People’s Bank of China in January 2022. The plan aims to coordinate efforts among departments to crack down on all kinds of money laundering.

Money Laundering Statistics:

• Over 1,154 first-instance criminal cases involving money laundering adjudicated in the past five years