Administrative Measures for Credit Reporting Agencies

 2018-03-09  1509


Administrative Measures for Credit Reporting Agencies

Order of the People's Bank of China [2013] No. 1

November 15, 2013

According to the Law of the People's Republic of China on the People's Bank of China, the Administrative Regulations on the Credit Reporting Industry and other relevant laws and regulations, the People's Bank of China formulated the Administrative Measures for Credit Reporting Agencies which was adopted at the 14th governors' working meeting on September 18, 2013, are hereby promulgated and become effective as of December 20, 2013.

Zhou Xiaochuan, Governor

Administrative Measures for Credit Reporting Agencies

Chapter I General Provisions
 
Article 1 In order to strengthen the supervision and administration of credit reporting agencies, and promote the sound development of the credit reporting industry, these Measures are formulated according to the Law of the People's Republic of China on the People's Bank of China, the Company Law of the People's Republic of China, the Administrative Regulations on the Credit Reporting Industry and other laws and regulations.
 
Article 2 In these Measures, a credit reporting agency refers to an institution legally established which mainly operates the credit reporting business.
 
Article 3 The People's Bank of China (hereinafter referred to as the "PBC") legally performs the responsibility for supervising and administering credit reporting agencies. Any branch of the PBC performs the responsibility for supervising and administering the credit reporting agencies within its jurisdiction according to the scope of authorization from the head office thereof.
 
Article 4 Credit reporting agencies shall abide by the laws, administrative regulations and the provisions of the PBC and conduct integrity operation and shall not damage the national interest or public interest and infringe the legitimate rights and interests of others.

Chapter II Establishment, Change and Termination of Agencies
 
Article 5 The establishment of a personal credit reporting agency shall be subject to the approval of the PBC.
 
Article 6 To establish a personal credit reporting agency, in addition to Article 6 of the Administrative Regulations on the Credit Reporting Industry, the following requirements shall be met:
1. having a sound organizational structure;
2. having sound internal control systems such as those covering business procedure, information security management, compliance management, etc.; and
3. having a personal credit information system that meets the standard of national information security protection Grade II or above.
In Item 1 of Article 6 of the Administrative Regulations on the Credit Reporting Industry, a major shareholder refers to a shareholder whose capital contribution accounts for 5% or more of the total capital of a company or holds 5% or more of the shares of a company.
 
Article 7 To apply for establishing a personal credit reporting agency, the following materials shall be submitted to the PBC:
1. the application form for the establishment of the personal credit reporting agency;
2. the feasibility study report for the credit reporting business, including a development plan, operation strategy, etc.;
3. the articles of association;
4. the statement on the correlative relationship of shareholders and on actual controllers;
5. the statement that major shareholders do not commit any violation of the law or regulation in latest three years, as well as the credit report on the major shareholders;
6. post-holding qualification certifications of the proposed directors, supervisors and senior executives;
7. the organizational setting and the statement on basic staff composition;
8. the established internal control systems, including those covering business procedure, security management, compliance management, etc.;
9. the personal credit reporting information system security testing report issued by an institution with the national information security level protection testing qualification, the instruction in information security safeguards and relevant security guarantee system;
10. the document certifying the ownership or use right of the business premise; and
11. the photocopy of the written notice on enterprise name pre-approval issued by the administrative department for industry and commerce.
The PBC may verify application materials by field investigation, interview or other means.
 
Article 8 After accepting an application for the establishment of a personal credit reporting agency, the PBC publicly displays the following matters of the applicant thereof:
1. the name, business premise and business scope of the credit reporting agency to be established;
2. the capital of the credit reporting agency to be established;
3. the list of major shareholders of the credit reporting agency to be established and their respective capital contribution amount or shares held; and
4. the list of the directors, supervisors and senior executives of the credit reporting agency to be established.
 
Article 9 The PBC examines application matters within 60 days upon accepting an application for the establishment of a personal credit reporting agency and, according to the prudential principle conducive to the fair competition and sound development of the credit reporting industry, decides whether or not to approve the application. If the PBC decides to approve the application, it is to legally issue the business certificate for the personal credit reporting business; if the PBC decides not to approve the application, it shall make a written decision.
 
