Laws of the People's Republic of China

No. 58

The Decision of the Standing Committee of the NPC concerning the Modification of the Banking Supervision Law of the People's Republic of China, which was adopted at the 24th meeting of the Standing Committee of the 10th NPC of the People's Republic of China on October 31, 2006, is hereby announced and shall enter into force as from January 1, 2007. President of the People's Republic of China Hu Jintao

October 31, 2006

Decision of the Standing Committee of the NPC concerning the Modification of the Banking Supervision Law of the People's Republic of China

(Adopted at the 24th meeting of the Standing Committee of the 10th NPC of the People's Republic of China on October 31, 2006)

The decision is made at the 24th meeting of the Standing Committee of the 10th NPC of the People's Republic of China to modify the Banking Supervision Law of the People's Republic of China as follows:

1.

A new article shall be added as Article 42 : "When implementing any inspection of banking financial institutions, the banking regulatory organ may, pursuant to approval of the person in charge of the banking regulatory organ at or above the level of districted city, take the following steps against any entity or individual under the suspicion of being involved in illegal acts:

(1)

Inquiring about the related entity or individual, and requiring it/him to explain the related issues;

(2)

Inspecting and copying related financial accounting, property registration and other documents and materials;

(3)

Implementing advanced registration and preservation of documents and materials which may be transferred, concealed, destroyed or falsified."

"When the banking regulatory organ takes the steps prescribed in the previous Paragraph, there shall be no less than two functionaries with showing lawful certificates and investigation notices. In case there are less than two investigation functionaries or they fail to show lawful certificates or investigation notices, the related entity or individual shall have the right to refuse the investigation. If the steps are adopted in according to law, the related entity or individual shall give coordination, faithfully explain the related conditions and provide related documents and materials, and shall not refuse to do so, or hamper or hide anything."

2.

Article 42 shall be modified into Article 43 , and a new item shall be added to paragraph 1 as Item 6: "Investigating the related entity or individual against Article 42 of the present Law".

Paragraph 2 shall be modified as: "In case any functionary for supervision and administration in the banking regulatory organ embezzles public funds, accepts bribes, divulges state secrets, commercial secrets or personal privacy, if any crime is committed, he shall be prosecuted for criminal liabilities; and if no crime is committed, he shall be given an administrative sanction in accordance with law."

3.

A new article shall be added as Article 49 : "If anyone hampers any inspection or investigation legally carried out by the functionaries of the banking regulatory organ, he shall be given a public security administrative penalty; and if any crime is committed, he shall be prosecuted for criminal liabilities."

The present Decision shall enter into force as from January 1, 2007.

The Banking Supervision Law of the People's Republic of China shall be re-announced after the Modifications have been made and the sequential numbers of the articles are accordingly adjusted subject to the present Decision.