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INTERIM MEASURES FOR THE ADMINISTRATION OF BOND LENDING AND BORROWING BUSINESS IN THE NATIONAL INTER-BANK BOND MARKET

Announcement of the People’s Bank of China

[2006] No.15

For the purpose of regulating the bond lending and borrowing business, safeguarding the legitimate rights and interests of market
participants, enhancing the market liquidity and improving the development of China’s bond market, the Interim Measures for the Administration
of Bond Lending and Borrowing Business in the National Inter-Bank Bond Market, which are formulated by the People’s Bank of China,
are hereby promulgated.

People’s Bank of China

November 2, 2006

Interim Measures for the Administration of Bond Lending and Borrowing Business in the National Inter-Bank Bond Market

Article 1

These Provisions are formulated according to the Law of the People’s Republic of China on the People’s Bank of China and the relevant
laws and administrative regulations for the purpose of regulating the bond lending and borrowing business directly performed among
the participants of national inter-bank bond market (hereinafter referred to as market participants), safeguarding the legitimate
rights and interests of market participants, enhancing market liquidity and improving the further development of bond market.

Article 2

Bond lending and borrowing business hereof referred to in these Measures is an act of bond accommodation that the bond receiver borrows
object bonds from the bond provider with pledge of certain quantity bonds, and simultaneously stipulate that the bond receiver shall
return the borrowed bonds and the bond provider shall return the pledge accordingly on a certain day in the future.

Article 3

All market participants may perform the bond lending and borrowing business.

Market participants shall, when engaging in the bond lending and borrowing business, abide by the principles of fairness, good faith
and undertaking risks by themselves, strengthen the corresponding management on internal authorization and external credit granting,
establish corresponding inner management system and operational procedure, and perfect the risk prevention mechanism.

Article 4

The object bonds in bond lending and borrowing shall be self-owned bonds by the bond provider and may be traded and circulated in
national inter-bank bond market.

Article 5

The term of bond lending and borrowing shall be determined by both parties of the lending and borrowing business through negotiation,
which shall not be more than 365 days at most.

Article 6

If the payment of interest on the object bonds occurred in the term of bond lending and borrowing, the bond receiver shall timely
return the interest of the object bonds to the bond provider.

Article 7

The receiver of bond lending and borrowing business shall pay fees for bond lending and borrowing to the provider, the standard of
charging rates shall be determined by both parties through negotiation.

Article 8

A market participant, when engaging in bond lending and borrowing business, may conclude a deal through the trading system of the
National Inter-Bank Funding Center (hereinafter referred to as Funding Center) or through telephone, fax and other methods. Where
the bond lending and borrowing business is not conducted through the Funding Center, both parties of the lending and borrowing business
shall register and filing at the local branch of the People’s Bank of China on the day when the deal is concluded, and send a copy
to the Funding Center at the same time. China Government Securities Depository Trust & Clearing Co. Ltd. (hereinafter referred
to as CDC) shall be in charge of the settlement of bond lending and borrowing. Both parties of the lending and borrowing business
shall send settlement instruction to the CDC on the day when the deal is concluded.

Article 9

Market participants, when engaging in bond lending and borrowing business, shall sign a lending and borrowing contract in written
form for each deal. The lending and borrowing contract shall stipulate specifically the name and quantity of the object bond, name
and quantity of the pledged bond, term of the bond lending and borrowing business, fees for bond lending and borrowing business,
replacement of pledged bond, payment of interest of the borrowed bonds during the lending and borrowing period and the solution of
dispute, and etc.

Article 10

When market participants engages in bond lending and borrowing business, the bond receiver shall provide full amount bonds to the
bond provider as pledge, and the pledged bonds shall be self-owned bonds that are entrusted to CDC for depository.

Article 11

The delivery of bond lending and borrowing shall be performed with object bonds When the time limit is due, however, it may be performed
with cash upon the negotiation and consent of both parties of the lending and borrowing business.

