China's State Administration of Financial Supervision and Administration and China's Ministry of Public Security published a second set of typical cases involving “black and grey industry” violations and crimes in the financial sector, aimed at strengthening coordination between administrative enforcement and criminal justice and showcasing recent court outcomes. The cases cover illegal loan intermediation and the misuse of bank operating loans for home purchases, including an unlicensed lending scheme that advanced funds for “purchasing houses on behalf of others” and lent RMB 56.39 million to 14 people at an effective annual rate above 36%, alongside convictions for illegal business operations. They also include large-scale loan fraud using shell companies and fabricated trade materials to obtain more than RMB 102 million in unsecured operating loans from six financial institutions, a “white household” recruitment scheme that obtained RMB 7.344 million in unsecured auto consumer loans from 38 borrowers, and insurance-related fraud involving short-term surrender of long-duration policies that generated more than RMB 23.48 million in surrender proceeds and commissions and caused more than RMB 5.84 million in insurer losses. A further case involved the illegal purchase of 67,207 items of policyholder personal information to support “agency surrender” activity, leading to a suspended prison sentence and confiscation of RMB 68,749 in illegal gains. The release also points to continued cross-agency cooperation on clue transfer, crime punishment and risk prevention and control, including plans to further develop digital supervision, conduct regular risk analysis and special governance work, and strengthen insurance-sector measures such as policyholder intent verification and case-based warning and education.
China Banking and Insurance Regulatory Commission 2026-01-23
China's State Administration of Financial Supervision and Administration and China's Ministry of Public Security release second batch of typical cases targeting financial black and grey industry crime
China's State Administration of Financial Supervision and Administration and the Ministry of Public Security released cases highlighting "black and grey industry" violations, including illegal loan schemes and insurance fraud, to enhance enforcement and criminal justice coordination. The cases underscore ongoing cross-agency efforts in crime prevention, digital supervision, and risk management, with plans for further development.