Article 42 The banking regulatory authority may, subject to approval by the head of the banking regulatory authority at or above the level of districted cities, take the following measures to investigate the institutions and individuals suspected of violating the law during its inspection on banking institutions:

(1) To interview relevant institutions and individuals and require them to provide explanations on relevant matters;

(2) To check and make copies of the documents and materials related to financial records or property ownership records; and

(3) To record and keep a file of the documents and materials that are likely to be removed, concealed, destroyed or falsified.

Where the measures prescribed in the preceding paragraphs are being taken, there shall be no less than two investigators, who shall present their legal certificates and the written notification of investigation. Where there are less than two investigators, or no legal certificates and written notification of investigation are presented, the relevant institutions or individuals shall have the right to refuse the investigation. Where the measures are taken according to law, the relevant institutions or individuals shall be cooperative, truthfully disclose the required information and provide relevant documents and materials, and shall not refuse or hamper the investigation or conceal the information.

Chapter V Legal Liabilities

Article 43 When the supervisory staff of the banking regulatory authority commits any of the following acts, he or she shall be subject to administrative sanctions according to law. If the case constitutes a crime, he or she shall be investigated for criminal liability according to law:

(1) To authorize, in violation of regulations, a banking institution’s establishment, changes, termination, business scope or offering of products or services within its business scope;

(2) To conduct on-site examination of banking institutions in violation of regulations;

(3) To fail to report emergency situations in the banking sector in accordance with Article 28 of this Law;

(4) To inspect bank accounts or request freezing of funds in violation of regulations;

(5) To take enforcement actions or penalties against a banking institution in violation of regulations;

(6) To investigate the relevant institutions or individuals against Article 42 of this Law; and

(6) Other acts such as abuse of power and/or neglect of duties.

The supervisory staff of the banking regulatory authority who commits embezzlement, bribery or divulgence of national secrets, trade secrets or personal privacy shall, if the case constitutes a crime, be investigated for criminal liability according to law, and if the case does not constitute a crime, be subject to administrative sanctions according to law.

Article 44 When a banking institution is established, or banking businesses are conducted without the authorization of the banking regulatory authority under the State Council, the banking regulatory authority under the State Council shall have the authority to ban such institution or businesses. If the case constitutes a crime, criminal liability shall be pursued according to law. If the case does not constitute a crime, the banking regulatory authority under the State Council shall confiscate the illegal gains. If the amount of illegal gains exceeds 500,000 yuan, a fine ranging from one to five times the amount of illegal gains shall be imposed. If no illegal gains are involved or the amount of illegal gains is less than 500,000 yuan, a fine ranging from 500,000 yuan to 2 million yuan shall be imposed.

Article 45 When a banking institution commits any of the following acts, the banking regulatory authority under the State Council shall order it to take corrective measures, and, if illegal gains are involved, shall confiscate the illegal gains. If the amount of illegal gains exceeds 500,000 yuan, a fine ranging from one to five times the amount of illegal gains shall be imposed. If no illegal gains are involved, or the amount of illegal gains is less than 500,000 yuan, a fine ranging from 500,000 yuan to 2 million yuan shall be imposed. If the case is particularly serious, or the banking institution fails to make correction within the prescribed period of time, the banking regulatory authority under the State Council may order suspension of business for rectification or revocation of its banking license. If the case constitutes a crime, criminal liability shall be ascertained according to law: