CCP Regulator Issued More Than 10,000 Fines to Financial Institutions in 2022, With a Total Penalty of $400 Million

According to media reports, in 2022, CCP’s Finance Regulator fined banks in Communist China over 7,500 times with a total penalty of more than $400 million and non-banking financial institutions over 4000 times with a total penalty of nearly 600 million. The CCP-owned Rural Commercial Bank tops the list in terms of the total penalty amounts, whereas the Agricultural Bank of China received the most fines, followed by the Industrial and Commercial Bank of China, and the Postal Savings Bank of China. Banks were mostly fined in their practice in the credit area, whereas non-banking institutions were fined due to transactions in violation of regulations, including illegal remittance of foreign exchange into China, and stock speculation practice known as “rat warehouse”, in which fund managers bought stocks with their own funds before using clients’ funds under own control to drive up the corresponding stock price, and then profit from selling the stocks at higher prices. The amount is relatively large, and non-banking institutions received far more fines than banks. Among different types of non-bank institutions in 2022, insurance institutions were the most heavily fined with about 3,000 fines and 278 million in penalties, notably including insurance giants People’s Insurance Company of China, China Life Insurance and China Life Property Insurance, followed by securities and private investment companies. Analysts commented that the banks and financial institutions in Communist China were merely just a disposable tool for the CCP kleptocrats to launder and collect money, and will eventually serve as scapegoats when the “ruling machine” needs it.