The People's Bank of China plans to standardize disciplinary measures against seriously dishonest entities

The People's Bank of China recently released the "Measures for the Management of the List of Seriously Dishonest Entities in the People's Bank of China Management Field (Draft for Comments)," which strictly stipulates the conditions for including entities on the list of seriously dishonest entities, and strengthens restrictions and penalties for dishonest behaviors.
The draft for comments proposes that in the fields managed by the People's Bank of China, such as bills, payments, Renminbi circulation, and credit reporting, entities and individuals who engage in behaviors explicitly prohibited by laws and regulations, severely disrupt the financial market order, or infringe upon the legitimate rights and interests of the public—especially in serious and particularly harmful circumstances—should be included on the list of seriously dishonest entities.
According to the draft for comments, for institutions or individuals included on the list of seriously dishonest entities, measures such as incorporating them into key management targets, increasing the frequency of law enforcement inspections, sharing relevant information with relevant departments, and publicly disclosing the list information can be taken. These measures serve as important considerations when reviewing administrative licenses, qualifications, credentials, entrusting government procurement projects, or bidding for projects.
In addition, the draft encourages seriously dishonest entities to actively correct their dishonest behaviors and carry out credit repair. According to the regulations, the management period for the list of seriously dishonest entities is three years, after which they are removed from the list.
After being on the list for 12 months, if the dishonest entity has fulfilled the obligations stipulated in administrative penalty decisions or judicial judgments, and the spillover effects of harm and adverse impacts have been effectively controlled, and no further serious dishonest behaviors have occurred, they can apply for removal from the list of seriously dishonest entities.
A relevant person from the People's Bank of China stated that the bank will strengthen restrictions and penalties on serious dishonest behaviors in the financial field in accordance with laws and regulations, encourage seriously dishonest entities to actively correct their behaviors, promote the creation of a credit environment in the financial sector characterized by "trust incentives and dishonesty penalties," and further improve the construction of the social credit system in the financial field. (Xinhua News Agency)
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