Title: Chinese Prosecutors Crackdown on Financial Crimes: Over 340 Charged in 2023 🇨🇺❌
Key Points
- Chinese prosecutors charged over 340 individuals from the finance sector in 2023, a 35% increase from the previous year.
- Prosecutors focused on “preventing and defusing economic and financial risks,” and eradicating corruption in the financial sector, securities industry, and financial oversight departments.
- Almost 300 people were charged for crimes related to the securities sector, showing a 9.2% yearly increase.
- The crackdown is in line with President Xi Jinping’s call to prevent and defuse “major security risks,” as China intensifies regulatory efforts in the financial sector.
Chinese Prosecutors Crackdown on Financial Crimes 🔒💰
In Beijing, China, Chinese prosecutors intensified their efforts against financial crimes in 2023, charging over 340 individuals from the finance sector with corruption, dereliction of duty, and insider trading, marking a 35% increase from 2022, according to the Supreme People’s Procuratorate (SPP) 1.
Focus on Financial Sector Reforms 📈
The SPP’s website stated that in the past year, Chinese prosecutors were determined to “prevent and defuse economic and financial risks.” They collaborated with the Ministry of Public Security to address major fraud cases and private equity fund-related crimes. Almost 300 people were charged for crimes related to the securities sector, showing a 9.2% yearly increase 1.
Prosecutors targeted the eradication of corruption within:
- The financial sector
- The securities industry
- Financial oversight departments
Ongoing Efforts against Financial Crimes 🔎
The ongoing crackdown on financial crimes is in line with President Xi Jinping’s call to prevent and defuse “major security risks.” Xi delivered these instructions during the annual national conference for the country’s zhengfa departments in January 2024 1. Xi’s plea came amidst China’s weeklong annual parliamentary meetings, known as the “two sessions,” which concluded on Monday 1.
Combating Financial Risks 💔
SPP chief Ying Yong discussed his agency’s efforts during the past year at the National People’s Congress, stating that over 27,000 individuals were charged for financial fraud and financial management irregularities. Among them, 18,000 people were accused of fundraising fraud and illegally taking public deposits 1. Ying vowed to strictly punish financial crimes to ensure the “high-quality development of the financial sector” in 2024.
Intensified Regulatory Efforts 🇨🇸
Over the past year, China has intensified its regulatory efforts in the financial sector. The Central Financial Commission was established in March 2023, with the Communist Party now acting as the top financial regulator 1. Xi also stressed the importance of addressing financial risks during the central financial work conference held in late October 2023 1. The SPP followed up by releasing guidelines for public prosecutors on how to tackle financial crimes in December 2023 1.