(Order of the State Council of the People’s Republic of China No. 631)
The Regulation on the Administration of Credit Investigation Industry, as adopted at the 228th executive meeting of the State Council on December 26, 2012, is hereby issued, and shall come into force on March 15, 2013.
Premier Wen Jiabao
January 21, 2013
Chapter I General Provisions
Article 1 This Regulation is made to regulate credit investigation activities, protect the legal rights and interests of the parties concerned, guide and promote the healthy development of credit investigation industry and enhance the building of the social credit system.
Article 2 This Regulation applies to credit investigation and the relevant activities carried out inside China. For the purpose of this Regulation, the term“credit investigation” refers to activities of collecting, arranging, saving and processing the credit information of enterprises, public institutions and other organizations (hereinafter referred to as “enterprises”) as well as individuals, and providing it to information users. The collection, arrangement, saving, processing and provision of information by the Basic Financial Credit Information Database formed by the state shall be governed by Chapter V of this Regulation. This Regulation is not applicable when state organs, or organizations authorized bylaws or regulations with the function of administering public affairs, collect, arrange, save, process and publish information of enterprises and individuals for the purpose of performing duties under laws, administrative regulations and the State Council provisions.
Article 3 Those engaged in credit investigation and the relevant activities shall abide bylaws and regulations and keep good faith, and may not endanger state secrets or infringe upon trade secrets or personal privacy.
Article 4 The People’s Bank of China (hereinafter referred to as “the supervisory and administrative department of credit investigation under the State Council”) and its local offices shall supervise and administer credit investigation industry by law. The local people’s governments at or above the county level and the relevant departments under the State Council shall enhance the building of social credit systems in the local regions and the relevant industries, develop the credit investigation market and promote the development of credit investigation industry.
Chapter II Credit Investigation Institutions
Article 5 For the purpose of this Regulation, the term “credit investigation institution” refers to legally formed institutions mainly engaged in credit investigation.
Article 6 To form a credit investigation institution engaged in individual credit investigation, it is required to satisfy the following conditions in addition to those set forth by the Company Law of the People’s Republic of China for the formation of companies, and obtain the approval of the supervisory and administrative department of credit investigation under the State Council:
1. Its principal shareholders have a good credit standing and have no record of gross violations of laws or regulations in the last three years;
2. Its registered capital is not less than 50 million yuan;
3. It is equipped with facilities, devices, systems and measures which satisfy the requirements of the supervisory and administrative department of credit investigation under the State Council to ensure information security;
4. Persons to be its directors, supervisors and senior managers satisfy the eligibility requirements as set forth by Article 8 of this Regulation; and
5. Other prudential conditions as set forth by the supervisory and administrative department of credit investigation under the State Council.
Article 7 To apply for forming a credit investigation institution engaged in individual credit investigation, the applicant shall submit an application form and materials proving its satisfaction of conditions specified in Article 6 of this Regulation to the supervisory and administrative department of credit investigation under the State Council. The supervisory and administrative department of credit investigation under the State Council shall examine the application by law, and make a decision of approval or disapproval within 60 days after accepting the application. In the case of approval, it shall issue an individual credit investigation business operation permit; in the case of disapproval, it shall give reasons in writing. A credit investigation institution formed to operate individual credit investigation business upon approval shall handle registration formalities at the company registration organ on the basis of the individual credit investigation business operation permit. No entity or individual may engage in individual credit investigation without the approval of the supervisory and administrative department of credit investigation under the State Council.
Article 8 The directors, supervisors and senior managers of a credit investigation institution engaged in individual credit investigation shall be familiar with laws and regulations governing credit investigation, have experience and management ability required for performing duties in credit investigation industry, have no record of gross violations of laws or regulations in the last three years, and have the qualification ratified by the supervisory and administrative department of credit investigation under the State Council.
Article 9 For the formation of branch offices, merger or split, change of registered capital, or change of shareholders whose investment accounts for 5% or more of the total capital or shareholders holding shares accounting for 5% or more of the total shares, a credit investigation institution engaged in individual credit investigation shall obtain the approval of the supervisory and administrative department of credit investigation under the State Council. For the change of name, a credit investigation institution engaged in individual credit investigation shall file it with the supervisory and administrative department of credit investigation under the State Council.
