The first half of 2022 ended amid the repetitions and fluctuations of the new crown . The operation of the economy, finance and capital markets were all affected by the new crown to a certain extent, and the second half of the year will also face more arduous recovery and development tasks.
21 Century Asset Management Research Institute launched this "Financial Compliance Semi-Annual Report for the First Half of 2022" based on data statistics and analysis. The report shows that in the first half of this year, financial institutions collected a total of 5,944 fines, with a total penalty amount of 1.415 billion. Among them, the banking industry received 3,872 fines, with a total fine of 1.182 billion yuan. There were 6 fines exceeding RMB 10 million, a significant decrease compared to the same period last year. The
report concluded that financial compliance showed several major characteristics in the first half of this year. First, with the end of the transition period for the new asset management regulations, the compliance situation of financial management business has improved. At the same time, with the independent operation of financial management companies, , for the first time, a wealth management company was fined, and the financial management business compliance entities may gradually turn to wealth management companies; second, supervision has increased attention to the violations of small and medium-sized banks and the intensity of penalties. Rural commercial banks are the type with the largest number and amount of penalties , at the same time, in the first half of this year, the largest single fine also fell on a rural commercial bank; third, anti-money laundering penalties were intensified. This year, 11 departments jointly launched a three-year campaign to combat money laundering crimes, and there were also large fines of more than 20 million yuan in the anti-money laundering field. 4. The issue of financial information protection has attracted more and more attention, and the intensity of penalties has also increased; 5. In terms of judicial litigation, bancassurance institutions have been listed as subject to execution information, but securities/funds/private equity have been listed as judicial The information of the person subject to execution increased significantly by 78%.
The content of this report includes:
- Ranking of banking industry penalties in the first half of the year (number of fines, amount of fines, institutions with large fines exceeding 10 million)
- Distribution of causes of violation cases in the banking industry in the first half of the year
- Overview of penalties for other financial institutions in the first half of the year
- Finance in the first half of the year The overall situation of institutional penalties (by penalty department, type of institution, region, and object of punishment)
- The situation of financial institutions involved in lawsuits in the first half of the year (information on enforcement and breach of trust enforcement)
- Analysis of financial compliance characteristics in the first half of the year
- Top ten typical financial compliance in the first half of the year Regulation cases
1. Ranking of banking industry penalties in the first half of the year
(1) Agricultural Bank of China has the largest number of fines, and ICBC has the largest total amount of fines
In the first half of this year, Agricultural Bank of China, Industrial and Commercial Bank of China , and Postal Savings Bank of China ranked first in the number of fines. Third, Agricultural Bank of China ranked first with 221 fines; in terms of the amount of penalties, ICBC was fined the most in the first half of this year, ranking first with a total penalty of 62.7669 million yuan, followed by Agricultural Bank of China and Qingdao Rural Commercial Bank.
(2) 6 fines exceeding RMB 10 million
In the first half of this year, there were 6 fines in the banking industry with penalties exceeding RMB 10 million. Compared with the 14 large fines exceeding RMB 10 million in the first half of last year, the number of large fines this year has decreased significantly.
In comparison, it is mainly due to the landing of several large fines involving China Banking and Insurance Regulatory Commission 2018 on-site inspection penalties in the first half of last year.
For example, in May last year, the China Banking and Insurance Regulatory Commission made administrative penalty decisions on Hua Xia Bank , Bohai Bank , Bank of China , China Merchants Bank and East Asia China and five financial institutions and relevant responsible personnel. The total amount of penalties was approximately 366 million yuan. The reasons for which the relevant banks were punished ranged from 18 to 36. The more common business lines involving penalties include credit business, wealth management business, and interbank business.
When disclosing relevant penalties, the China Banking and Insurance Regulatory Commission stated that it will maintain a high-pressure posture of punishment and accountability for various financial market chaos, crack down on regulatory arbitrage in accordance with the law, and strictly prevent idling of funds. Banking and insurance institutions are urged to strengthen compliance, operate prudently in accordance with the law, serve the real economy, protect the legitimate rights and interests of financial consumers, and ensure the implementation of various major national policies.
According to the 21st Century Asset Management Research Institute, the relevant penalties originated from on-site inspections carried out by the China Banking and Insurance Regulatory Commission in 2018. Subsequently, the banks involved in the penalties stated that they had implemented rectifications on relevant matters.
