· Document Number：No.239 [2006] of Shanghai Branch of the People’s Bank of China

· Area of Law： Banking & Finance Foreign Exchange Negotiable Instruments Securities

· Level of Authority： Local Regulatory Documents

· Date issued：11-07-2006

· Effective Date：11-07-2006

· Issuing Authority： Shanghai Municipality

· Status： Effective

Notice of Shanghai Branch of the People's Bank of China on Strictly Implementing the Interim Regulation of Shanghai Municipality on the Issuance and Use of the List of Check Drawers who Draw Checks by Violating Regulations
(No.239 [2006] of the People's Bank of China, Shanghai Branch)
Shanghai Branches of all policy banks, state-owned commercial banks and joint stock commercial banks, Bank of Shanghai, Shanghai Rural Commercial Bank and all foreign banks of Shanghai Municipality that operate RMB business:
Pursuant to the Interim Regulation of Shanghai Municipality on the Issuance and Use of the List of Check Drawers who Draw Checks by Violating Regulations (No.95 [2006] of the People's Bank of China, Shanghai Branch, hereinafter referred to as Interim Regulation), this Branch has successively issued two issues of the List of Check Drawers who Draw Checks by Violating Regulations of Shanghai Municipality (No.95 and No.205 [2006] of the People's Bank of China, Shanghai Branch, hereinafter referred to as Blacklist). According to the requirement of the Interim Regulation, as for a check drawer who has been listed into the Blacklist, all banks shall recall the residual checks and stop the check drawer from drawing any more check. However, we find out from the Rubber Check Notification received by this branch from July 1st, 2006 to September 30th, 2006 that some banks still failed to implement in strict accordance with the above-mentioned requirements, after the publication of the first Blacklist, 182 check drawers who have been listed into the Blacklist still issued 580 illegal checks. For the purpose of intensifying the efforts in punishing the illegal act of issuing rubber checks and maintaining the normal payment and settlement order, we hereby print and distribute the relevant information concerning the above-mentioned 580 checks issued by violating regulations to you (Annex 1), and notify the relevant issues concerning the strict implementation of the Interim Regulation as follows:
1. A bank shall, after receiving this Notice, immediately organize the branches within its jurisdiction to conduct a self-inspection on the implementation of the Interim Regulation for once, check and verify the information on the checks issued by violating regulations one by one (Annex 1), immediately correct its branches' act of continuing selling checks by violating regulations, and report the feedback table of the information on the checks issued by this bank by violating regulations (Annex 2) and the written self-inspection report (including the electronic file) to this Branch before December 15th, 2006.
2. A bank shall, in strict accordance with the requirements of the Interim Regulation, recall the residual checks of the entities listed into the Blacklist, stop them from drawing any more check, and may not continue providing checks for these entities. As for the act of still selling checks to the check drawers that violate the regulations after January 1st, 2007, this Branch will circulate a notice of criticism.
3. Where an entity listed into the Blacklist applies for being cancelled from the Blacklist, the bank where its basic deposit account is opened shall conduct strict examination; if the entity does have made rectification, paid all penalties and promised not to issue any rubber check, the bank shall make report to this Branch level by level according to Article 9 of the Interim Regulation; upon the examination and check of this Branch, the follow-up handling on canceling the relevant data and information of the Blacklist may be conducted.
Where there is any problem encountered in the process of self-inspection, all banks may contact this Branch in a timely manner, contact persons: Zhu Haiming and Chen Yong; contact tel: 58845861, 58845814; fax: 58845898; Email: zfzdk814@163.com.
Annex: 1. Information on the Checks Issued by Entities of the Blacklist by Violating Regulations
Serial No. Name of the Check Drawer Date of Issuance Check Amount Check No. Account Number of the Check Drawer




2. Feedback Table of the Information on the Checks Issued by Entities of the Blacklist by Violating Regulations (omitted)
People's Bank of China, Shanghai Branch
November 7th, 2006