Article 10 A personal credit reporting agency that is established upon approval goes through the registration formalities by presenting its business certificate for the personal credit reporting business with the company registration authority and obtains its business license; the personal credit reporting agency shall, within 20 days after the company registration authority approves the registration, submit the photocopy of its business license to the PBC.
 
Article 11 Where a personal credit reporting agency intends to be merged or divided, it shall file an application with the PBC, state the application and the reason thereof, and submit relevant certification materials.
The PBC, within 20 days upon accepting the application, makes a written decision on whether or not to approve the application.
 
Article 12 Where a personal credit reporting agency intends to change its capital or major shareholder, it shall file an application with the PBC, state the change matter and the reason for such change, and submit relevant certification materials.
The PBC, within 20 days upon accepting the application, makes a written decision on whether or not to approve the application.
 
Article 13 Where a personal credit reporting agency intends to establish a branch, it shall meet the following requirements:
1. having already conducted full demonstration on the feasibility of the branch to be established; and
2. having no record of any major administrative penalty in latest three years.
 
Article 14 To apply for the establishment of a branch, a personal credit reporting agency shall submit the following materials to the PBC:
1. the application form for the establishment of a branch of the personal credit reporting agency;
2. the financial and accounting reports of the personal credit reporting agency for the previous year;
3. the feasibility study report on the establishment of the branch, including the three-year business development plan, market analysis and operation guidelines, etc. of the branch to be established;
4. internal control institutional arrangement and risk precautions against the establishment of the branch;
5. the statement that the personal credit reporting agency has not been subject to any major administrative penalty in latest three years; and
6. the resume of senior executives who are to hold the posts of the branch.
The PBC, within 20 days upon accepting the application, makes a written decision on whether or not to approve the application.
 
Article 15 Where a personal credit reporting agency changes its organization name, business premise or legal representative, it shall file an application with the PBC for changing the matter stated in its business certificate for the personal credit reporting business.
A personal credit reporting agency shall, after changing the matter stated in its business certificate for the personal credit reporting business, apply to the company registration authority for completing the change formalities, and report the same to the PBC within 20 days after the company registration authority approves such change.
 
Article 16 A business certificate for the personal credit reporting business shall be publicly displayed at the dominant place of the business premise of a personal credit reporting agency.
 
Article 17 A personal credit reporting agency shall properly keep its business certificate for the personal credit reporting business and shall not alter, speculatively resell, rent, lend or assign the business certificate.
 
Article 18 A business certificate for the personal credit reporting business is valid for three years. Where a business certificate for the personal credit reporting business needs to be renewed upon expiry, an application shall be filed with the PBC within 60 days before the expiry for reissuing the business certificate.
If such renewal fails to be made upon expiry, the personal credit reporting agency shall, within 60 days before the expiry of the business certificate for the personal credit reporting business, report the same to the PBC and, according to Article 20 hereof, properly handle the information database and complete the formalities for canceling the business certificate for the personal credit reporting business; if the personal credit reporting agency fails to file a renewal application within 60 days before the expiry of the , business certificate for the personal credit reporting business, the PBC may cancel the business certificate for the personal credit reporting business at the expiry of the business certificate for the personal credit reporting business and handle the information database according to Article 12 of the Administrative Regulations on the Credit Reporting Industry.
 
Article 19 To establish an enterprise credit report agency, the company incorporation requirements specified in the Company Law of the People's Republic of China shall be met, the record formalities be completed with the PBC branch at the place where such agency is located, a central sub-branch at or above the level of a provincial capital city, within 30 days after the company registration authority approves the registration, and the following materials be submitted:
1. the record form for an enterprise credit reporting agency;
2. the photocopy of the business license;
3. the statement on ownership structure, including capital, the list of shareholders and their capital contribution amount or shares held;
4. the organizational setting and the statement on basic staff composition;
5. the report on the basic information about the business scope and business rules;
6. the basic information on the business systems, including the report on the construction of the enterprise credit information system and the enterprise credit reporting information system security testing report issued by an institution with the national information security level protection testing qualification; and
7. measures for information security and risk precaution, including internal control system and security management system which have been established.
Where an enterprise credit reporting agency changes its record matter, it shall go through the record formalities with the record authority within 30 days upon the change of the record matter.

