(adopted at the 14th Meeting of the Standing Committee of the Eighth National People's Congress on June 30, 1995, the Order No. 52of President of the People's Republic of China)
The Decision of the Standing Committee of the National People's Congress on Punishment of Crimes of Disrupting Financial Order, as adopted at the 14th Meeting of the Standing Committee of the Eighth National People's Congress on June 30, 1995, is hereby issued, and effective as of the date of promulgation.
Jiang Zemin, President of the People's Republic of China
June 30, 1995
With a view to punishing crimes of disrupting financial order such as counterfeiting currencies and committing fraud by means of financial bills, letters of credit or illegal fund-raising, the following decision is made:
1. Whoever counterfeits currencies shall be sentenced to fixed-term imprisonment of not less than three years and not more than ten years and shall also be inputted with a fine of not less than 50,000 yuan and not more than 500,000 yuan. Whoever is found to be in any of the following situations shall be sentenced to fixed-term imprisonment of not less than ten years, life imprisonment or death, and his property shall also be confiscated:
(1) being a chief culprit of a gang engaged in counterfeiting currencies;
(2) having counterfeited especially huge amount of currencies; or
(3) being involved in other especially serious circumstances.
2. Whoever sells or buys counterfeited currencies or knowingly transports such currencies shall, if the amount involved is relatively large, be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also be imposed with a fine of not less than 20,000 yuan and not more than 200,000 yuan; if the amount is huge, the offender shall be sentenced to fixed-term imprisonment of not less than three years and not more than ten years and shall also be imposed with a fine of not less than 50,000 yuan and not more than 500,000 yuan; if the amount is especially huge, the offender shall be sentenced to fixed-term imprisonment of not less than ten years or life imprisonment and his property shall also be confiscated. Any employee of a bank or of any other banking institution who buys counterfeited currencies or, taking advantage of his position exchanges counterfeited currencies for real ones shall be sentenced to fixed-term imprisonment of not less than three years and not more than ten years and shall also be imposed with a fine of not less than 20,000 yuan and not more than 200,000 yuan; if the amount is huge or other serious circumstances are involved, the offender shall be sentenced to fixed-term imprisonment of not less than ten years or life imprisonment, and his property shall also be confiscated; if the circumstances are relatively minor, the offender shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and he shall also, or shall only, be imposed with a fine of not less than 10,000 yuan and not more than 100,000 yuan. Whoever counterfeits currencies and sells or transports such currencies shall be given a heavier punishment according to the provisions of Article 1.
3. Whoever smuggles counterfeited currencies shall be punished in accordance with the relevant provisions of the Supplementary Provisions Concerning the Punishment of the Crimes of Smuggling formulated by the Standing Committee of the National People's Congress .
4. Whoever knowingly holds or uses counterfeited currencies shall, if the amount involved is relatively large, be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also be imposed with a fine of not less than 10,000 yuan and not more than 100,000 yuan; if the amount is huge, the offender shall be sentenced to fixed-term imprisonment of not less than three years and not more than ten years and shall also be imposed with a fine of not less than 20,000 yuan and not more than 200,000 yuan; if the amount is especially huge, the offender shall be sentenced to fixed-term imprisonment of not less than ten years and shall also be imposed with a fine of not less than 50,000 yuan and not more than 500,000 yuan or his property shall be confiscated.
5. Whoever alters currencies shall, if the amount involved is relatively large, be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also be imposed with a fine of not less than 10,000 yuan and not more than 100,000 yuan; if the amount is huge, the offender shall be sentenced to fixed-term imprisonment of not less than three years and not more than ten years and shall also be imposed with a fine of not less than 20,000 yuan and not more than 200,000 yuan.
6. Whoever establishes a commercial bank or any other banking institution without the approval of the People's Bank of China shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and he shall also, or shall only, be imposed with a fine of not less than 20,000 yuan and not more than 200,000 yuan; if the circumstances are serious, the offender shall be sentenced to fixed-term imprisonment of not less than three years and not more than ten years and shall also be imposed with a fine of not less than 50,000 yuan and not more than 500,000 yuan. Whoever forges, alters or transfers the permit for operation of a commercial bank or any other banking institution shall be punished in accordance with the provisions of the preceding paragraph. A unit that commits the crimes mentioned in the preceding two paragraphs shall be imposed with a fine, and the leading members who are directly in charge and other persons who are directly responsible for the offence shall be punished in accordance with the provisions of the first paragraph.
