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SPP publishes authoritative financial crime cases list
Practical Law UK Legal Update 9-619-4865 (Approx. 3 pages)
The Supreme People's Procuratorate (SPP) has published a list of authoritative decisions in six cases of financial crime in China, including insider trading, tax evasion, the misuse of a structured product and fraud in internet finance fundraising.
On 23 September 2015, the Supreme People's Procuratorate (SPP) held a press conference to discuss the situation concerning financial crime and published the Typical Cases of Financial Crimes Prosecuted by the Procuratorial Authority in accordance with Law 2015, containing summaries of six financial crime cases prosecuted in 2014. The SPP is China's highest prosecutorial supervision authority. According to the SPP, these authoritative cases demonstrate the urgency of addressing various prosecutorial issues involving white collar crime in China, as well as the legal basis for prosecuting these crimes. The six cases include:
- Three non-public information or insider trading cases.
- An evasion case where the accused fraudulently manipulated China's recent free trade zone financial reforms.
- A case involving the misuse of an innovative financial product to implement a fraudulent loan scheme.
- A fraudulent fund raising case where the accused exploited China's nascent regulatory environment in the internet finance sector.
According to the SPP, these authoritative cases illustrate the need to:
- Implement similar sentences in similar situations, for consistency's sake.
- Increase awareness surrounding the rule of law.
- Improve the level of co-operation between companies and regulators.
- Understand the differences between domestic and foreign trade regulatory systems.
- Encourage financial institutions to develop a sound risk control mechanism when marketing new financial products.
- Strengthen the law on new financial products and financial services such as P2P and crowdsourcing.
- Reach a consensus on the handling of evidentiary standards and applicable legal issues for securities crimes.
Source: Supreme People's Procuratorate, Typical Cases of Financial Crimes Prosecuted by the Procuratorial Authority in accordance with Law 2015 (最高检公布金融犯罪典型案例)