2. Distribution of causes of violations in the banking industry in the first half of the year
The five key areas of violations in the banking industry in the first half of this year are credit, anti-money laundering, cooperation with supervision, settlement and cash, and corporate governance.
3. Penalties for non-bank financial institutions: Brokerages investment banking business were heavily fined
In the first half of this year, the majority of brokerage fines were imposed on brokerage business and investment banking business. The violations in the brokerage business mainly include irregularities in the conduct of investment consulting business, Selling financial products in violation of regulations, handling securities transactions for customers, and providing intermediaries for financing between customers. It is worth mentioning that in recent years, with the increase in the number of financial products sold by brokerages on behalf of brokers, fines for brokerage sales have also begun to appear.
In the first half of this year, the penalties for investment banking business have increased significantly, including Guohai Securities , Western Securities, Hualong Securities , Ping An Securities , Zhongde Securities and many other securities firms have collected fines for their investment banking businesses. Due to financial fraud and other issues found in sponsor projects, many securities companies and investment banks were implicated and fined. For example, due to financial fraud on LeTV , the sponsor Ping An Securities and Shanxi Securities Holdings subsidiary Zhongde Securities were fined. Among them, Ping An Securities was fined for In the process of sponsoring LeTV's initial public offering and listing on the GEM, due diligence was not carried out diligently and internal control mechanisms were not implemented in place, and the sponsor's qualifications were suspended for 3 months.
Zhongde Securities, a subsidiary of Shanxi Securities, failed to perform its due diligence in the sponsorship business of LeTV’s 2016 non-public offering, including failing to fully obtain and compile the sales information of the top ten customers and failing to verify the authenticity of the business. After verification, the China Securities Regulatory Commission ordered it to make corrections, gave it a warning, confiscated business income of 5.6604 million yuan, and imposed a fine of 11.3208 million yuan.
Yuekai Securities serves as the trustee of the non-public issuance of corporate bond projects "17 Lu Sheng 01", "18 Lu Sheng 01" and "18 Lu Sheng 02" of Shandong Shengtong Group Co., Ltd. (hereinafter referred to as Shengtong Group ) The manager was issued a warning letter by the Guangdong Securities Regulatory Bureau for failing to maintain professional prudence during the trusteeship management process. Previously, Shengtong Group was found to have inflated its main business income by 61.54 billion yuan from 2013 to 2017, and its total inflated profits by 11.911 billion yuan. After deducting the inflated profit of and , Shengtong Group's profit status in each year is a loss.
In terms of penalties for public funds and private funds, the majority of fines are from private funds. The penalties are mainly concentrated on violations in the sales process. There are also many penalties for failing to file in time after the completion of the fund raising. In the process of managing private funds, they failed to fulfill their duties and failed to fulfill their duties. Private equity funds that perform their obligations of good faith, prudence and diligence have also been punished, such as Beijing Vulture Asset Management Co., Ltd., Beijing Jiuyue Investment Management Co., Ltd., etc. There was even a private equity fund, Shengshang Capital Management Co., Ltd. that embezzled and misappropriated fund property and was ordered by the Beijing Securities Regulatory Bureau to correct administrative supervision measures.
4. The overall situation of financial industry penalties in the first half of the year
Statistics show that in the first half of this year, financial institutions collected a total of 5,944 fines, with a total penalty amount of 1.415 billion.
Judging from the fines issued by non-banking financial institutions, the insurance industry received 1,591 fines in the first half of this year, with a total penalty amount of 141 million; securities companies received 160 fines, with a total penalty amount of 30.6269 million; trusts received 75 fines, with a total penalty amount of 26.471 million ; Public funds and private funds received 112 fines, with a total penalty amount of 2.3137 million.
From the perspective of financial regulatory authorities, regulatory authorities that impose administrative penalties on the financial industry include dealer associations, exchanges, State Administration of Foreign Exchange, central bank, , China Banking and Insurance Regulatory Commission, and China Securities Regulatory Commission. Among them, the China Banking and Insurance Regulatory Commission has issued the largest number of fines. Followed by the central bank and the China Securities Regulatory Commission.