Article 12

Where the balance received by a single institution from bond lending and borrowing business exceeds 30% (including 30%) of the total
of its self-owned bonds entrusted or since the balance received from a single bond exceeds 15% (including 15%) of the quantity issued
of this bond, if every 5% increases, the said institution shall submit reports in written form to the Funding Center and CDC simultaneously
and explain the reasons.

Article 13

Where there is any breach of contract in a bond lending and borrowing business, both parties of the lending and borrowing business
may apply for arbitration or take legal proceedings at the people’s court in accordance with the stipulations in the contract, and
shall, before 12:00 of the next workday since the receipt of the final result of arbitration or litigation, submit the final result
to the Funding Center and CDC, the Funding Center and CDC shall make an announcement with respect to the result thereon on the day
when the final result is received.

Article 14

The Funding Center and CDC shall, in accordance with the provisions and authorizations of the People’s Bank of China, provide trading
and settling services for market participants engaging in bond lending and borrowing business, formulate corresponding rules about
the trading and settling of bond lending and borrowing business under these Provisions and implement the rules after reporting them
to the People’s Bank of China for filing.

Article 15

The Funding Center and CDC shall, pursuant to the provisions and authorizations of the People’s Bank of China, timely reveal the
relevant information on bond lending and borrowing to market participants, but may not divulge non-public information or mislead
the market participants.

Article 16

The Funding Center and CDC shall establish and perfect the corresponding risk monitoring system and pre-alert indicator system. The
Funding Center shall be in charge of the routine monitoring work on bond lending and borrowing trading, and CDC shall be responsible
for the routine monitoring work on bond lending and borrowing settling, they shall initiate the emergency mechanism where any unusual
circumstance is found and report to the People’s Bank of China.

The Funding Center and CDC shall submit the written report about the analysis of operation situation of bond lending and borrowing
business of the quarter within 10 workdays upon the end of each quarter.

Article 17

All branches of the People’s Bank of China shall enhance the communication with the Funding Center and CDC, and implement the routine
supervision and administration on the bond lending and borrowing business performed by market participants that come under their
jurisdiction.

Article 18

Where a market participant or the Funding Center or CDC violates these Provisions, it shall be penalized by the People’s Bank of
China subject to the provision of Article 46 of the Law of the People’s Republic of China on the People’s Bank of China.

Article 19

These Measures are subject to the interpretation of the People’s Bank of China.

Article 20

These Provisions shall enter into effect as of November 20, 2006.



 
People’s Bank of China
2006-11-02

 






DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON RATIFICATION OF THE CONVENTION ON OCCUPATIONAL SAFETY AND HEALTH AND THE WORKING ENVIRONMENT

Decision of the Standing Committee of the National People’s Congress on Ratification of the Convention on Occupational Safety and
Health and the Working Environment (1981)

October,10 2006

(Passed at the 24th meeting of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China on
October 31, 2006)

The 24th meeting of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China makes a decision:
to ratify the Convention on Occupational Safety and Health and the Working Environment (1981) adopted at the International Labor
Conference on June 22, 1981; at the same time, declares that the Convention on Occupational Safety and Health and the Working Environment
(1981) ‘may not be applicable to the Hong Kong Special Administrative Region of the People’s Republic of China for the time being
before the Government of the People’s Republic of China gives a separate notice.



 
The Standing Committee of the National People’s Congress
2006-10-31

 






DECISION OF THE STANDING COMMITTEE OF THE NPC CONCERNING THE AUTHORIZATION OF THE HONG KONG SAR TO EXERCISE JURISDICTION OVER ITS PORT ZONE WITHIN SHENZHEN BAY PORT

Decision of the Standing Committee of the NPC Concerning the Authorization of the Hong Kong SAR to Exercise Jurisdiction over Its
Port Zone within Shenzhen Bay Port