7. Whoever illegally takes in deposits from the general public or does so in disguised form, thus disrupting the financial order, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also, or shall only, be imposed with a fine of not less than 20,000 yuan and not more than 200,000 yuan; if the amount involved is huge or other serious circumstances are involved, the offender shall be sentenced to fixed-term imprisonment of not less than three years and not more than ten years and shall also be imposed with a fine of not less than 50,000 yuan and not more than 500,000 yuan. A unit that commits the crime mentioned in the preceding paragraph shall be imposed with a fine, and the leading members who are directly in charge and other persons who are directly responsible for the offence shall be punished in accordance with the provisions of the preceding paragraph.
8. Whoever, for the purpose of illegal possession, unlawfully raises funds by means of fraud shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also be imposed with a fine of not less than 20,000 yuan and not more than 200,000 yuan; if the amount involved is huge or other serious circumstances are involved, the offender shall be sentenced to fixed- term imprisonment of not less than three years and not more than ten years and shall also be imposed with a fine of not less than 50,000 yuan and not more than 500,000 yuan; if the amount is especially huge or other especially serious circumstances are involved, the offender shall be sentenced to fixed-term imprisonment of not less than ten years, life imprisonment or death and his property shall also be confiscated. A unit that commits the crimes mentioned in the preceding paragraph shall be imposed with a fine, and the leading members who are directly in charge and other persons who are directly responsible for the offence shall be punished in accordance with the provisions of the preceding paragraph.
9. Any employee of a bank or of any other banking institution who, in violation of the provisions of laws or administrative rules and regulations, grants fiduciary loans to his connections or grants guaranteed loans to his connections or conditions that are more preferential than those for granting the same type of loans to other borrowers, thus causing relatively great losses, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also be imposed with a fine of not less than 10,000 yuan and not more than 100,000 yuan; if grave losses are caused, the offender shall be sentenced to fixed-term imprisonment of not less than five years and shall also be imposed with a fine of not less than 20,000 yuan and not more than 200,000 yuan. Any employee of a bank or of any other banking institution who, in violation of the provisions of laws or, administrative rules and regulations, neglecting his duties or abusing his power, grants loans to persons other than his connections, thus causing great losses, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also be imposed with a fine of not less than 10,000 yuan and not more than 100,000 yuan; if especially great losses are caused, the offender shall be sentenced to fixed-term imprisonment of not less than five years and shall also be imposed with a fine of not less than 20,000 yuan and not more than 200,000 yuan. A unit that commits the crimes mentioned in the preceding two paragraphs shall be imposed with a fine, and the leading members who are directly in charge and other persons who are directly responsible for the offence shall be punished in accordance with the provisions of the preceding two paragraphs.
10. Whoever commits any of the following acts to defraud a bank or any other financial institution of loans for the purpose of illegal possession shall, if the amount involved is relatively large, be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also be imposed with a fine of not less than 20,000 yuan and not more than 200,000 yuan; if the amount is huge or other serious circumstances are involved, the offender shall be sentenced to fixed-term imprisonment of not less than five years and not more than ten years and shall also be imposed with a fine of not less than 50,000 yuan and not more than 500,000 yuan; if the amount is especially huge or other especially serious circumstances are involved, the offender shall be sentenced to fixed-term imprisonment of not less than ten years or life imprisonment, and his property shall also be confiscated:
(1) inventing false reasons for obtaining funds or projects, etc. from abroad;
(2) using a false economic contract;
(3) using a false supporting document;
(4) using a false property right certificate as guaranty; or
(5) defrauding loans by other means.