5. Involvement of financial institutions in lawsuits: Securities/funds/private equity institutions are frequently listed as persons subject to execution for breach of trust, with a year-on-year increase of 78%
Banking institutions were listed as persons subject to execution in the first half of this year (including those that have been revoked, the following There were 3,170 pieces of information about the same), a year-on-year decrease of 43.1%. There were 13,273 insurance institutions, a decrease of 24.3% compared with the same period last year. There were 718 securities/fund/private equity institutions, a year-on-year increase of 49.9%.
In the first half of this year, there were 11 pieces of information about the banking industry being listed as dishonest persons subject to enforcement; there were 6 pieces of information about the insurance industry being listed as dishonest persons subject to enforcement, Bohai Property Insurance Co., Ltd. two branches were listed as There were 89 pieces of information about dishonest persons subject to enforcement; securities/funds/private equity institutions were listed as dishonest persons subject to enforcement, a year-on-year increase of 78%, among which Juzhou Asset Management (Shanghai) Co., Ltd., Dalian Huaxun Investment Co., Ltd. were There is a lot of information listed as dishonest persons subject to execution.
11 pieces of information in the banking industry listed as dishonest persons subject to enforcement
VI. Analysis of financial compliance characteristics in the first half of the year
(1) Compliance has improved in the financial business field, and large fines have been significantly reduced
With the implementation of new asset management regulations , the historical problems in the financial management business have gradually improved, and the penalties for the financial management business have been reduced in the first half of this year.
According to incomplete statistics, the number of financial business fines containing the word "financial management" in the first half of this year was 28, compared with 46 in the same period last year, a year-on-year decrease of 39.1%. The financial management business fines in the first half of this year mainly punished violations related to non-standard investments, including imprudent investment in non-standardized debt assets of financial management products, false transfer of non-standard debt assets, failure to manage non-standard investments in accordance with self-operated loans, and non-standard asset deadlines for financial management investments. Does not match the term of the financial product. In addition, penalties were imposed for violations such as the rebound in the scale of old products at certain points in time, implicit guarantees for wealth management business, indirect investment of wealth management funds into the bank's credit assets, and illegal sales of wealth management products.
(2) New cases of punishment of financial management companies
In the first half of this year, financial management companies were fined for the first time. The main body of punishment for violations in the investment and operation of financial business may gradually turn to financial management companies.
On June 2, 2022, the official website of the China Banking and Insurance Regulatory Commission announced four fines: due to illegal activities in the financial management business, BOC Wealth Management was fined 4.6 million yuan, BOC was fined 2 million yuan; Everbright Wealth Management was fined 4.3 million yuan. , China Everbright Bank was fined 4 million yuan.
The main problems of BOC Financial Management include that the market value of a single security held by publicly offered financial management products exceeds 10% of the net assets of the product, and the market value of a single security held by all publicly offered financial management products exceeds 30% of the market value of the security. The main problems of Everbright Financial Management Problems include: the market value of a single public securities investment fund held by a public offering financial management product exceeds 10% of the net assets of the product; the market value of a single security held by all public offering financial management products exceeds 30% of the market value of the security; open-ended public offering financial management products hold The proportion of highly liquid assets is not up to standard, etc.
The industry believes that being punished by the China Banking and Insurance Regulatory Commission for the first time marks that the China Banking and Insurance Regulatory Commission has established a full-process supervision system from legislation to law enforcement for wealth management companies and related businesses, and is another important progress in implementing the requirements of the new asset management regulations.
It is worth noting that this is also the first time that the custody institution of financial management products has been punished. Bank of China and Everbright Bank are the custodian banks of BOC Wealth Management and Everbright Wealth Management respectively. Bank of China was fined because the scale of old products rebounded at some points in time; China Everbright Bank was fined because the scale of old products rebounded at certain points in time, the custodian institution failed to discover in time that the concentration of wealth management products exceeded standards, and custody business violations Asset independence requirements and operational management are not in place.
As financial management companies operate independently, relevant regulatory authorities increasingly emphasize their independence and compliance in corporate governance and other aspects as independent asset management institutions.In April this year, the China Banking and Insurance Regulatory Commission formulated and issued the "Measures for the Internal Control and Management of Wealth Management Companies (Draft for Comments)", requiring wealth management companies to establish a comprehensive, checks and balances, matching and prudent internal control management mechanism and organizational structure, improve the hierarchical authorization mechanism for investment management, and improve Manage the entire transaction system and strengthen all-round management of key personnel in important positions.
