Financial Crime World

Chinese Courts Crack Down on Financial and Cyber Crimes Ahead of National Anniversary

During the ongoing session of the National People’s Congress, China reaffirmed its commitment to maintaining national security and public order as the country celebrates the 75th anniversary of the founding of the People’s Republic of China. This year, there was a significant increase in criminal cases related to:

  1. Phone and internet scams
  2. Financial fraud
  3. Cybercrime

Cybercrimes and Telecoms Fraud

  • The Supreme People’s Procuratorate announced a total of 323,000 individuals were implicated in computer crimes.
  • This figure represents a 36.2% surge from the previous year.
  • Telecoms fraud also saw a notable rise, with approximately 51,000 indictments, a 66.9% increase from the previous year.
  • This spike in telecoms fraud may be linked to the repatriation of thousands of individuals from neighboring countries, aimed at combating cross-border computer fraud.

Arrests and Indictments

  • Arrests rose by 47% to 726,000, and indictments grew by 17.3% to 168,800.
  • Court reports also highlighted efforts to address organized crime, illegal gambling, bribery, and corruption.

Focus on Financial Crimes

  • China’s top courts vowed to intensify actions against financial crimes, focusing on:
    • Organized crime
    • Telecoms and internet fraud
    • Cross-border gambling
    • Graft
  • Known cases included fraudulent IPOs, insider trading, and market manipulation.

Updating Laws

  • As part of China’s mission to modernize its legal system:
    • The first individual bankruptcy case in Chinese court history was heard.
    • Corporate bankruptcies increased nearly 70% from the previous year.
    • 42 criminal cases related to private property ownership had their verdicts reversed.

Environmental Regulations

  • The Supreme People’s Court reported a decrease in pollution-related cases by 11.5%.
  • New laws were proposed, including:
    • Financial Stability Law
    • Emergency Management Law
    • Hazardous Chemicals Law
    • Energy and Atomic Energy Laws
  • Existing laws on money laundering, bankruptcy, unfair competition, mineral resources, and cybersecurity were set for revision.

Greater Transparency

  • The Supreme People’s Court report featured approximately 20 pages of charts, graphs, and illustrations, signaling a new effort to address financial and cyber crimes with greater transparency and clarity.