11. Whoever commits any of the following acts, such as forging or altering financial bills, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also be imposed with a fine of not less than 20,000 yuan and not more than 200,000 yuan; if the circumstances are serious, the offender shall be sentenced to fixed-term imprisonment of not less than five years and not more than ten years, and shall also be imposed with a fine of not less than 50,000 yuan and not more than 500,000 yuan; if the circumstances are especially serious, the offender shall be sentenced to fixed-term imprisonment of not less than ten years or life imprisonment, and his property shall be confiscated:
(1) forging or altering bills of exchange, promissory notes or cheques;
(2) forging or altering settlement certificates of a bank such as certificates of entrustment with the receipt of payment, certificates of remittance and deposit receipts;
(3) forging or altering letters of credit or their attached bills and documents; or
(4) forging credit cards. A unit that commits any of the crimes mentioned in the preceding paragraph shall be imposed with a fine, and the leading members who are directly in charge and other persons who are directly responsible for the offence shall be punished in accordance with the provisions of the preceding paragraph.
12. Whoever commits fraud by means of financial bills in any of the following ways shall, if the amount involved is relatively large, be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also be imposed with a fine of not less than 20,000 yuan and not more than 200,000 yuan; if the amount is huge or other serious circumstances are involved, the offender shall be sentenced to fixed-term imprisonment of not less than five years and not more than ten years and shall also be imposed with a fine of not less than 50,000 yuan and not more than 500,000 yuan; if the amount is especially huge or other especially serious circumstances are involved, the offender shall be sentenced to fixed-term imprisonment of not less than ten years, life imprisonment or death, and his property shall also be confiscated.
(1) knowingly using forged or altered bills of exchange, promissory notes or cheques;
(2) knowingly using cancelled bills of exchange, promissory notes or cheques;
(3) fraudulently using another person's bills of exchange, promissory notes or cheques;
(4) signing and issuing a rubber cheque or a cheque, whereon the seal is not in conformity with the reserved specimen seal, to defraud money or property; or
(5) signing and issuing bills of exchange or promissory notes without reliable funds or specifying false particulars thereon by the drawer at the time of issue to defraud money or property. Whoever uses forged or altered settlement certificates of a bank such as certificates of entrustment with the receipt of payment, certificates of remittance and deposit receipts shall be punished in accordance with the provisions of the preceding paragraph. A unit that commits any of the crimes mentioned in the preceding two paragraphs shall be imposed with a fine; the leading members who are directly in charge and other persons who are directly responsible for the offence shall be punished in accordance with the provisions of the first paragraph.
13. Whoever commits fraud by means of letters of credit under any of the following ways shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also be imposed with a fine of not less than 20,000 yuan and not more than 200,000 yuan; if the amount involved is huge or other serious circumstances are involved, the offender shall be sentenced to fixed-term imprisonment of not less than five years and not more than ten years and shall also be imposed with a fine of not less than 50,000 yuan and not more than 500,000 yuan; if the amount is especially huge or other especially serious circumstances are involved, the offender shall be sentenced to fixed-term imprisonment of not less than ten years, life imprisonment or death, and his property shall be confiscated:
(1) using forged or altered letters of credit or their attached bills and documents;
(2) using cancelled letters of credit;
(3) fraudulently obtaining letters of credit; or
(4) in other ways. A unit that commits the crimes mentioned in the preceding paragraph shall be imposed with a fine; the leading members who are directly in charge and other persons who are directly responsible for the offence shall be punished in accordance with the provisions of the preceding paragraph.
14. Whoever commits fraud by means of credit cards in any of the following ways shall, if the amount involved is relatively large, be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also be imposed with a fine of not less than 20,000 yuan and not more than 200,000 yuan; if the amount is huge or other serious circumstances are involved, the offender shall be sentenced to fixed-term imprisonment of not less than five years and not more than ten years and shall also be imposed with a fine of not less than 50,000 yuan and not more than 500,000 yuan; if the amount is especially huge or other especially serious circumstances are involved, the offender shall be sentenced to fixed-term imprisonment of not less than ten years or life imprisonment, and his property shall also be confiscated:
(1) using forged credit cards;
(2) using cancelled credit cards;
(3) fraudulently using another person's credit cards; or
(4) maliciously overdrawing. Whoever steals credit cards and uses them shall be punished in accordance with the provisions of the Criminal Law on larceny.
15. Any employee of a bank or of any other financial institution who, in violation of the regulations, issues letters of credit or other letters of guaranty, negotiable instruments or credit certificates, thus causing relatively great losses, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention; if grave losses are caused, the offender shall be sentenced to fixed-term imprisonment of not less than five years. A unit that commits any of the crimes mentioned in the preceding paragraph shall be imposed with a fine; the leading members who are directly in charge and other persons who are directly responsible for the offence shall be punished in accordance with the provisions of the preceding paragraph.
