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Draft regulation on illegal fundraising

Updated: Dec 24,2020 08:08 AM

At the State Council’s executive meeting on Dec 21 chaired by Premier Li Keqiang, a draft regulation was passed on prevention and handling of illegal fundraising.

"It is very necessary to pass this regulation. It’s based on past experience and will further make the prevention and handling of illegal fundraising subject to the rule of law," Premier Li said. “We must deal with illegal fundraising by the rule of law, strengthen supervision in key areas, guard against and defuse risks, and protect the legitimate rights and interests of the people.”

According to relevant departments, in recent years, positive results have been achieved in cracking down on illegal fundraising cases thanks to strong measures, yet the situation is still challenging.

“We must always stay alert to illegal fundraising activities, make unremitting efforts to crack down on them in accordance with laws," Premier Li said.

The Premier stressed the importance of clear division of duties in this field. The draft stipulates that provincial governments should take overall responsibility within their administrative areas, and clearly spells out the duties and responsibilities of governments at all levels, departments in charge of the industry and regulatory bodies.

The draft also requires a better mechanism to prevent risks in market entities’ registration, internet management, and monitoring on advertising activities and funds. It stipulates coercive measures in investigation and handling procedures, and demands more supervision and accountability.

The draft lays down strict rules on administrative and criminal responsibility of illegal fundraising, fund liquidation, as well as consequences for violators.

The draft also stresses the part of governments at all levels and financial institutions to help raise public awareness about illegal fundraising.