October 31, 2006

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

At the 23rd session of the Standing Committee of the 10th NPC of the People’s Republic of China, the proposal of the State Council
concerning the authorization of the Hong Kong SAR to exercise jurisdiction over its port zone within Shenzhen Bay Port is deliberated,
and at the 24th session of the Standing Committee of the 10th NPC of the People’s Republic of China, the draft decision concerning
the authorization of the Hong Kong SAR to exercise jurisdiction over its port zone within Shenzhen Bay Port is deliberated. The aforesaid
24th session holds that: for the purpose of easing the land customs clearance pressure which is brought about by the increasing exchanges
between the Mainland and the Hong Kong SAR, adapting to the objective requirement for facilitating transportation and customs clearance
between Shenzhen Municipality and the Hong Kong SAR, promoting the personnel exchanges as well as economic and trade exchanges between
the Mainland and the Hong Kong SAR, and promoting mutual economic development of both the Mainland and the Hong Kong SAR, it is necessary
to establish the Hong Kong port zone within Shenzhen Bay Port reserved for the use of customs clearance and inspection of persons,
transport vehicles and goods. The Standing Committee of the 10th NPC hereby decides that:

1.

As from the day when the Shenzhen Bay Port is opened for use, the Hong Kong SAR is authorized to exercise jurisdiction over its port
zone within Shenzhen Bay Port in accordance with the laws of the Hong Kong SAR.

The Hong Kong SAR shall exercise the FCA (Frontier Closed Area) administration over the Hong Kong port zone within Shenzhen Bay Port.

2.

The scope of the Hong Kong port zone within Shenzhen Bay Port shall be stipulated by the State Council.

3.

The land use term of the Hong Kong port zone within Shenzhen Bay Port shall, in accordance with the relevant laws, be determined by
the State Council.



 
the Standing Committee of the NPC
2006-10-31

 






DECISION OF THE STANDING COMMITTEE OF THE NPC CONCERNING THE MODIFICATION OF THE BANKING SUPERVISION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

Order of the President 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.



 
the Standing Committee of the NPC
2006-10-31

 






DECISION OF THE STANDING COMMITTEE OF THE NPC CONCERNING THE RATIFICATION OF THE TREATY OF NEIGHBORHOOD FRIENDSHIP AND COOPERATION BETWEEN THE PEOPLE’S REPUBLIC OF CHINA AND THE ISLAMIC REPUBLIC OF AFGHANISTAN

Decision of the Standing Committee of the NPC concerning the Ratification of the Treaty of Neighborhood Friendship and Cooperation
between the People’s Republic of China and the Islamic Republic of Afghanistan

October 31, 2006

(Adopted at the 24th Meeting of the Standing Committee of the 10th NPC on October 31, 2006)

At the 24th meeting of the Standing Committee of the 10th NPC, it is decided that the Treaty of Neighborhood Friendship and Cooperation
between the People’s Republic of China and the Islamic Republic of Afghanistan which is signed by President Hu Jintao on behalf of
the People’s Republic of China on June 19, 2006 is hereby ratified.



 
the Standing Committee of the NPC
2006-10-31

 






LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON ANTI-MONEY LAUNDERING

Order of the President of the People’s Public of China

No. 56

The Law of the People’s Republic of China on Anti-money Laundering adopted at the 24th session of the Standing Committee of the 10th
National People’s Congress of the People’s Republic of China is hereby promulgated and shall enter into effect as of January 1, 2007.

Hu Jingtao, President of the People’s Republic of China

October 31, 2006

Law of the People’s Republic of China on Anti-money Laundering

(Adopted at the 24th session of the Standing Committee of the 10th National People’s Congress)

Table of Contents
Chapter I General Provisions

Chapter II Supervision and Administration on Anti-money Laundering

Chapter III Obligations of Financial Institutions for Anti-money Laundering

Chapter IV Investigation on Anti-money Laundering

Chapter V International Cooperation on Anti-money Laundering

Chapter VI Legal Liabilities

Chapter VII Supplementary Provisions
Chapter I General Provisions

Article 1

For the purpose of preventing money-laundering, maintaining the financial order and restraining the crime of money-laundering and
other related crimes, the present Law is formulated.