16. Any of the following persons who commit fraud by means of insurance, if the amount involved is relatively large, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also be imposed with a fine of not less than 10,000 yuan and not more than 100,000 yuan; if the amount is huge or other serious circumstances are involved, the offender shall be sentenced to fixed-term imprisonment of not less than five years and not more than ten years and shall also be imposed with a fine of not less than 20,000 yuan and not more than 200,000 yuan; if the amount is especially huge or other especially serious circumstances are involved, the offender shall be sentenced to fixed-term imprisonment of not less than ten years, and his property shall be confiscated:
(1) insurance policy holders who deliberately fabricate the object of insurance to defraud insurance money;
(2) insurance policy holders, the insured or the beneficiaries who fabricate the cause of an insured accident or overstates the extent of losses to defraud insurance money;
(3) insurance policy holders, the insured or the beneficiaries who invent stories of an insured accident that never occurs to defraud insurance money;
(4) insurance policy holders or the insured who deliberately bring about an insured accident that causes property damage in order to defraud insurance money;
(5) insurance policy holders or the beneficiaries who deliberately inflict death, injury or illness on the insured to defraud insurance money. Whoever commits the act listed in sub-paragraph (4) or sub-paragraph (5) of the preceding paragraph, which also constitutes other crimes, shall be punished in accordance with the provisions of the Criminal Law on combined punishment for several crimes. An expert witness, witness or asset assessor of an insured accident who deliberately provides false supporting documents, thus creating conditions for the fraud of another person, shall be punished as an accomplice in insurance fraud. A unit that commits any of the crimes mentioned in the first paragraph shall be imposed with a fine; the leading members who are directly in charge and other persons who are directly responsible for the offence shall be punished in accordance with the provisions of the first paragraph.
17. Any employee of an insurance company who, taking advantage of his position, deliberately invents stories of an insured accident which never occurs to make false settlement of a claim for frauding insurance money shall be punished according to the relevant provisions of both the Supplementary Provisions of the Standing Committee of the National People's Congress Concerning the Punishment of Crimes of Embezzlement and Bribery and the Decision on Punishment of Crimes Against the Company Law .
18. Any employee of a bank or of any other banking institution who in financial activities, demands, or accepts bribes, or in violation of State regulations, accepts rebates or service charges in various names shall be punished according to the relevant provisions of both the Supplementary Provisions of the Standing Committee of the National People's Congress Concerning Punishment of Crimes of Embezzlement and Bribery and the Decision on Punishment of Crimes Against the Company Law .
19. Any employee of a bank or of any other banking institution who, taking advantage of his position, misappropriates the funds of a unit or a client shall be punished according to the relevant provisions of both the Supplementary Provisions of the Standing Committee of the National People's Congress Concerning Punishment of Crimes of Embezzlement and Bribery and the Decision on Punishment of Crimes Against the Company Law .
20. Any employee of a bank or of any other banking institution who colludes with the criminals engaged in the financial fraud activities as specified in this Decision, thus providing assistance to them in their fraudulent activities, shall be deemed as an accomplice and punished as such.
21. Whoever commits an act mentioned in Article 2, 4, 5, 11, 12, 14 or 16 of this Decision, if the circumstances are not serious enough to constitute a crime, shall be detained for a maximum of fifteen days or imposed with a penalty of not more than 5,000 yuan by the public security organ.
22. The illegal gains derived as a result of commission of the crimes specified in this Decision shall be recovered, or the offender shall be ordered to return them to the victim; all the property and money used for commission of the crimes shall be confiscated. All counterfeited or altered currencies, forged, altered or cancelled negotiable instruments, letters of credit, credit cards and other settlement certificates of a bank shall be recovered and handed over exclusively to the People's Bank of China for destruction. Specific measures for the recovery of counterfeited or altered currencies shall be formulated by the People's Bank of China.
23. The term "currencies" as used in this Decision refers to Renminbi and foreign currencies.
24. This Decision shall go into effect as of the date of promulgation.
