The China Banking and Insurance Regulatory Commission, working with the Ministry of Public Security, published a first set of typical cases highlighting intensified coordination between administrative enforcement and criminal justice to crack down on prominent “black and grey industry” illegal activity in the financial sector. The cases focus on (i) loan and credit card fraud driven by illegal loan intermediaries who “package” so-called “professional debt-bearers” and (ii) extortion carried out under the guise of “insurance surrender agency” services. In the loan case, the group recruited borrowers without repayment capacity and lacking local home-buying eligibility, falsified down-payment evidence, inflated transaction prices, and created the appearance of a paid down payment to obtain mortgage loans and complete property registration, then split the remaining loan proceeds after paying the seller. Authorities found RMB 7.38 million of loan fraud involving 11 borrowers, alongside credit cards applied for using the same “packaging”, with RMB 5.75 million of principal remaining unpaid at the time of the case. Following a police investigation opened in June 2023, a court judgment in March 2025 sentenced the lead defendant to a combined 16 years’ imprisonment and an RMB 800,000 fine, with other defendants in related proceedings receiving prison terms ranging from 11 years and six months to three years and fines from RMB 500,000 to RMB 100,000. In the insurance case, individuals promoted “full” or “high” surrender payouts, fabricated allegations and evidence of insurer or agent misconduct, and used repeated complaints and intimidation to pressure insurers into paying cash value plus additional compensation of 60% to 100% of premium amounts, taking 20% to 30% as commission. The scheme involved 115 policyholders, caused insurer losses of RMB 2.1762 million, and generated illegal gains of RMB 489,600; criminal judgments issued in May 2024 were upheld on appeal on 9 April 2025, including prison terms of 11 and 10 years and fines of RMB 100,000 and RMB 60,000 for the principal offenders.
China Banking and Insurance Regulatory Commission 2025-09-15
China Banking and Insurance Regulatory Commission and Ministry of Public Security release first batch of typical cases targeting financial black and grey industry crimes
The China Banking and Insurance Regulatory Commission and the Ministry of Public Security released cases illustrating enhanced enforcement against illegal financial activities. These involve loan and credit card fraud by illegal intermediaries and extortion disguised as insurance surrender services, resulting in significant financial losses and criminal sentences. The crackdown targets "black and grey industry" activities, with substantial prison terms and fines imposed on offenders.