Article 2

The term “anti-money laundering” as mentioned in the present Law refers to the act of adopting related measures in accordance with
the provisions of the present Law to prevent any money laundering activity so as to conceal or disguise, by all means, the sources
and nature of criminal proceeds generated from any drug crime, organized crime in the nature of gangland, crime of terrorism, crime
of smuggling, crime of corruption or bribery, crime of disrupting the financial management order, crime of financial fraud and etc..

Article 3

Financial institutions which are established within the territory of the People’s Republic of China or special non-financial institutions
that shall fulfill the obligations of anti-money laundering, shall adopt related prevention and supervision measures under law, establish
and improve the clients’ identity identification system, the preservation system of clients’ identity materials and transactional
records, the reporting system of large-sum transactions and doubtful transactions, and fulfill their respective anti-money laundering
obligations.

Article 4

The competent department for anti-money laundering of the State Council shall be responsible for anti-money laundering supervision
and administration throughout the country. The related departments and organs under the State Council shall, within their respective
scope of functions and duties, fulfill their obligations of anti-money laundering supervision and administration.

The competent department of anti-money laundering of the State Council, the related departments and organs under the State Council
and the judicial organs shall cooperate with each other in the anti-money laundering work.

Article 5

The identity material or transactional information of any client, which is acquired during the performance of the duties and functions
of anti-money laundering under law, shall be kept confidential. None of the aforesaid information may be provided to any entity or
individual unless it is admitted by related provisions of law.

The identity material and transactional information of any client, which is acquired by the competent department of anti-money laundering
or any other department or organ undertaking the obligation of anti-money laundering supervision and administration under law when
fulfilling their anti-money laundering functions and duties, shall only be used in the administrative investigation for anti-money
laundering.

The identity material and transactional information of any client as acquired by the judicial organ according to the present Law shall
only be used in the criminal litigation on anti-money laundering.

Article 6

The submission of a report on large-sum transaction or doubtful transaction under law by any organ or functionary bearing the anti-money
laundering obligation, shall be protected by law.

Article 7

In case any entity or individual finds any money laundering activity, it/he has the right to tip it off to the competent department
of anti-money laundering or to the public security organ. The organ accepting the tip-off shall keep confidential the tip-off maker
as well as the tipped￿Coff contents.

Chapter II Supervision and Administration on Anti-money Laundering

Article 8

The competent department for anti-money laundering of the State Council shall organize and coordinate the anti-money laundering work
throughout the country, take charge of the supervision over anti-money laundering funds, formulate the related anti-money laundering
regulations of financial institutions by itself or in collaboration with the related financial regulatory bodies under the State
Council, undertake supervision and examination on the performance of anti-money laundering obligations by financial institutions,
investigate into doubtful transactions within the power limit of its functions and duties, and fulfill other duties and functions
of anti-money laundering prescribed by law or by the State Council.

The organs dispatched by the competent department for anti-money laundering of the State Council shall, within their respective power
limits as authorized by the competent department for anti-money laundering of the State Council, undertake supervision and examination
on the performance of anti-money laundering obligations by financial institutions.

Article 9

The related financial supervision and administration institutions under the State Council shall take part in the formulation of anti-money
laundering regulations for financial institutions under their respective supervision and administration, require them to establish
and improve an internal control system of anti-money laundering and fulfill other duties and functions of anti-money laundering as
prescribed by law or by the State Council.

Article 10

The competent department for anti-money laundering of the State Council shall establish an Anti-money Laundering Information Center
to be responsible for accepting and analyzing the reports on large-sum transactions and doubtful transactions, report the analysis
results to the competent department for anti-money laundering of the State Council in light of the related provisions, and fulfill
other functions and duties as prescribed by the competent department for anti-money laundering of the State Council.

Article 11

The competent department for anti-money laundering of the State Council, in order to fulfill its duties and functions of supervising
anti-money laundering funds, may collect necessary information from related departments and organs of the State Council, which shall
provide assistance.

The competent department for anti-money laundering of the State Council shall circulate the anti-money laundering work to related
departments and organs of the State Council on a periodical basis.

