A series of Chinese commercial banks have recently been found violating regulations and penalized by the central bank.

China’s Securities Times reported that the violators are both urban and rural banks, including big players such as Industrial and Commercial Bank of China (ICBC).

On June 17, the Chongqing operation management department of the People’s Bank of China, or central bank, disclosed some of the largest transgressors who were fined over $150,000. They involved types of illegal acts, including transactions with unidentified customers and failure to perform customer identifications as required.

Chongqing branch of Industrial and Commercial Bank of China

A branch of ICBC in Chongqing was fined $910,000. In addition, four relevant persons were also punished.

There were illegal activities involved in ICBC’s Chongqing branch including, 

  • Misappropriation of funds; 
  • Failure to submit the account opening to the central bank; 
  • Failure to perform customer identifications; 
  • Failure to keep customer identity information and transaction records; 
  • Failure to submit suspicious transaction reports; 
  • Conducting transactions with unidentified customers;
  • Not correcting consumer complaints.

Bank of Chongqing

The Bank of Chongqing received a fine of $590,000.

According to an Administrative Penalty Decision disclosed on June 17, the Bank of Chongqing failed to perform its customer identification obligations in accordance with regulations. The lender also failed to keep customer identification information and transaction records, and failed to submit large transaction reports and suspicious transaction reports as required.

In addition, the managers of the operations department, the internal control and compliance department, and the personal banking department all got fined.

Chongqing Rural Commercial Bank

Chongqing Rural Commercial Bank was fined $380,000.

The bank also failed to perform the customer identification, failed to keep customer identity information and transaction records, and failed to submit large-value and suspicious transaction reports. Three relevant persons at the bank were also penalized.

According to the central bank’s Administrative Penalty Decision, three other banks in Chongqing were fined for similar violations.

Chongqing Pengshui Mintai Village Bank was fined $209,000, Chongqing Dazu HSBC Rural Bank fined $93,000, and Chongqing Jiangjin Shiyin Rural Bank fined $52,000.

ICBC’s Jilin Branch and Jilin Jiutai Bank

On June 17, the Changchun sub-branch of the central bank revealed that two banks in Jilin Province received fines of almost $150,000.

The Jilin Branch of ICBC received a fine of $760,000 for violating relevant regulations.

According to the Administrative Penalty Decision, the ICBC branch has occupied financial funds; violated account management regulations and credit information collection. In addition, the branch also failed to disclose important content related to financial products and services to financial consumers.

Meanwhile, Jilin Jiutai Rural Commercial Bank was finally fined $216,000 for violating credit information collection and related management regulations; and failing to perform customer identification obligations.

Bank of Guizhou

The Guiyang sub-branch of the People’s Bank of China has recently disclosed fines against seven banks. Two banks among them were fined over $150,000, namely Bank of Guizhou and the Guiyang branch of the Industrial Bank.

The Bank of Guizhou was fined $424,000 for 13 illegal acts, such as using technical measures to force consumers to accept financial products and services in disguised form, making transactions with unidentified customers, or picking out counterfeit money.

In addition, the manager of the operation department, the manager of the legal compliance department, the deputy manager of the information technology department, and the manager of the transaction banking department all received fines.

Industrial Bank’s Guiyang Branch

The Guiyang Branch of the Industrial Bank was warned by the Guiyang sub-branch of the People’s Bank of China. The branch was fined $267,000 for submitting information on account opening and revocation beyond the deadline.

Sign up to receive our latest news!

By submitting this form, I agree to the terms.