(3) Increased penalties for small and medium-sized banks such as rural commercial banks
From the perspective of penalties for different types of banking institutions, rural commercial banks were the most severely punished in the first half of this year. Whether it was the number of fines or the amount of penalties, rural commercial banks ranked first, followed by It is a state-owned bank, and the third one is a joint-stock bank.
According to statistics from the 21st Century Asset Management Research Institute, rural commercial banks had the largest number of fines in the first half of last year. However, compared with state-owned banks, which ranked second in the number of fines, rural commercial banks only had 34 more fines than state-owned banks. However, in the first half of this year, the number of fines issued to rural commercial banks was 270 more than that of the second-ranked state-owned bank, and the number of fines was far more than that of the third-ranked joint-stock bank.
It is also worth noting that compared with the past situation where large fines were relatively concentrated on large banks, the largest fine in the first half of this year "fell" to a rural commercial bank - Qingdao Rural Commercial Bank, involving a penalty amount of 44.1 million yuan, violating regulations The reasons mainly involve the credit field, credit card field and poor employee behavior control.
Specifically, Qingdao Rural Commercial Bank was involved in the following reasons: five-level loan classification was inaccurate, post-investment risk control of investment business was not in place, employee behavior control was ineffective, and the loan was converted into a deposit to issue bank acceptance bill , The effectiveness of data management is lacking, liquidity loans are misappropriated, real estate loan management is seriously imprudent, and credit card overdraft funds flow into non-consumption areas.
(4) 11 departments jointly launched a three-year anti-money laundering campaign, and anti-money laundering penalties were increased.
In recent years, anti-money laundering efforts have been significantly increased, and fines exceeding tens of millions have appeared frequently. In the first half of this year, there was a large fine of more than 20 million yuan. Zhejiang Online Commerce Bank was fined 22.365 million yuan by the central bank for violating anti-money laundering laws and other illegal activities. This penalty amount ranked second in the first half of this year.
In January this year, 11 departments including the People's Bank of China and the Ministry of Public Security jointly launched a three-year campaign to crack down on money laundering crimes. The regulatory authorities pointed out that the current situation of combating money laundering crimes is still severe, and mentioned "enhancing the money laundering risk prevention and control capabilities of anti-money laundering obligated institutions." This also puts forward requirements for financial institutions to strengthen the construction of anti-money laundering teams and establish a long-term mechanism for anti-money laundering training.
(5) "Thousands of students in Guangxi were opened tens of thousands of bank electronic accounts in batches" and the penalty was implemented
On January 20 this year, the Chongzuo Central Branch of the People's Bank of China disclosed the penalty information, which showed that the Chongzuo Branch of the Agricultural Bank of China was responsible for "failure to For illegal activities such as implementing the real-name management regulations for personal bank accounts, using personal financial information in violation of regulations, failing to strictly implement bank account risk monitoring requirements, and failing to completely preserve customer identity information as required, the bank was given a warning and fined a total of 11.425 million yuan. At the same time, five relevant persons in charge of the bank also received fines respectively.
This fine is a follow-up to last year’s incident in which “1,457 students in Guangxi were opened tens of thousands of Class II and III accounts in batches.”
In December last year, media reported that the business office of the Chongzuo Jiangzhou Branch of the Agricultural Bank of China used student information obtained when it provided tuition collection services to schools to open 12,536 Class II and III electronic accounts in batches. At that time, many interviewees said that such incidents were mostly caused by the grass-roots level of banks trying to meet performance appraisal targets.
Subsequently, the Guangxi Branch of the Agricultural Bank of China announced on its WeChat public account that, "After verification, the matter was indeed caused by the business office of our bank's Jiangzhou branch failing to fully communicate with customers, lax internal audits, and non-standard operations." , and stated that it would contact the relevant students one by one as soon as possible and cancel the extra accounts with their consent.
7. Top ten typical financial compliance cases in the first half of the year
1. Qingdao Rural Commercial Bank was fined RMB 44.1 million
Reasons for the case: inaccurate five-level loan classification, inadequate post-investment risk management and control of investment business, poor employee behavior control, loan transfer Issuance of bank acceptance bills with margin, lack of effectiveness of data governance, misappropriation of liquidity loans, serious imprudent management of real estate loans, credit card overdraft funds flowing into non-consumer areas, etc.
