Provisions on the Administration of Financial Institutions' Assistance in Inquiry, Freezing, and Deduction Work

Article 1 These regulations are formulated in accordance with the provisions of the "People's Republic of China Commercial Bank Law" and other relevant laws and administrative regulations in order to regulate the conduct of financial institutions in assisting competent organs in inquiring, freezing, and deducting deposits made by units and individuals in financial institutions.

The term "assisting in inquiry, freezing, and deducting deposits" mentioned in these regulations refers to the behavior of financial institutions in assisting the competent authorities in inquiring, freezing, and deducting deposits made by units or individuals in financial institutions in accordance with the law.

Assisting in inquiry refers to the act of a financial institution informing the competent authority of the amount, currency and other deposit information of a unit or individual in accordance with the provisions of relevant laws or administrative regulations and the requirements of the competent authority for inquiry.

Assisting in freezing refers to the act of a financial institution prohibiting a unit or individual from withdrawing all or part of the deposits in its deposit account for a certain period of time in accordance with the provisions of the law and the requirements of the competent authority for freezing.

Assisted deduction refers to the act of a financial institution transferring all or part of the deposit funds in the deposit account of a unit or individual to a designated account in accordance with the provisions of the law and the requirements of the competent authority.

The term "financial institutions" mentioned in these regulations refers to financial institutions (including foreign-funded financial institutions) that operate deposit business in accordance with the law, including policy banks, commercial banks, urban and rural credit cooperatives, finance companies, postal savings institutions, and so on.

Financial institutions assisting in inquiring, freezing, and deducting deposits shall handle it specifically at the business branch where the depositor has opened an account.

Article 4 The competent organs mentioned in these regulations refer to the judicial, administrative, and military organs and public institutions exercising administrative functions that have the right to inquire, freeze, and deduct the deposits of units or individuals in financial institutions in accordance with the clear provisions of laws and administrative regulations (see the attached table for details).

Article 5: Assisting in inquiry, freezing, and deducting shall follow the principles of compliance with laws and regulations, and not harming the lawful rights and interests of customers.

Financial institutions shall do a good job of assistance work in accordance with the law, establish and improve relevant rules and regulations, and earnestly strengthen the management of assistance in inquiry, freezing, and deduction.

Financial institutions shall designate full-time departments or full-time personnel in their business establishments to be responsible for receiving and requesting assistance in inquiry, freezing, and deducting funds, handling assistance matters in a timely manner, and paying attention to guarding state secrets.

Article 8 When handling the business of assisting in inquiry, the personnel handling the case shall verify the work certificates of the law enforcement personnel and the notice of assistance in making inquiries issued by the competent organ at or above the county and regiment level (inclusive, the same below).

Article 9 When handling the business of assisting in freezing, the personnel handling the financial institution shall verify the following documents and legal documents:

(1) The work ID of the law enforcement personnel of the competent organs;

(2) Where laws or administrative regulations provide that a notice of assistance in freezing deposits issued by an organ with authority at or above the county or regiment level shall be signed by the principal responsible person of the organ with authority, it shall be signed by the principal responsible person;

(3) A ruling on freezing deposits issued by a people's court or a decision to freeze deposits issued by other competent organs.

Article 10 When handling the business of assisting in deduction and transfer, the personnel handling the financial institution shall verify the following documents and legal documents:

(1) The work ID of the law enforcement personnel of the competent organs;

(2) Where laws and administrative regulations provide that the notice of assistance in deducting deposits issued by an institution at or above the county or regiment level of the competent organ shall be signed by the principal responsible person of the competent organ;

(3) Relevant effective legal documents or relevant decisions of administrative organs.

Article 11 When assisting in freezing or deducting the deposits of units or individuals, financial institutions shall examine the following contents:

(1) The name, account name and account number of the financial institution that needs to be frozen or deducted from the deposit, and the amount of upper and lower case amount filled in the "Notice of Assistance in Freezing or Deducting Deposits";

(2) The obligor on the notice of assistance in freezing or withholding deposits shall be the same as the obligor on the legal document on which it is based;

(3) The amount frozen or deducted on the notice of assistance in freezing or deducting deposits shall be determined. If it is found that there is a lack of attached legal documents, or that the relevant contents of the legal documents are inconsistent with the contents of the "Notice of Assistance in Freezing and Withholding Deposits", the reasons should be explained and the "Notice of Assistance in Freezing and Withholding Deposits" or the attached legal documents should be returned.

If the competent authority is unable to provide the account number of the individual depositor, the financial institution shall require the competent authority to provide the individual's resident identification number or other circumstances sufficient to determine the individual's deposit account.