Article 10 To form a credit investigation institution engaged in enterprise credit investigation, it is required to satisfy conditions set forth by the Company Law of the People’s Republic of China, and, on the basis of the following materials, handle filing formalities at the local office of the supervisory and administrative department of credit investigation under the State Council within 30 days after its registration is approved by the company registration organ:
1. its business license;
2. an explanation on its equity structure or organizational setup;
3. basic information about its scope of business, business rules and business systems; and
4. information security and risk prevention measures. For any change in matters to be filed, it is required to handle modification formalities at the original filing organ within 30 days as of the day of change.
Article 11 Credit investigation institutions shall report their credit investigation business operations of the last year according to the requirements of the supervisory and administrative department of credit investigation under the State Council. The supervisory and administrative department of credit investigation under the State Council shall announce the lists of credit investigation institutions engaged in individual credit investigation and those engaged in enterprise credit investigation to the general public, and update such lists betimes.
Article 12 When a credit investigation institution is dissolved or lawfully declared bankrupt, it is required to report to the supervisory and administrative department of credit investigation under the State Council, and dispose of its information database in the following way:
1. transferring the database to another credit investigation institution if it has reached an agreement thereon with the said credit investigation institution and obtained the approval of the supervisory and administrative department of credit investigation under the State Council;
2. transferring the database to a credit investigation institution designated by the supervisory and administrative department of credit investigation under the State Council when it fails to transfer the database in the way described in the preceding paragraph; or
3. destroying the database under the supervision of the supervisory and administrative department of credit investigation under the State Council when it fails to transfer the database in the way described in either of the preceding paragraphs. When a credit investigation institution engaged in individual credit investigation is dissolved or lawfully declared bankrupt, it shall make an announcement at a medium designated by the supervisory and administrative department of credit investigation under the State Council, and surrender its individual credit investigation business operation permit to the supervisory and administrative department of credit investigation under the State Council for cancellation.
Chapter III Credit Investigation Rules
Article 13 To collect personal information, it is required to obtain the consent of the subject of the information. Otherwise, it may not be collected, unless for information which should be disclosed under laws or administrative regulations. Information about the performance of duties by directors, supervisors or senior managers of enterprises is not categorized as individual information.
Article 14 Credit investigation institutions are prohibited to collect information about the religious belief, gene, fingerprints, bloodtype, disease or medical history of individuals, as well as other individual information the collection of which is prohibited bylaws or administrative regulations. Credit investigation institutions may not collect information about the income, deposit, negotiable securities, commercial insurance, real property or taxes of individuals, unless they have expressly informed the individuals concerned of the possible adverse consequences that may be brought along with the provision of such information and have obtained their written consent.
Article 15 Before providing bad information about an individual to a credit investigation institution, the provider shall inform the said individual, unless for bad information that should be disclosed under laws or administrative regulations.
Article 16 Credit investigation institutions shall keep the bad information of individuals for five years from the daywhen the bad behavior or event stops. Upon the expiration of five years, such information shall be deleted. During the period of retention of bad information, the subject of the bad information may make an explanation on the bad information, and the credit investigation institutionshall put it on record.
Article 17 Information subjects may inquire of credit investigation institutions about their information. Individual subjects have the right to have access to their own credit reports twice every year without paying fees.
Article 18 To inquire of credit investigation institutions about personal information, it is required to obtain the written consent of the information subject and reach an agreement with the subject on the use of such information, except for information which can be inquired about without consent as prescribed bylaws. Credit investigation institutions may not provide personal information in violation of the preceding paragraph.
Article 19 A credit investigation institution, information provider or information user shall, when using a format contract to obtain the consent of the individual information subject, give prompts conspicuous enough to catch the attention of the individual and make explicit explanations as required by the individual.
Article 20 Information users shall use the personal information according to the stipulations in the agreement with the individual information subjects, and may not use it for other purposes or provide it to third parties without the consent of individual information subjects.
