Laws of the People's Republic of China

the People's Bank of China

Order of the People's Bank of China

No.3

According to the relevant laws and regulations such as the Law of the People's Republic of China on the People's Bank of China, the People's Bank of China has formulated the Interim Measures for the Administration of the Basic Data of Individual Credit Information, adopted at the 11th president's executive meeting of the People's Bank of China on June 16, 2005, are hereby promulgated and shall go into effect as of October 1, 2005.

President of the People's Bank of China, Zhou Xiaochuan

August 18, 2005

Interim Measures for the Administration of the Basic Data of Individual Credit Information

Chapter I General provisions

Article 1

With a view of safeguarding the financial stability, preventing and lowering the credit risk of commercial banks, promoting the development of individual credit business and safeguarding the security of individual credit information as well as the legal use thereof, the present measures are formulated in accordance with the relevant laws and regulations such as the Law of the People's Republic of China on the People's Bank of China.

Article 2

The People's Bank of China shall be responsible for organizing commercial banks to establish the basic database of individual credit information (hereinafter referred to as the individual information database), and establishing the credit service center and shall perform the duties of the daily operation and management of the individual information database.

Article 3

The individual information database shall be used for collecting, processing and saving individual credit information, provide the credit inquiry service for commercial banks and individuals and provide the relevant information services for the formulation of monetary policies, financial administration and supervision as well as any other purpose as prescribed by laws or regulations.

Article 4

The term "individual credit information" as mentioned in the present Measures refers to basic individual information, individual information on credit transactions and any other information that may reflect the individual credit status.

The term "basic individual information" as mentioned in the preceding paragraph refers to such information as the identity, career and residential address of a natural person. The term "individual information on credit transactions" refers to the transaction records as provided by commercial banks, which are formed in the credit activities of a natural person such as loans, credit cards, quasi-credit cards and guaranty. The term "any other information that may reflect the individual credit status" refers to the relevant information that reflects the individual credit information, apart from the information on credit transactions.

Article 5

The People's Bank of China, commercial banks and the staff thereof shall keep secret the individual credit information as known in the relevant work.

Chapter II Submission and Processing

Article 6

The commercial banks shall comply with the standards of the individual credit database and the relevant requirements thereof as announced by the People's Bank of China, and submit the individual credit information to the individual credit database in an accurate, complete and timely manner.

Article 7

Any commercial bank may not provide any individual credit information to any individual credit database that fails to be established upon the approval of the credit administration department or in any disguised form.

Article 8

The service credit center shall establish sound rules and regulations and apply to advanced technical means to ensure the security of individual credit information.

Article 9

The credit service center shall, as the credit report requires, objectively process and keep the individual credit information as submitted by commercial banks and may not illegally alter any original data.

Article 10

In case of any doubt about the information as reported by a commercial bank, the credit service center shall send a review notice to the commercial bank concerned in a timely manner in accordance with the relevant procedures as prescribed.

The commercial bank concerned shall make a reply within 5 workdays as of the date of receipt of the review notice.

Article 11

Where a commercial bank finds that the individual credit information it has submitted is inaccurate, it shall timely report the matter to the credit service center. The credit service center shall immediately make correction upon receiving the error-correcting report.

Chapter III Inquiry

Article 12

A commercial bank may inquire about the relevant individual credit report in the individual credit database when handling the following businesses:

(1)

Examining an application for individual loan;

(2)

Examining an application for individual credit card or semi-credit card;

(3)

Examining an individual to be a guarantor;

(4)

Carrying out post-loan risk management for any individual loan as granted; or

(5)

Accepting the application of a legal person or any other organization for a loan or being a guarantor, which requires inquiring the credit status of the legal-person and capital contributor.

Article 13

Apart from the provisions of item (4) of Article 12 of the present Measures, a commercial bank shall obtain a written authorization from the inquired person before inquiring about the individual credit report. The written authorization may be obtained by means of adding the relevant clause to the application for a loan, credit card, semi-credit card or guaranty.

Article 14

A commercial bank shall establish an internal authorization system of inquiring about the individual credit report for post-loan risk management and work out the procedures for the inquiry management.