Article 12

If the customs finds that any cash or secret securities carried by an individual exceed the prescribed sum, it shall report the case
to the competent department for anti-money laundering in a timely manner.

The standards of amount that shall be circulated in the preceding paragraph shall be prescribed by the competent department of anti-money
laundering of the State Council in conjunction with the General Administration of Customs.

Article 13

If the competent department for anti-money laundering or any other department or organ undertaking the obligation of anti-money laundering
supervision and administration under law finds any transaction involved in the crime of money laundering, it shall report it to the
investigation organ in time.

Article 14

If the related financial supervision and administration institution under the State Council conducts examination and approval of
the establishment of a new financial institution or establishment of any branch or sub-branch of a financial institution, it shall
examine the internal control system of anti-money laundering of the new institution and may not approve any application for establishment
that fails to accord with the provisions of the present Law.

Chapter III Obligations of Financial Institutions for Anti-money Laundering

Article 15

Financial institutions shall, in accordance with the provisions of the present Law, establish and improve their internal control
systems for anti-money laundering, and the principal thereof shall be responsible for the effective implementation of their internal
control systems for anti-money laundering.

Financial institutions shall establish special institutions of anti-money laundering or designate internal departments to be responsible
for anti-money laundering.

Article 16

Financial institutions shall establish a clients’ identity identification system in accordance with the related provisions.

If any financial institution establishes business relationship with a client or provides one-off financial services such as cash remittance,
cash conversion and bill payment beyond the prescribed amount, it shall require the client to show its/his authentic and effective
identity certificate or any other identity certification document, and make related verification and registration.

If a client entrusts an agent to deal with the transaction on its/his behalf, the related financial institution shall make verification
and registration of the identity certificates or other identity certification documents of both the agent and the principal at the
same time.

If a financial institution establishes business relationship of personal insurance or trust with his client, in case the contractual
beneficiary is not the client himself, the financial institution shall make verification and registration of the identity certificate
or any other identity certification document of the beneficiary as well.

Financial institutions may not provide any service to or make any trade with any client who fails to clarify his identity or establish
any anonymous or pseudonymous account.

If a financial institution has any doubt about the authenticity, effectiveness or integrality of a client’s identity material, it
shall check the client’s identity again.

In case any entity or individual establishes business relationship with any financial institution or requires it to provide any one-off
financial service, it/he shall provide its/his authentic and effective identity certificate or any other identity certification document.

Article 17

If a financial institution certifies the identity of its client through a third party, it shall be assured that the third party has
adopted measures for clients’ identity clarification as prescribed by the present Law. In case any third party fails to adopt the
measures for the clients’ identity clarification as prescribed by the present Law, the financial institution shall bear the liabilities
for its failure to fulfill the obligation of clarifying the client’s identity.

Article 18

Financial institutions when conducting the clarification of its clients’ identities, may, if it so requires, verify the related identity
information with departments such as the public security organ and the competent department for industry and commerce.

Article 19

Financial institutions shall establish a preservation system for its clients’ identity materials and transaction records.

During the existence of business relationship, any client’s identity material that changes shall be updated in time.

After the conclusion of any business relationship or transaction, the related clients’ identity materials or clients’ transaction
information shall be kept for at least 5 years.

If a financial institution goes bankrupt or is dissolved, it shall transfer the related clients’ identity materials and transaction
records to the institution designated by the related department of the State Council.

Article 20

Financial institutions shall, in light of the related provisions, carry out the reporting system of large-sum transactions and doubtful
transactions.

If any single transaction handled by a financial institution or the accumulated transaction within a prescribed time limit goes beyond
the prescribed sum, or if any doubtful transaction is found, it shall be timely reported to the Anti-money Laundering Information
Center.

Article 21

The specific measures for a financial institution to establish a clients’ identity clarification system and a preservation system
for its clients’ identity materials and transactional records shall be formulated by the competent department for anti-money laundering
of the State Council in conjunction with the related financial supervision and administration institution under the State Council.
The specific measures for reporting large-sum transactions and doubtful transactions by financial institutions shall be formulated
by the competent department for anti-money laundering of the State Council.

