Laws of the People's Republic of China

    The following Decision is made in order to punish crimes against
financial order such as currency forgery, finance bills swindling, letter of
credit swindling and illegal collection swindling.

    1. Whoever commits a currency forgery shall be sentenced to a fixed-term
imprisonment of not less than three years and not more than ten years, and be
concurrently sentenced to a fine ranging from 50,000 to 100,000 yuan. Any of
the following categories of persons shall be sentenced to a fixed-term
imprisonment of not less than ten years, life imprisonment or death and be
imposed confiscation of property concurrently:

    (1) those principal criminal of the currency forgery group;

    (2) those with  especially huge amount of forged currency;

    (3) those with other especially serious circumstances.

    2. Whoever sells or purchases forged currency or transports knowingly
forged currency shall, if the amount involved is relatively huge, be sentenced
to a fixed-term imprisonment of not more than three years or criminal
detention, and be concurrently sentenced to a fine ranging from 20,000 to
200,000 yuan; if the amount involved is huge, he shall be sentenced to a
fixed-term imprisonment of not less than three years and not more than ten
years, and be concurrently sentenced to a fine ranging from 50,000 to 500,000
yuan; if the amount involved is especially huge, he shall be sentenced to a
fixed-term imprisonment of not less than ten years or life imprisonment and
be concurrently sentenced to confiscation of property.

    Whoever from the staff of bank or other financial institutions purchases
forged currency or takes advantage of duties to exchange currency with forged
currency shall be sentenced to fixed-term imprisonment of not less than three
years and not more than ten years, and be concurrently sentenced to a fine
ranging from 20,000 to 200,000 yuan; if the amount involved is huge and the
circumstances are serious, he shall be sentenced to a fixed-term imprisonment
of not less than ten years or life imprisonment and be concurrently sentenced
to confiscation of property; if the circumstances are minor, he shall be
sentenced to a fixed-term imprisonment of not more than three years or
criminal detention, and be concurrently sentenced to a fine or be
independently sentenced to a fine ranging from 10,000 to 100,000 yuan.

    Whoever forges currency and sells or transports the forged currency shall
be given a heavier punishment in accordance with the provision of Article 1.

    3. Whoever smuggles forged currency shall be punished according to the
relevant provisions of the Supplementary Provisions on Punishment of Smuggling
by the Standing Committee of the National People's Congress.

    4. Whoever holds or uses knowingly forged currency shall, if the amount
involved is relatively huge, be sentenced to a fixed-term imprisonment of not
more than three years or criminal detention, and be concurrently sentenced to
a fine ranging from 10,000 to 100,000 yuan; if the amount involved is huge, he
shall be sentenced to a fixed-term imprisonment of not less than three years
and not more than ten years, and be concurrently sentenced to a fine ranging
from 20,000 to 200,000 yuan; if the amount involved is especially huge, he
shall be sentenced to a fixed-term imprisonment of not less than ten years and
be concurrently sentenced to a fine ranging from 50,000 to 500,000 yuan or
confiscation of property.

    5. Whoever alters currency shall, if the amount involved is relatively
huge, be sentenced to a fixed-term imprisonment of not more than three years
or criminal detention, and be concurrently sentenced to a fine ranging from
10,000 to 100,000 yuan; if the amount involved is huge, he shall be sentenced
to a fixed-term imprisonment of not less than three years and not more than
ten years, and be concurrently sentenced to a fine ranging from 20,000 to
200,000 yuan.

    6. Whoever establishes a commercial bank or other financial institution
without authorization by the People's Bank of China shall be sentenced to a
fixed-term imprisonment of not more than three years or criminal detention,
and be concurrently sentenced to a fine or be independently setenced to a fine
ranging from 20,000 to 200,000 yuan; if the circumstances are serious, he
shall be sentenced to a fixed-term imprisonment of not less than three years
and not more than ten years, and be concurrently sentenced to a fine ranging
from 50,000 to 500,000 yuan.

    Whoever forges, alters or transfers an operating license of bank or other
financial institution shall be punished according to the provisions of the
proceeding paragraph.

    Whichever working unit commits the crimes mentioned in the two proceeding
paragraphs shall be sentenced to a fine, and the direct responsible person in
charge and other direct responsible personnel shall be punished according to
the provisions of paragraph 1.