2, Agricultural Bank of China Chongzuo Branch was fined 11.425 million yuan: batch of violations The reasons for opening tens of thousands of II and III accounts
include: failure to implement the real-name management regulations for personal bank accounts; illegal use of personal financial information; failure to strictly implement bank account risk monitoring requirements; failure to fully preserve customer identity information as required. In this incident, multiple responsible persons were punished together.
3. The first regulatory fine on bank financial management companies and custodian banks: Everbright Financial Management was fined 4.3 million yuan; BOC Financial Management was fined 4.6 million yuan.
Everbright Financial Management Case Reason: The market value of a single public securities investment fund held by a public offering financial management product exceeds 10% of the net assets of the product; the market value of a single security held by all public offering financial management products exceeds 30% of the market value of the security; open public offering financial management products The proportion of highly liquid assets held by the product does not meet the standard; there are hidden risks in using third-party mobile office platforms, and the effectiveness of information system management and control is insufficient; the promotion of financial products is inconsistent and inaccurate.
BOC Financial Management Case Reasons: The market value of a single security held by a publicly offered financial management product exceeds 10% of the net assets of the product; the market value of a single security held by all publicly offered financial management products exceeds 30% of the market value of the security; leverage of open-ended publicly offered financial management products The level of exceeds the standard; transactions involving the same counterparty and similar underlying assets under the same contract are unfair; the investment assets of wealth management products are illegally valued using the amortized cost method; the identification of related legal persons by wealth management companies does not meet regulatory requirements
4 , Online Banking was fined 22.365 million yuan, and many executives and employees were fined
Reasons for the case: 1. Violation of relevant regulations on financial statistics management. 2. (1) Violation of relevant regulations on account management; (2) Violation of relevant regulations on liquidation management. 3. Violate relevant regulations on credit reporting management. (1) Failure to perform customer identification obligations as required; (2) Failure to preserve customer identity information and transaction records as required; (3) Failure to perform suspicious transaction reporting obligations as required; (4) Transactions with unidentified customers.
In response to this violation, many MYbank executives and employees were fined.
5. Taiyuan Branch of Minsheng Bank was fined 17.1 million yuan: it carried out the full commitment business without the authorization of the head office
Causes of the case: it carried out the full commitment business without the authorization of the head office; failed to conduct financial accounting in accordance with the accounting principles ; the records in the official seal registration book were untrue; Provisions are made in accordance with the "penetration" principle; provisions are issued; entrusted loans are actually assumed; and implicit guarantees are provided during the investment and operation of financial management business.
6, Kuaiqian Pay was fined 10.04 million yuan, and the then senior executives were also fined
Causes of the case: 1. Violation of account management regulations; 2. Violation of liquidation management regulations; 3. Failure to perform customer identification obligations as required; 4. Concern with identity Unknown customer transactions.
The executives who were fined: Dang Xiaoqiang (then director, CEO, and general manager); Teng Shijun (then assistant vice president).
7. Fuzhou Branch of Agricultural Bank of China was fined 6.5 million yuan, and 6 employees were fined together
Reasons for the case: Failure to include land use rights and projects under construction in mortgage guarantees as required; failure to implement loan entrustment payment management regulations; failure to issue loans according to project progress ; Issuing working capital loans for fixed asset investment
8, East Asia China collected another large fine and was fined 16.74 million yuan
Cause of the case: Violation of credit information collection, provision, inquiry and related management regulations.
9, Zhongde Securities was fined 11.3208 million yuan
Cause of the case: LeTV’s 2016 non-public offering and illegal situation; Zhongde Securities’ non-public issuance sponsorship business; Zhongde Securities was suspected of not being diligent and responsible.
10, China Pacific Life Insurance Co., Ltd. was fined 4.7 million
Causes of the case: 1. Failure to perform customer identification obligations as required; 2. Failure to preserve customer identity information and transaction records as required; 3. Conducting transactions with unidentified customers trade.
( Enterprise Early Warning Channel provides data support for this article)
(Author: Tang Yaohua, Yang Xi Editor: Fang Haiping)
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