Financial institutions shall, in accordance with the provisions of the internal control system, establish and improve a registration system for assisting in the work of inquiry, freezing, and deduction.

When assisting the competent authority in handling the formalities of inquiry, freezing and deduction, the financial institution shall register the following circumstances: the name of the competent authority, the name and certificate number of the law enforcement personnel, the name of the person handling the financial institution, the name or name of the entity or individual being inquired, frozen or deducted, the time and amount of assistance in the inquiry, freezing and deduction, the name and document number of the relevant legal documents, and the results of the assistance.

The registration form shall be filled out when assisting in handling the formalities for inquiry, freezing, or deduction, and shall be signed by the law enforcement personnel of the competent authority and the person in charge of the financial institution.

Financial institutions shall properly keep the registration forms and strictly guard the relevant state secrets.

When financial institutions assist in inquiring, freezing, or deducting deposits, and involve verification, authorization, and approval work in the internal control system, they shall go through the relevant formalities in a timely manner in strict accordance with the internal control system, and shall not delay and pass the buck.

Article 13 Financial institutions shall conscientiously assist the competent authorities in handling the formalities of inquiry, freezing, and deduction. After receiving a notice to assist in freezing or deducting deposits, the funds that should be assisted in enforcement must not be deducted for the purpose of collecting loans and interest, and they must not report to the units or individuals that are being inquired about, frozen, or deducted, or help conceal or transfer deposits.

Where a financial institution assists the competent authority in completing the formalities for inquiring about deposits, and the competent authority requests confidentiality, the financial institution shall keep it confidential. After assisting the competent authorities in completing the formalities for freezing or deducting deposits, financial institutions may notify depository units or individuals according to their business needs.

Article 14 The materials that financial institutions assist the competent authorities in inquiring into should be limited to deposit materials, including the accounts opened and deposited by the units or individuals being inquired, as well as the accounting vouchers, account books, and statements related to deposits. Financial institutions shall truthfully provide the above-mentioned materials, and the competent authorities may copy, reproduce, or photograph them as needed, but must not take away the originals.

Where financial institutions have paid costs for assisting in the reproduction of deposit materials, they may collect the cost of production in accordance with relevant provisions.

Article 15 If, when inquiring about the deposit situation of a unit, the competent organ only provides the name of the unit being inquired but does not provide the account number, the financial institution shall actively assist in the inquiry on the basis of the account management file, and if there is no account to be inquired about, it shall truthfully inform the competent authority.

Article 16 The maximum period for freezing the deposits of units or individuals is six months, and the freezing may be renewed after the expiration of the period. The competent organ shall go through the formalities for renewing the freeze before the expiration of the freezing period, and if it fails to go through the formalities for renewing the freeze within the time limit, it shall be deemed to have automatically lifted the freezing measures.

Article 17 Where the competent authority requests that the deposits that have already been frozen be frozen, the financial institutions shall not handle the matter and shall explain the situation.

During the freezing period, a financial institution may unfreeze a frozen deposit only if the organ with the authority that originally made the freezing decision makes a decision to unfreeze the frozen deposits and issues a notice to unfreeze the deposits. Where a unit or individual whose deposits have been frozen raises an objection to the freezing, the financial institution shall inform it to contact the competent authority that made the freezing decision, and the financial institution shall not unfreeze the deposit on its own within the period of freezing the deposit.

Article 19 : Where an organ with authority makes an error in the work of freezing or unfreezing, and the organ at a higher level directly makes a decision or ruling on the modification, the financial institution shall handle it after receiving the written decision or ruling.

When a financial institution assists in deducting and transferring deposits, it shall directly transfer the deducted deposits to the account designated by the competent authority. Where the competent authority requests the withdrawal of cash, the financial institution shall not provide assistance.

Article 21 The notices of inquiry, freezing and deduction of deposits and the notices of unfreezing and deducting deposits shall be served by the law enforcement personnel of the competent authority in accordance with the law, and financial institutions shall not accept the above-mentioned notices delivered by persons other than the law enforcement personnel of the competent authority.

When two or more competent organs take measures to freeze or deduct the same deposit of the same unit or individual, the financial institution shall assist the competent organ that first served the notice of assistance in freezing or deducting the deposit to go through the freezing and deducting procedures.

Where two or more competent authorities have a dispute over the specific measures taken by a financial institution to assist in freezing or withholding, the financial institution shall handle it in accordance with the opinions of the relevant disputing organ after consultation.

The People's Bank of China is responsible for the interpretation of these provisions.

Article 24 These Provisions shall come into force on February 1, 2002.

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