    7. Whoever illegally absorbs the savings account of the public or absorbs
the savings account of the public in disguised form disturbing the financial
order shall be sentenced to a fixed-term imprisonment of not more than three
years or criminal detention, and be concurrently sentenced to a fine or be
independently sentenced to a fine ranging from 20,000 to 200,000 yuan; if the
amount involved is huge and the circumstances are serious, he shall be
sentenced to a fixed-term imprisonment of not less than three years and not
more than ten years, and be concurrently sentenced to a fine ranging from
50,000 to 500,000 yuan.

    Whichever working unit commits the crimes mentioned in the proceeding
paragraph shall be sentenced to a fine, and the direct responsible person in
charge and other direct responsible personnel shall be punished according to
the provisions of the proceeding paragraph.

    8. For the sake of illegal possession whoever illegally collects capital
in method of swindling shall be sentenced to a fixed-term imprisonment of not
more than three years or criminal detention, and be concurrently sentenced to
a fine ranging from 20,000 to 200,000 yuan; if the amount involved is huge and
the circumstances are serious, he shall be sentenced to a fixed-term
imprisonment of not less than three years and not more than ten years, and be
concurrently sentenced to a fine ranging from 50,000 to 500,000 yuan; if the
amount involved is especially huge and the circumstances are especially
serious, he shall be sentenced to a fixed-term imprisonment of not less than
ten years, life imprisonment or death penalty, and be concurrently sentenced
to confiscation of property.

    Whichever working unit commits the crimes mentioned in the proceeding
paragraph shall be sentenced to a fine, and the direct responsible person in
charge and other direct responsible personnel shall be punished according to
the provisions of the proceeding paragraph.

    9. Against the provisions of the laws and administrative regulations
whoever from the staff of a bank or other financial institution issues a
credit loan or a guaranteed loan to his parties with more favorable condition
than to other borrowers for the same kind of loans shall, if the relatively
huge loss is caused, be sentenced to a fixed-term imprisonment of not more
than five years or criminal detention, and be concurrently sentenced to a fine
ranging from 10,000 to 100,000 yuan; if the major loss is caused, he shall be
sentenced to a fixed-term imprisonment of not less than five years and be
concurrently sentenced to a fine ranging from 20,000 to 200,000 yuan.

    Against the provisions of the laws and administrative regulations whoever
from the staff of a bank or other financial institution neglects his duty or
abuses his power to issue loans to other than his parties shall, if the major
loss is caused, be sentenced to a fixed-term imprisonment of not more than
five years or criminal detention, and be concurrently sentenced to a fine
ranging from 10,000 to 100,000 yuan; if the especially huge loss is caused,
he shall be sentenced to a fixed-term imprisonment of not less than five years
and be concurrently sentenced to a fine ranging from 20,000 to 200,000 yuan.

    Whichever working unit commits the crimes mentioned in the two proceeding
paragraphs shall be sentenced to a fine, and the direct responsible person in
charge and other direct responsible personnel shall be punished according to
the provisions of the two proceeding paragraphs.

    10. Any of the following categories of persons, for the sake of illegal
possession, swindles the loans of a bank or other financial institution with
relatively huge amount involved shall be sentenced to a fixed-term
imprisonment of not more than five years or criminal detention, and be
concurrently sentenced to a fine ranging from 20,000 to 200,000 yuan; if the
amount involved is huge or other circumstances are serious, he shall be
sentenced to a fixed-term imprisonment of not less than five years and not
more than ten years, and be concurrently sentenced to a fine ranging from
50,000 to 500,000 yuan; if the amount involved is especially huge or other
circumstances are especially serious, he shall be sentenced to a fixed-term
imprisonment of not less than ten years or life imprisonment, and be
concurrently sentenced to confiscation of  property:

    (1) Those who fabricate false reasons such as introduction of fund or
project;

    (2) Those who use false economic contracts;

    (3) Those who use false documents of certificate;

    (4) Those who use false property certificate as guarantee;

    (5) Those who swindle loans in other methods.

    11. Any of the following categories of persons who forge or alter the
financial documents shall be sentenced to a fixed-term imprisonment of not
more than five years or criminal detention, and be concurrently sentenced to
a fine ranging from 20,000 to 100,000 yuan; if the circumstances are serious,
he shall be sentenced to a fixed-term imprisonment of less than ten years or
life imprisonment, and be concurrently sentenced to confiscation of property:

    (1) those who forge or alter promissory bill, note of exchange and check;

    (2) those who forge or alter other bank settlement receipts such as
commission collection receipt, remittance receipt and bank deposit receipt;

    (3) those who forge or alter the letter of credit and attached notes or
documents;

    (4) those who forge the credit card.