Article 22

Financial institutions shall, in light of the requirements for anti-money laundering prevention and supervision, carry out anti-money
laundering trainings and drumbeating.

Chapter IV Investigation on Anti-money Laundering

Article 23

If the competent department of anti-money laundering of the State Council or any its provincial dispatched organs finds any doubtful
transaction, if an investigation and verification is therefore required, it may conduct an investigation into the related financial
institutions which shall provide assistance and faithfully provide the related documents and materials.

For the investigation into any doubtful transaction, there shall be not less than 2 investigators, who shall show their legal certificates
and the investigation notice produced by the competent department for anti-money laundering of the State Council or the organ dispatched
thereof at the provincial level. In case the investigators are fewer than 2, or the related legal certificate or investigation notice
fails to be shown, the financial institution subject to investigation has the right to refuse the investigation.

Article 24

For the investigation into any doubtful transaction, the related investigators may inquire of the related personnel of related financial
institutions about related information.

A transcript shall be made for an inquiry, and shall be checked against the person being inquired. In the case of any omission or
mistake in the transcript, the person being inquired may request for supplementation or correction. After the person being inquired
confirms that the transcript is inerrant, he shall render his signature or seal thereto. And the related investigators shall render
their signatures onto the transcript as well.

Article 25

If a further examination is required during an investigation, the investigator may, upon the approval of the principal of the competent
department for anti-money laundering of the State Council or the organ dispatched thereof at the provincial level, consult and photocopy
the related account information, transactional records and any other related materials of the inquired institution or persons, and
may seal up any document or material that may be transferred, concealed, sophisticated or destroyed.

If an investigator seals up any document or material, he shall, together with the related personnel of the investigated financial
institution on the spot, check them out and produce a checklist in duplicate, to which the signatures or seals of investigators and
personnel of the financial institutions on the spot shall be rendered. One copy shall be delivered to the financial institution,
and the other be attached to the related file for reference.

Article 26

In case any suspicion of money laundering can still not be cleared off upon investigation, the case shall be reported to the competent
investigation organ immediately. If any client requires transferring the account capital as involved in the investigation to a foreign
country, temporary freezing measures may be adopted, upon the approval of the principal of the competent department for anti-money
laundering of the State Council.

After the investigation organ receives a case, it shall timely decide whether or not to further freeze the capital as temporarily
frozen up in accordance with the provisions of the preceding paragraph. If it deems that it is necessary to continue freezing the
capital, freezing measures shall be adopted according to the provisions of the Criminal Litigation Law. In case it deems that it
is unnecessary to freeze the capital any more, it shall immediately notify the competent department for anti-money laundering of
the State Council, which shall immediately notify the related financial institution to lift the freeze.

The temporary freezing shall not exceed 48 hours. If a financial institution does not receive any notice on continuing freezing from
the investigation organ within 48 hours after it adopts temporary freezing measures pursuant to the requirements of the competent
department for anti-money laundering of the State Council, it shall immediately lift the freeze.

Chapter V International Cooperation on Anti-money Laundering

Article 27

The People’s Republic of China shall, in light of the international treaties that China has concluded or acceded to or according
to the principles of equality and reciprocity, carry out the international cooperation on anti-money laundering.

Article 28

The competent department for anti-money laundering of the State Council shall, pursuant to the authorization of the State Council,
represent the Chinese government to make anti-money laundering cooperation with foreign governments and related international organizations,
exchange the related information and materials involved in anti-money laundering with overseas anti-money laundering institutions
under law.

Article 29

Juridical assistance for investigation into any crime of money laundering shall be made by the judicial organ in accordance with
the provisions of related laws.

