(1) To establish a branch without authorization;

(2) To change or terminate business operations without authorization;

(3) To offer a product or service without approval or filing with the banking regulatory authority under the State Council; and

(4) To raise or lower interest rates on deposits or loans in violation of regulations.

Article 46 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 concurrently impose a fine ranging from 200,000 yuan to 500,000 yuan. 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:

(1) To appoint directors or senior managers without the fit and proper test;

(2) To refuse or obstruct the off-site surveillance or on-site examination;

(3) To submit statements, reports, documents or materials that are false or conceal important facts;

(4) To fail to disclose information to the public in accordance with regulations;

(5) To fail to meet prudential rules and regulations with serious consequences; and

(6) To refuse to take measures as required by Article 37 of this law.

Article 47 When a banking institution fails to submit statements, reports, documents or materials in accordance with regulations, the banking regulatory authority shall order it to take corrective measures. If the banking institution fails to make correction within the prescribed period of time, the banking regulatory authority may impose a fine ranging from 100,000 yuan to 300,000 yuan.

Article 48 When a banking institution violates laws, administrative regulations or other state regulations on banking regulation and supervision, the banking regulatory authority may, in addition to the enforcement actions prescribed in Article 44 to Article 47 of this Law, take the following measures depending on the severity of the circumstance:

(1) To order the banking institution to impose disciplinary sanctions on the directors and senior mangers directly in charge and other staff directly held responsible;

(2) If the case does not constitute a crime, to issue a disciplinary warning to the directors and senior managers directly in charge and other staff directly held responsible and concurrently impose on them a fine ranging from 50,000 yuan to 500,000 yuan; and

(3) To disqualify the directors and senior mangers directly in charge as being unfit and improper for a specified period of time or for life, and/or to bar the directors and senior mangers directly in charge and other staff directly held responsible from banking for a specified period of time or for life.

Article 49 Anyone who hampers the lawful inspection or investigation conducted by the staff members of the banking regulatory authority shall be subject to penalties by the public security authority; and if his or her behavior constitutes a crime, he or she shall be investigated for criminal liability according to law.

Chapter VI Supplementary Provisions

Article 50 Where the laws and administrative regulations provide otherwise the regulation and supervision of policy banks and asset management companies established in the People’s Republic of China, these provisions shall prevail.

Article 51 Where the laws and administrative regulations provide otherwise the regulation and supervision of the wholly foreign-funded banking institutions, Sino-foreign joint venture banking institutions and branches of foreign banking institutions that are established in the People’s Republic of China, these provisions shall prevail.

Article 52 This Law shall enter into effect as of February 1, 2004.

(Source: www.cbrc.gov.cn)