    Whichever working unit commits the crimes mentioned in the proceeding
paragraph shall be sentenced to a fine, and the direct responsible person in
charge and other direct responsible personnel shall be punished according to
the provisions of the proceeding paragraph.

    12. Any of the following categories of persons who commit the swindling
activities of financial notes with relatively huge amount involved shall be
sentenced to a fixed-term imprisonment of not more than five years or criminal
detention, and be concurrently sentenced to a fine ranging from 20,000 to
200,000 yuan; if the amount involved is huge or other circumstances are
serious, he shall be sentenced to a fixed-term imprisonment of not less than
five years and not more than ten years, and be concurrently sentenced to a
fine ranging from 50,000 to 500,000 yuan; if the amount involved is especially
huge or other circumstances are especially serious, he shall be sentenced to a
fixed-term imprisonment of not less than ten years, life imprisonment or death
penalty, and be concurrently sentenced to confiscation of property:

    (1) those who use the knowingly forged or altered promissory bill, note of
exchange and check;

    (2) those who use the knowingly invalid promissory bill, note of exchange
and check;

    (3) those who falsely use other's promissory bill, note of exchange and
check as his own;

    (4) those who issue bounced check or check where the signature is
inconsistent with his reserved one to defraud the property;

    (5) those drawers of promissory bill or note of exchange who issue the
promissory bill or note of exchange without security of fund or produce a
false record on the note to defraud the property.

    Whoever uses the forged or altered other bank settlement receipts such as
commission collection receipt, remittance receipt and bank deposit receipt
shall be punished according to the provisions of the proceeding paragraph.

    Whichever working unit commits the crimes mentioned in the two proceeding
paragraphs shall be sentenced to a fine, and the direct responsible person in
charge and other direct responsible personnel shall be punished according to
the provisions of paragraph 1.

    13. Any of the following categories of persons who commit the swindling
activities of letter of credit shall be sentenced to a fixed-term imprisonment
of not more than five years or criminal detention, and be concurrently
sentenced to a fine ranging from 20,000 to 200,000 yuan; if the amount
involved is huge or other circumstances are serious, he shall be sentenced to
a fixed-term imprisonment of not less than five years and not more than ten
years, and be concurrently sentenced to a fine ranging from 50,000 to 500,000
yuan; if the amount involved is especially huge or other circumstances are
especially serious, he shall be sentenced to a fixed-term imprisonment of not
less than ten years, life imprisonment or death penalty, and be concurrently
sentenced to confiscation of property:

    (1) those who use the forged or altered letter of credit or attached notes
or documents;

    (2) those who use invalid credit card;

    (3) those who defraud letter of credit;

    (4) those who commit the swindling activities of letter of credit in
other methods.

    Whichever working unit commits the crimes mentioned in the proceeding
paragraph shall be sentenced to a fine, and the direct responsible person in
charge and other direct responsible personnel shall be punished according to
the provisions of the proceeding paragraph.

    14. Any of the following categories of persons who commit the swindling
activities of credit card with relatively huge amount involved shall be
sentenced to a fixed-term imprisonment of not more than five years or criminal
detention, and be concurrently sentenced to a fine ranging from 20,000 to
200,000 yuan; if the amount involved is huge or other circumstances are
serious, he shall be sentenced to a fixed-term imprisonment of not less than
five years and not more than ten years, and be concurrently sentenced to a
fine ranging from 50,000 to 500,000 yuan; if the amount involved is especially
huge or other circumstances are especially serious, he shall be sentenced to a
fixed-term imprisonment of not less than ten years or life imprisonment, and
be concurrently sentenced to confiscation of property:

    (1) those who use forged credit card;

    (2) those who use invalid credit card;

    (3) those who falsely use other's credit card as his own;

    (4) those who overdraw through malice.

    Whoever steals and uses credit card shall be punished in accordance with
the provisions of Criminal Law on crime of theft.

    15. Whoever from a bank or other financial institution against the
provisions offer others the letter of credit or other certificates of
guarantee, notes and certificates of credit status shall, if the relatively
huge loss is caused, be sentenced to a fixed-term imprisonment of not more
than five years or criminal detention; if the huge loss is caused, he shall be
sentenced to a fixed-term imprisonment of not less than five years.