Article 21 Credit investigation institutions may collect enterprise information from sources such as information provided by information subjects, counterparties of enterprises and industry associations, information lawfully disclosed by the relevant governmental departments and judgments or decisions announced by people’s courts. Credit investigation institutions may not collect enterprise information the collection of which is prohibited bylaws or administrative regulations.
Article 22 Credit investigation institutions shall, according to the provisions of the supervisory and administrative department of credit investigation under the State Council, establish, improve and strictly implement information security rules, and take effective technical measures to guarantee information security. Credit investigation institutions engaged in individual credit investigation shall explicitly specify their staff members’ privileges and procedures to inquire about personal information, and register the inquiries made by their staff members about personal information by truthfully recording the name of staff members making inquiries, the time of inquiry, and the content and use of information. Staff members may not inquire about information in violation of the prescribed privileges or procedures or divulge information which they have access to in work.
Article 23 Credit investigation institutions shall take reasonable measures to ensure the accuracy of information provided by them. Information provided by credit investigation institutions may be used by information users as reference.
Article 24 For information collected inside China, credit investigation institutions shall arrange, save and process it inside China. To provide information to overseas organizations or individuals, credit investigation institutions shall abide bylaws, administrative regulations and the relevant provisions of the supervisory and administrative department of credit investigation under the State Council.
Chapter IV Demurs and Complaints
Article 25 An information subject holding that there is any error or omission in the information collected, saved or provided by a credit investigation institution has the right to raise a demur to the credit investigation institution or information provider, requesting for a correction. After receiving such a demur, the credit investigation institution or information provider shall label the information concerned as demurred at according to the provisions of the supervisory and administrative department of credit investigation under the State Council, check and handle it within 20 days as of the day when the demur is received, and give a written reply to the demurrer. If it is found out upon check that there is an error or omission, the information provider or credit investigation institution shall correct it; if it has been confirmed that there is no error or omission, the label shall be removed; if it is unable to decide whether there is an error or omission upon check, the checking process and the demur shall be put on record.
Article 26 Information subjects holding that any credit investigation institutions, information providers or information users have infringed upon their legal rights and interests may lodge complaints to the local offices of the supervisory and administrative department of credit investigation under the State Council. The local offices of the supervisory and administrative department of credit investigation under the State Council shall check and handle in a timely manner, and give written replies to complainants within 30 days as of the date of acceptance. Information subjects holding that any credit investigation institutions, information providers or information users have infringed upon their legal rights and interests may directly bring charges to people’s courts.
Chapter V Basic Financial Credit Information Database
Article 27 The state shall establish a Basic Financial Credit Information Database to provide information services for preventing financial risks and enhancing the development of the financial sector. The Basic Financial Credit Information Database shall be built, run and maintained by a specialized non-for-profit institution subject to the supervision and administration of the supervisory and administrative department of credit investigation under the State Council.
Article 28 The Basic Financial Credit Information Database receives credit information provided by institutions engaged in credit business according to the relevant provisions. The Basic Financial Credit Information Database provides inquiry services for information subjects and information users that have obtained the written consents of information subjects. State organs may inquire about information at the Basic Financial Credit Information Database by law.
Article 29 Institutions engaged in credit business shall provide credit information to the Basic Financial Credit Information Database according to the relevant provisions. Before providing credit information to the Basic Financial Credit Information Database or other subjects, institutions engaged in credit business shall obtain the written consent of information subjects and be governed by this Regulation as information providers.
Article 30 The specific measures for financial institutions not engaged in credit business to provide credit information to or inquire about credit information from the Basic Financial Credit Information Database and for the database to accept credit information provided by such financial institutions shall be made by the supervisory and administrative department of credit investigation under the State Council together with the relevant financial supervisory and administrative department under the State Council.
Article 31 The institution operating the Basic Financial Credit Information Database may collect inquiry service charges on the cost compensation principle. The charging rates shall be determined by the price administrative department under the State Council.
