China Intensifies Crackdown on Financial Crimes, Charging Over 340 Individuals in 2023

Prosecutors in China’s finance sector work to prevent and defuse economic and financial risks, leading to an increase in corruption and dereliction of duty charges.

China’s Supreme People’s Procuratorate (SPP) has reported a significant increase in the number of individuals charged with corruption or dereliction of duty in the finance sector. According to the SPP, over 340 people were charged in 2023, marking a nearly 35% increase compared to the previous year. The crackdown on financial crimes, including insider trading, is part of the country’s efforts to enhance monitoring and maintain an upturn in the economy. This article explores the SPP’s actions, the impact on the financial sector, and the government’s commitment to preventing major security risks.

Prosecutors Target Corruption in the Financial Sector:

The SPP’s case management office highlighted the focus on preventing and defusing economic and financial risks. Prosecutors have been actively targeting corruption, dereliction of duty, and abuse of power committed by staff in financial oversight departments. By charging individuals involved in these crimes, the SPP aims to provide rule of law safeguards and create a favorable business environment for economic development.

Increased Charges and Collaborative Efforts:

Last year, the SPP worked closely with the Ministry of Public Security to oversee major financial fraud cases, including those related to private equity funds. Over 300 individuals were charged with crimes related to securities, indicating a 9.2% increase compared to the previous year. This collaboration between the SPP and law enforcement agencies demonstrates the government’s commitment to cracking down on financial crimes and maintaining financial security.

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Continued Crackdown on Financial Crimes:

Financial crimes remain a top priority for Chinese prosecutors in 2024. The SPP has pledged to extend the crackdown on offenses such as insider trading and market manipulation. President Xi Jinping’s call to prevent and defuse major security risks has further emphasized the importance of addressing financial crimes. These efforts align with the government’s focus on high-quality development in the financial sector.

SPP Chief’s Report and Future Plans:

During the National People’s Congress, SPP Chief Ying Yong reported on the agency’s efforts in maintaining financial security. He highlighted that 27,000 individuals were charged with financial fraud and financial management irregularities. Of those, 18,000 people were accused of fundraising fraud and illegally taking deposits from the public. Ying reiterated the commitment to strictly punish financial crimes to support the high-quality development of the financial sector in the upcoming year.

Government’s Strengthened Oversight:

To strengthen oversight of the financial sector, the Communist Party has become the country’s top financial regulator. The establishment of the Central Financial Commission in March 2023 solidified the Party’s role in financial regulation. President Xi Jinping emphasized the need to prevent and resolve financial risks during the central financial work conference in October. The SPP released guidelines in December, outlining the actions public prosecutors must take to tackle financial crimes effectively.

Conclusion:

China’s intensified crackdown on financial crimes, including corruption and dereliction of duty, has led to a significant increase in the number of individuals charged in the finance sector. The SPP’s efforts to prevent and defuse economic and financial risks align with the government’s commitment to maintaining financial security and high-quality development in the financial sector. As China continues to strengthen oversight and collaborate with law enforcement agencies, the country aims to create a robust business environment and safeguard its economy from major security risks.

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