Article 15

The credit service center may, according to an individual's application, provide the paid individual credit report of the applicant.

The credit service center shall formulate the corresponding handling procedures and verify the identity of the relevant applicant.

Chapter IV Treatment of Demurrals

Article 16

In case an individual believes that there is a mistake in the credit information in his credit report (hereinafter referred to as the information with demurral), he may file a written application of demurral directly with the credit service center or through the credit administration department of the People's Bank of China at his locality.

The credit administration department of the People's Bank of China shall, within 2 workdays from the date of receipt of the application, forward the demurral to the credit service center.

Article 17

The credit service center shall carry out an internal verification within 2 workdays from the date of receipt of the demurral application.

If the credit service center finds out that the information with demurral is caused in the procedures of handling the information of the individual credit database, it shall immediately make correction and examine the existing problem in the handling procedures or operating procedures of the individual credit database.

Article 18

If the credit service center does not find any problem in the handling procedures of the individual credit database through internal verification, it shall immediately inform, in writing, the commercial bank that has provided the relevant information to make verification.

Article 19

A commercial bank shall, within 10 workdays from the date of receipt of the verification notice, give a written reply on the verification to the credit service center. In case there does exist any mistake in the information with demurral, the bank shall take the following measures:

(1)

Submitting the corrected information to the credit service center;

(2)

Examining the procedures for submitting the individual credit information; and

(3)

Conducting an examination on the other succeeding individual credit information that has submitted at late time and in the case of any mistake, submitting the corrected information.

Article 20

The credit service center shall, within 2 workdays from the date of receipt of the corrected information newly reported by a commercial bank, correct the information with demurral.

For any information with demurral that does have a mistake but cannot be corrected due to technical reasons for the time being, the credit service center shall mark the said information particularly as distinguished from any other information with demurral.

Article 21

If the existing mistake in information with demurral cannot be confirmed upon verification, the credit service center may not alter the relevant individual credit information according to the requirements of the applicant.

Article 22

The credit service center shall, within 15 workdays from the date of receipt of an application of demurral, give a written reply to the applicant who has filed the demurral or the credit administration department of the People's Bank of China that has forwarded the application of demurral, and shall, upon the correction of the information with demurral, provide the corrected credit report at the same time.

For the information with demurral that does have a mistake but cannot be corrected due to any technical reason for the time being, the credit service center shall give an explanation in its written reply and shall, upon the correction of the information with demurral, provide the corrected credit report.

Article 23

The credit administration department of the People's Bank of China that has forwarded the application of demurral shall, within 2 workdays from the date of receipt of the said written reply and the corrected credit report from the credit service center, forward the documents to the applicant concerned who has filed the demurral.

Article 24

For any information with demurral that cannot be verified, the service credit center shall allow the applicant who has filed the demurral to append a personal statement of no more than 100 words to the information with demurral. The personal statement may not cover any content that is irrelevant to the information with demurral and the applicant shall be responsible for the authenticity thereof.

The credit service center shall keep properly the original archive of the personal statement and incorporate the personal statement into the credit report of the demurrer.

Article 25

The credit service center shall mark the information that is in the demurral treatment process.

Chapter V Security Management

Article 26

A commercial bank shall, in accordance with the relevant provisions of the People's Bank of China, establish a internal management system and formulate operating instructions in such aspects as report, inquiry, use, demurral treatment and security management of credit information and shall report them to the People's Bank of China for the record.

Article 27

A commercial bank shall establish a user management system, specifying the duties of administrators, data submission users and inquiry users as well as the operating instructions.

No one may concurrently hold the posts of an administrator, data submission user or inquiry user.

Article 28

An administrator of a commercial bank shall, according to the operating instructions, open corresponding account for an authorized person. An administrator may not directly make any inquiry about individual credit information.

An administrator shall intensify the daily administration of the inquiry users and data submission users at the same level as well as the administrators at a lower level. In case the staff of inquiry user is transferred, the user account shall be terminated immediately.

Article 29

The administrator, data submission users and inquiry users of commercial banks shall be reported to the credit administration department of the People's Bank of China and the credit service center for the record.

