Opinions of Conducting Network Enforcement Inquiry and Control and Joint Credit Discipline

 2018-08-24  1472


· Document Number:No. 266 [2014] of the Supreme People's Court

· Area of Law: Banking & Finance

· Level of Authority: Documents of Judicial Interpretation Nature

· Date issued:10-24-2014

· Effective Date:10-24-2014

· Issuing Authority: Supreme People's Court China Banking Regulatory Commission

· Status: Effective

 

Opinions of the Supreme People's Court and the China Banking Regulatory Commission on Conducting Network Enforcement Inquiry and Control and Joint Credit Discipline by People's Courts and Banking Financial Institutions
(No. 266 [2014] of the Supreme People's Court)
The higher people's courts of all provinces, autonomous regions, and municipalities directly under the Central Government; the Military Court of the People's Liberation Army; and the Production and Construction Corps Branch of the Higher People's Court of Xinjiang Uygur Autonomous Region; all local offices of the China Banking Regulatory Commission (“CBRC”); all policy banks, state-owned commercial banks, and joint-stock commercial banks; Postal Savings Bank of China; and all provincial rural credit cooperative unions:
To maintain judicial authority, guard against financial risks, protect the lawful rights and interests of the parties, and promote the building of social credit system, the Supreme People's Court and the CBRC hereby put forward the following opinions on network enforcement inquiry and control and joint credit discipline conducted by people's courts and banking financial institutions, in accordance with the provisions of the Civil Procedure Law of the People's Republic of China, the Law of the People's Republic of China on Commercial Banks, and the Opinions on Several Issues concerning Establishing a Sound Mechanism of Joint Efforts in Enforcement, and in light of the actual circumstances:
I. The Supreme People's Court and the CBRC encourage and support the people's courts at all levels and banking financial institutions to conduct enforcement, assist in enforcement, and jointly impose credit discipline upon dishonest persons subject to enforcement, through network informationization approaches.
II. The Supreme People's Court and the CBRC encourage and support banking financial institutions to establish a network enforcement inquiry and control mechanism with people's courts, to inquire about the information on the deposits and other financial assets of the persons subject to enforcement via the network and handle other assistance matters.
Banking financial institutions shall promote electronic informationization building and assist people's courts in establishing the network enforcement inquiry and control mechanism.
III. The CBRC urges and provides guidance for banking financial institutions to specially designate institutions and personnel to be in charge of network enforcement inquiry and control and to report the handling results in a timely and accurate manner; and encourages and supports the development of the automatic batch inquiry and control functions, to realize accurate and efficient data query.
IV. The CBRC encourages and supports people's courts and banking financial institutions to gradually implement inquiry, freeze, deduction, and other enforcement measures via the network under the premise of complete legal procedures and safety of funds.
The banking financial institutions which have not yet established the network enforcement inquiry and control mechanism with the people's courts or whose assistance matters are unable to be handled via the network shall assist the people's courts in handling on site, in accordance with the law, judicial interpretation and relevant provisions.
V. The CBRC encourages and supports banking financial institutions to establish a national network enforcement inquiry and control mechanism on the basis of the national courts' enforcement case information system with people's courts.
The national network enforcement inquiry and control mechanism shall be established mainly through two modes. First, the “head office to head office” networking, namely connection between the network of the Supreme People's Court and the networks of the head offices of banking financial institutions via the specialized financial network of the CBRC. The people's courts at all levels shall implement inquiry and control via the network enforcement inquiry and control system of the Supreme People's Court. Second, “point to point” networking, namely connection between the networks of the higher people's courts and the networks of the provincial branches of banking financial institutions via the specialized financial networks of the local CBRC offices. A local people's court shall implement local inquiry and control through the enforcement inquiry and control system of the higher people's court and a court at another locality shall access to the enforcement inquiry and control system of a local higher people's court via transit through the network of the Supreme People's Court to implement inquiry and control.
Where the people's courts at any level have reached agreements with the banking financial institutions and their branches on establishing the network inquiry and control mechanism through dedicated lines or other networks, the original mode may be continuously adopted for the building and operation of the network inquiry and control mechanism. Where a mode rather than the second mode is adopted for the building of the network inquiry and control mechanism subsequent to the issuance of these opinions, it shall be subject to the approval of the Supreme People's Court and the CBRC.
VI. Where a people's court having established a network enforcement inquiry and control mechanism with a banking financial institution takes inquiry and control measures upon the deposits or other financial assets of a person subject to enforcement through the network enforcement inquiry and control system, the Provisions of the Supreme People's Court on the Network Inquiry and Freeze of the Deposits of the Persons Subject to Enforcement (Interpretation No. 20 [2013]) shall apply.
VII. The courts at all levels shall strengthen management to ensure that the inquires about and the use of the bank account information and other information on the persons subject to enforcement comply with laws, regulations, judicial interpretations and financial regulation provisions, and persons concerned are in strict compliance with the confidentiality provision.
VIII. The Supreme People's Court and the CBRC encourage and support banking financial institutions to establish a joint credit discipline mechanism with people's courts. Banking financial institutions and people's courts shall share the name list of the dishonest persons subject to enforcement and other enforcement case information through network transmission and other ways. Banking financial institutions shall, in accordance with the provisions of laws and regulations, take the measures such as restricting loans and restricting granting of credit cards to dishonest persons subject to enforcement in financing credit and other financial service areas.
IX. The courts at higher levels and banking regulators shall strengthen the supervision and guidance on the establishment of the network enforcement inquiry and control mechanism and the joint credit discipline mechanism, coordinate and handle the differences and disputes arising from the establishment and operation of the two mechanisms.
The people's courts and the banking financial institutions having established cooperative relationship shall specially assign persons to coordinate and handle the disputes arising from the operation of the two mechanisms. Where coordination fails, the disputes may be coordinated and handled by the courts at higher levels and the banking regulators.
The people's courts and the banking financial institutions having established cooperative relationship shall prepare contingency plans and assign specialized technicians to handle the emergencies arising from the operation of the two mechanisms, to ensure safety of the system.
X. Where a banking financial institution assists a people's court in implementing the network enforcement inquiry and control measures in accordance with the law, and the parties concerned or other interested parties have objections, the banking financial institution shall inform them of filing the objections with the enforcement court in accordance with the provision of Article 225 of the Civil Procedure Law, except when the banking financial institution fails to implement as requested in the notice on assistance in enforcement.
XI. Where the relevant normative documents on assistance in enforcement of people's courts and banking financial institutions are inconsistent with these Opinions, the latter shall prevail.
Supreme People's Court
China Banking Regulatory Commission
October 24, 2014