Chapter VI Legal Liabilities

Article 30

If any functionary of the competent department for anti-money laundering or any other department or organ undertaking the functions
and duties of anti-money laundering supervision and administration is under any of the following circumstances, an administrative
sanction shall be imposed upon under law:

(1)

making examination, investigation or adopting any temporary freezing measures in violation of the related provisions;

(2)

divulging any state secret, commercial secret or individual privacy, which he has access to in his anti-money laundering work;

(3)

imposing any administrative punishment on the related institution and personnel in violation of the related provisions; or

(4)

having any act of failing to perform his duties and functions under law.

Article 31

If a financial institution has any of the following acts, the competent department for anti-money laundering of the State Council
or the dispatched organ authorized thereof at or above the districted city level shall order it to make corrections within a time
limit. If the circumstance is serious, it shall advise the related financial supervision and administration institution to order
the related financial institution to give a disciplinary sanction to its directly liable chairperson, senior managers or any other
person directly responsible under law:

(1)

failing to establish an internal control system of anti-money laundering according to the related provisions;

(2)

failing to establish a special institution for anti-money laundering or designate an internal department to take charge of anti-money
laundering; or

(3)

failing to conduct anti-money laundering trainings to its employees according to the related provisions.

Article 32

If a financial institution is under any of the following circumstances, the competent department for anti-money laundering of the
State Council or the dispatched organ authorized thereof at or above the districted city level shall order it to make corrections.
If the circumstance is serious, a fine of 20, 000 Yuan up to 50, 000 Yuan shall be imposed on the financial institution and a fine
of 10, 000 Yuan up to 50, 000 Yuan shall be imposed upon its directly liable chairman, senior managers or any other person directly
responsible:

(1)

failing to fulfill the obligation of certifying any clients’ identity according to the related provisions;

(2)

failing to preserve the clients’ identity materials and transactional records according to the related provisions;

(3)

failing to make related reports on large-sum transactions or doubtful transactions according to the related provisions;

(4)

trading with any client who fails to clarify its/his identity or establishes any anonymous account or pseudonymous account therefor;

(5)

violating the related confidential provisions or divulging any related information;

(6)

refusing or retarding any anti-money laundering examination or investigation; or

(7)

refusing to provide any investigation material or providing any false material on purpose.

If a financial institution has any of the aforesaid acts and thus results in the consequence of money laundering, a fine of 500, 000
Yuan up to 5, 000, 000 Yuan shall be imposed upon the financial institution and a fine of 50, 000 Yuan up to 500, 000 Yuan shall
be imposed upon its directly liable chairman, senior managers or any other person directly responsible. If the circumstance is serious,
the competent department for anti-money laundering may advise the related financial supervision and administration institution to
order the financial institution to suspend its business for rectification or to revoke its business license.

As to the directly liable chairman, senior managers or any other person directly responsible of a financial institution as prescribed
in the preceding two paragraphs, the competent department of anti-money laundering may advise the related financial supervision and
administration institution to order the financial institution to give a disciplinary sanction thereto or revoke his qualification
to hold a post and prohibit him from engaging in any financial work.

Article 33

If anyone violates the provisions of the present Law and thus a crime is constituted, he shall be subject to criminal liabilities
under law.

Chapter VII Supplementary Provisions

Article 34

“Financial institutions” as mentioned in the present Law refer to the policy banks, commercial banks, credit cooperatives, post savings
institutions, trust investment companies, securities companies, futures brokerage companies, insurance companies and any other institution,
which have been determined and publicized by the competent department for anti-money laundering of the State Council to engage in
financial undertakings.

Article 35

The scope of the special non-financial institutions that shall perform the obligation of anti-money laundering, the specific anti-money
laundering obligations thereof and the specific measures for supervision and administration on special non-financial institutions
shall be formulated by the competent department for anti-money laundering of the State Council in conjunction with the related departments
of the State Council.

Article 36

The supervision over any fund suspected of being involved in any terrorism activity shall be subject to the present Law. If there
is any other provision in this regard, such provision shall prevail.

Article 37

The present Measures shall enter into effect as of January 1, 2007.



 
The Standing Committee of the National People’s Congress
2006-10-31

 






CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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