In the case of any alteration of the staff as prescribed in the preceding paragraph, a commercial bank shall report it to the credit administration department of the People's Bank of China and the credit service center for the record within 2 workdays.

Article 30

A commercial bank shall establish a password control system for administrators and inquiry users and shall periodically check the implementation of the password control.

Article 31

A commercial bank shall establish a management system for the security of individual credit information so as to ensure that only internal authorized personnel may have access to the individual credit report, and may not use the individual credit report for any other purpose except those as prescribed by Article 12 of the present Measures.

Article 32

The credit service center shall establish the management system and formulate operating instructions in such aspects as the collection, processing, storage, inquiry, demurral treatment, user management and security management, specify the duties of all posts, improve the internal control system and guarantee the normal operation of the individual credit database and the security of individual credit information.

Article 33

The credit service center and the personnel thereof may not violate the provisions of any law or regulation or the present Measures by altering, damaging, divulging or unlawfully using any individual credit information and may not viciously collude with any natural person, legal person or any other organization to provide any false credit report.

Article 34

The credit service center shall establish a supervision system concerning the internal operation of and external access to the individual credit database to supervise the operations conducted by users of the individual credit database as well as commercial banks and prevent any illegal invasion into the individual credit database.

Article 35

The credit service center shall establish a spare system to prevent system disasters and take necessary safeguarding measures to prevent any loss of data.

Article 36

The credit service center shall record all the inquiries conducted by commercial banks and shall timely feed them back to commercial banks.

Article 37

A commercial bank shall frequently examine the inquiries of the individual credit database to ensure that all inquiries comply with the provisions of the present Measures and shall periodically report the results of the examination on inquiries to the People's Bank of China and the credit service center.

The credit service center shall periodically verify the inquiries of the individual credit database made by commercial banks.

Chapter VI Penalties Provisions

Article 38

Where a commercial bank fails to establish the relevant management system and formulate operational instructions according to the present Measures, the People's Bank of China shall order it to correct. Where a commercial bank fails to correct within the time limit, it shall be given a warning and fined 30, 000 yuan.

Article 39

Under any of the following circumstances, a commercial bank shall be ordered to correct and be fined 10, 000 yuan but no more than 30, 000 Yuan. If a crime is involved, the case shall be transferred to the judicial organ according to law:

(1)

Violating the present Measures by failing to submit the individual credit information in an accurate, complete and timely manner;

(2)

Violating the provisions of Article 7 of the present Measures;

(3)

Inquiring about the individual credit data beyond the power;

(4)

Misusing the inquiry result for any other purposes other than those as prescribed by the present Measures;

(5)

Violating the provisions on demurral treatment; or

(6)

Violating the requirements of security management of the present Measures.

Article 40

Where a commercial bank is under any of the following circumstances as prescribed by Articles 38 and 39, the People's Bank of China may suggest that the relevant commercial bank shall give a disciplinary punishment to the director of board, senior management personnel and any other person as held directly liable. If a crime is involved, the case shall be transferred to the judicial organ according to law.

Article 41

Where a staff member of the credit service center is under any of the following circumstances, he shall be given an administrative punishment. If a crime is involved, he shall be transferred to the judicial organ according to law:

(1)

Violating the provisions of the present Measures by altering, damaging, divulging or illegally using the individual credit information; or

(2)

Viciously colluding with any natural person, legal person or any other organization to provide false credit report.

Article 42

Where any other staff member of the People's Bank of China has any act in violation of the present Measures, which causes divulgence of individual credit information, he shall be given an administrative punishment, and if a crime is involved, the case shall be transferred to the judicial organ according to law.Chapter VII. Supplementary Provisions

Article 43

The term "commercial banks" as mentioned in the present Measures refers to the commercial banks, urban credit cooperatives, rural credit cooperatives as well as any other financial institutions that specialize in credit business as approved by the banking regulatory commission of the State Council.

Article 44

The power to interpret the present Measures shall be vested in the People's Bank of China.

Article 45

The present Measures shall go into effect as of October 1, 2005.