 
Article 20 Where a personal credit reporting agency terminates its credit reporting business due to such reason as dissolution or being legally declared bankrupt, it shall report its withdrawal plan to the PBC 60 days before the proposed termination and handle the information database according to Paragraph 1 of Article 12 of the Administrative Regulations on the Credit Reporting Industry.
Where a personal credit reporting agency terminates its credit reporting business, it shall, within 20 days upon termination, announce the same on the media designated by the PBC, and go through the formalities for cancelling its business certificate for the personal credit reporting business and turn in the certificate to the PBC; in the event of failure to turn in the certificate within the time limit, the PBC shall legally take over the certificate.
 
Article 21 Where an enterprise credit reporting agency terminates its credit reporting business due to such reason as dissolution or being legally declared bankrupt, it shall report its withdrawal plan to the PBC within 60 days before the proposed termination and handle the information database according to Paragraph 1 of Article 12 of the Administrative Regulations on the Credit Reporting Industry.

Chapter III Management of Senior Executives
 
Article 22 Any director, supervisor or senior executive of a personal credit reporting agency shall possess the post-holding qualification approved by the PBC for holding his or her post.
 
Article 23 To possess the qualification to hold a post as a director, supervisor or senior executive of a personal credit reporting agency, the following requirements shall be met:
1. being honest and having good behavior;
2. having a diploma of graduating from a junior college or above in a relevant specialty;
3. having engaged in credit reporting for at least three years or in finance, legal, accounting or economic work for at least five years;
4. having the capacity of management as required for the performance of responsibility; and
5. being familiar with the laws, regulations and expertise relating to the credit reporting business.
 
Article 24 Whoever is under any of the following circumstances shall not act as a director, supervisor or senior executive of a personal credit reporting agency:
1. it is less than five years after the expiration of the term of a punishment to which he or she is sentenced due to corruption, bribery, conversion or misappropriation of property or damaging the economic order of the socialist market or the deprival of his or her political rights for a crime; and
2. he or she has the record of any major violation of the law or regulation in latest three years.
In these Measures, the record of any violation of the law or regulation refers to any criminal record or major administrative penalty record other than those as specified in Item 1 of the preceding paragraph.
 
Article 25 To apply for the approval from the PBC for the qualification to hold a post as a director, supervisor or senior executive, the personal credit reporting agency shall submit the following materials:
1. the application form for the qualification to hold a post as a director, supervisor or senior executive;
2. the personal resume documents of the proposed director, supervisor or senior executive;
3. the photocopies of the academic certificates of the proposed director, supervisor or senior executive;
4. the statement that the proposed director, supervisor or senior executive has no record of any major violation of the law or regulation in latest three years; and
5. the personal credit report on the proposed director, supervisor or senior executive.
A personal credit reporting agency shall faithfully submit the materials specified in the preceding paragraph, and the personal credit reporting agency and its proposed director, supervisor or senior executive shall be responsible for the authenticity and completeness of the materials. The PBC verifies the authenticity of the materials as necessary, and assesses or interviews the director, supervisor or senior executive who applies for the post-holding qualification.
 
Article 26 The PBC legally examines the post-holding qualification of any director, supervisor or senior executive of a personal credit reporting agency, and makes a written decision on whether or not to approve the qualification.
 
Article 27 A director, supervisor or senior executive of an enterprise credit reporting agency shall, within 20 days upon appointment by the credit reporting agency for which he or she works, go through the record formalities with the PBC branch at the place where such agency is located, a central sub-branch at or above the level of a provincial capital city, and submit the following materials:
1. the record form of the director, supervisor or senior executive;
2. the personal resume documents of the director, supervisor or senior executive;
3. the photocopies of the academic certificates of the director, supervisor or senior executive; and
4. the statement on the authenticity of the record materials of the director, supervisor or senior executive.
Where there is any change in a director, supervisor or senior executive of an enterprise credit reporting agency, the record formalities for such change shall be completed with the record authority within 20 days upon the change.

Chapter IV Supervision and Administration
 
Article 28 A personal credit reporting agency shall, at the end of the first quarter of each year, report the implementation of the credit reporting business of the previous year to the PBC.
An enterprise credit reporting agency shall, at the end of the first quarter of each year, report the implementation of the credit reporting business of the previous year to the record authority.
A report shall cover credit information gathering, development of a credit reporting product, credit information service, handling of objections, construction of the credit information system, and information security guarantee, etc.
 