    Whichever working unit commits the crimes mentioned in the proceeding
paragraph shall be sentenced to a fine, and the direct responsible person in
charge and other direct responsible personnel shall be punished according to
the provisions of the proceeding paragraph.

    16. Any of the following categories of persons who commit the swindling
activities of insurance with relatively huge amount involved shall be
sentenced to a fixed-term imprisonment of not more than five years or criminal
detention, and be concurrently sentenced to a fine ranging from 10,000 to
100,000 yuan; if the amount involved is huge or other circumstances are
serious, he shall be sentenced to a fixed-term imprisonment of not less than
five years and not more than ten years, and be concurrently sentenced to a
fine ranging from 20,000 to 200,000 yuan; if the amount involved is especially
huge or other circumstances are especially serious, he shall be sentenced to a
fixed-term imprisonment of not less than ten years, and be concurrently
sentenced to confiscation of property:

    (1) those insurance policy holders who intentionally fabricate the object
of insurance to defraud the insurance money;

    (2) those insurance policy holders, insurants or beneficiaries fabricate
false reason or exaggerate the degree of loss on the insurance accident to
defraud the insurance money;

    (3) those insurance policy holders, insurants or beneficiaries fabricate
the insurance accident which never happens to defraud the insurance money;

    (4) those insurance policy holders or beneficiaries intentionally cause
the insurance accident with the property loss to defraud the insurance money;

    (5) those insurance policy holders or beneficiaries intentionally cause
the death, disability or disease of the insurant to defraud the insurance
money.

    Whoever commits the activity listed in item (4), (5) of the proceeding
paragraph which also constitutes a crime shall be punished in accordance with
the provisions on combined punishment for several crimes of Criminal Law.

    Any expert witness, witness or  property adjuster of an insurance accident
who intentionally provides false documents of certificate and provides
conditions to others to swindle shall be punished as a joint crime of
insurance swindling.

    Whichever working unit commits the crimes mentioned in t paragraph 1 shall
be sentenced to a fine, and the direct responsible person in charge and other
direct responsible personnel shall be punished according to the provisions of
paragraph 1.

    17. Whoever from the staff of an insurance company takes advantage of his
duty's convenience to draw up intentionally an insurance accident which never
happens and to give an adjustment in order to defraud the insurance money
shall be punished respectively in accordance with relevant provisions of the
Supplementary Provisions Concerning the Punishment of the Crime of
Embezzlement and Bribery and the Decision on Punishment of the Crime Violating
Company Law by the Standing Committee of the National People's Congress.

    18. Whoever from the staff of a bank or other financial institution in
the course of the financial business activities extorts or accepts bribes, or
accepts whatever kind of rebate or commission shall be punished respectively
in accordance with relevant provisions of the Supplementary Provisions
Concerning the Punishment of the Crime of Embezzlement and Bribery and the
Decision on Punishment of the Crime Violating Company Law by the Standing
Committee of the National People's Congress.

    19. Whoever from the staff of a bank or other financial institution takes
advantage of his duties to misappropriate the funds of the working unit or
clients shall be punished respectively in accordance with relevant provisions
of the Supplementary Provisions Concerning the Punishment of the Crime of
Embezzlement and Bribery and the Decision on Punishment of the Crime Violating
Company Law by the Standing Committee of the National People's Congress.

    20. Whoever from the staff of a bank or other financial institution
colludes with the criminals engaged in the swindling of financial activities
described in this Decision and offers assistance to them with their swindling
activities shall be punished as a joint crime.

    21. Whoever commits the behaviors described in Article 2, Article 4,
Article 5, Article 11, Article 12, Article 14 and Article 16 of this Decision
which does not constitute a crime with minor circumstances may be imposed of
detention of not more than 15 days or a fine of not more than 5,000 yuan by
the department for public security.

    22. Any unlawful gains involved in the crimes against this Decision shall
be pursued or ordered to be returned to the sufferer; and any property and
material shall be confiscated.

    Any forged or altered currency, forged, altered or invalid note, letter
of credit, credit card or other bank settlement receipt shall be taken over
and to the People's Bank of China for centralized destruction.

    The detailed measures for taking over the forged or altered currency shall
be formulated by the People's Bank of China.

    23. The currency called in this Decision means Renminbi and foreign
currency.

    24. This Decision shall be implemented as of the date of promulgation.