Article 29 A personal credit reporting agency shall, as required, submit to the PBC such materials as statistical statements on the credit reporting business, financial and accounting reports, and audit reports.
An enterprise credit reporting agency shall, as required, submit to the record authority such materials as statistical statements on the credit reporting business, financial and accounting reports, and audit reports.
A credit reporting agency shall be responsible for the authenticity, accuracy and completeness of the statements and materials submitted.
 
Article 30 A credit reporting agency shall, according to the national information security protection level testing standard, test the security information about the credit information system.
Where the credit information system security protection level of a credit reporting agency is Grade II, such agency shall be tested every two years; where the credit information system security protection level is Grade III, such agency shall be tested every year.
A personal credit reporting agency shall, within 20 days after an institution with the national information security level protection testing qualification issues a testing report, submit the testing report to the PBC, and the enterprise credit reporting agency shall submit the testing report to the record authority.
 
Article 31 Where a credit reporting agency is under any of the following circumstances, the PBC or its branch may put such agency under key supervision:
1. committing any violation of the law or regulation in the previous year;
2. being possibly subject to a sign of information leakage;
3. enduring abnormal financial standing or heavy loss;
4. receiving lots of complaints;
5. failing to submit relevant materials according to Article 28, 29 or 30 hereof; and
6. any other circumstance over which the PBC deems necessary to require key supervision.
Where a credit reporting agency is listed as a target for key supervision, the PBC or its branch may, according to the circumstance, shorten the period of reporting the implementation of the credit reporting business of the credit reporting agency and conducting the credit information system security testing, and take relevant regulatory measures to supervise the rectification of the credit reporting agency.
Where the circumstances as specified in Paragraph 1 hereof are cancelled, the PBC or its branch may not list such agency as a target for key supervision.
 
Article 32 The PBC or its branch may, according to the regulatory need, interview the directors, supervisors and senior executives of credit reporting agencies, require them to make a statement on relevant major matters of their credit reporting business such as operation, risk control and internal management.

Chapter V Penal Provisions
 
Article 33 Where an applicant for the establishment of a personal credit reporting agency conceals relevant information or provides false materials. the PBC imposes a punishment according to relevant provisions of the Administrative Licensing Law of the People's Republic of China.
 
Article 34 Where the personal credit information system of a personal credit reporting agency fails to meet the requirements of national information security protection Grade II or above, the PBC may order it to make rectification; if the circumstance is serious or such agency refuses to make rectification, the PBC cancels its business certificate for the personal credit reporting business according to Article 38 of the Administrative Regulations on the Credit Reporting Industry.
 
Article 35 Where an applicant for the qualification to hold a post as a director, supervisor or senior executive of a personal credit reporting agency conceals relevant information or provides false materials, the PBC refuses to accept the case or refuses to approve such qualification and gives a warning thereon; if approval has been made, such qualification is to be cancelled.
The above applicants are prohibited from filing a new application for such qualification within three years.
 
Article 36 Where a personal credit reporting agency appoints a director, supervisor or senior executive without post-holding qualification, the PBC orders such agency to make a correction and gives a warning thereon; if the circumstance is serious, a fine of not less than CNY10,000 but not more than CNY30,000 is to be imposed thereon.
Where an enterprise credit reporting agency fails to timely go through the record formalities for its appointed directors, supervisors and senior executives or to timely change such record, or provides false materials in such record, the branch of the PBC orders it to make a correction and gives a warning thereon; if the circumstance is serious, a fine of not less than CNY10,000 but not more than CNY30,000 is to be imposed thereon.
 
Article 37 Where a credit reporting agency violates Article 29 or 30 hereof, the PBC or its branch order it to make a correction; if the circumstance is serious, a fine of not less than CNY10,000 but not more than CNY30,000 is to be imposed thereon; if a crime is suspected of being committed, the case is to be transferred to the judicial authority for criminal prosecution.

Chapter VI Supplementary Provisions
 
Article 38 The PBC is responsible for the interpretation of these Measures.

Article 39 These Measures become effective as of December 20, 2013.