Article 32 Articles 14, 16, 17, 18, 22, 23, 24, 25 and 26 of this Regulation apply to the institution operating the Basic Financial Credit Information Database.
Chapter VI Supervision and Administration
Article 33 The supervisory and administrative department of credit investigation under the State Council and the local offices thereof shall, according to laws, administrative regulations and the State Council provisions, perform supervisory and administrative duties on the credit investigation industry and the institution operating the Basic Financial Credit Information Database, and may take the following supervision and inspection measures:
1. entering credit investigation institutions and the institution operating the Basic Financial Credit Information Database to make on-site inspections, and checking whether institutions providing information to or acquiring information from the Basic Financial Credit Information Database have observed this Regulation;
2. interviewing the parties concerned or entities and individuals relating to the event under investigation and asking them to make explanations on matters relating to the event under investigation;
3. consulting and copying documents or materials relating to the event under investigation, and sealing up materials likely to be transferred, destroyed, concealed or altered; and
4. checking the relevant information systems. The number of on-site inspectors or investigators shall not be less than two, and they shall produce their lawful credentials and the inspection or investigation notice. Entities and individuals under inspection or investigation shall be cooperative and truthfully provide the relevant documents or materials, and may not withhold information or refuse or obstruct the inspection or investigation.
Article 34 Where a major information divulgence occurs to a credit investigation institution engaged in individual credit investigation, the Basic Financial Credit Information Database or an institution providing information to or acquiring information from the Basic Financial Credit Information Database, the supervisory and administrative department of credit investigation under the State Council may temporarily take over the relevant information system or take other necessary measures to prevent the increase of damage.
Article 35 The staff members of the supervisory and administrative department of credit investigation under the State Council and the local offices thereof shall keep confidential state secrets and information subjects’information which they have access to in the course of performing duties.
Chapter VII Legal Liability
Article 36 Where any entity or individual forms a credit investigation institution engaged in individual credit investigation or engages in individual credit investigation without the approval of the supervisory and administrative department of credit investigation under the State Council, the supervisory and administrative department of credit investigation under the State Council shall close it down and impose a fine of not more than 500,000 yuan but not less than 50,000 yuan. If any crime is constituted, the liable party shall assume criminal liability.
Article 37 Where any credit investigation institution engaged in individual credit investigation violates Article 9 of this Regulation, the supervisory and administrative department of credit investigation under the State Council shall order it to correct within a certain time limit, impose a fine of not more than 200,000 yuan but not less than 20,000 yuan upon the institution and, for the directly responsible person in charge and other directly liable persons, give a warning and impose a fine of not more than 10,000 yuan. Where any credit investigation institution engaged in enterprise credit investigation fails to handle filing formalities under Article 10 of this Regulation, the local office of the supervisory and administrative department of credit investigation under the State Council shall order it to correct within a certain time limit and, if it fails to correct within the prescribed time, punish it according to the preceding paragraph.
Article 38 Where any credit investigation institution or the institution operating the Basic Financial Credit Information Database, in violation of this Regulation, has any of the following conduct, the supervisory and administrative department of credit investigation under the State Council or the local office thereof shall order it to correct within a certain time limit, impose a fine of not more than 500,000 yuan but not less than 50,000 yuan upon the institution and a fine of not more than 100,000 yuan but not less than 10,000 yuan upon the directly responsible person in charge and other directly liable persons, and confiscate the illegal gains if any. If any losses are caused to information subjects, the liable party shall assume civil liability; if any crime is constituted, the liable party shall assume criminal liability:
1. stealing information or otherwise illegally acquiring information;
2. collecting individual information whose collection is prohibited or without the consent of information subjects;
3. illegally providing or selling information;
4. divulging information due to negligence;
5. failing to delete bad information of individuals upon the expiration of the prescribed retention period;
6. failing to check and handle information at which demurs have been raised as required;
7. refusing or impeding the inspection or investigation activities of the supervisory and administrative department of credit investigation under the State Council or the local office thereof, or failing to truthfully provide the relevant documents or materials; or
8. any other conduct that violates the credit investigation rules or infringes upon the legal rights and interests of information subjects. Where any credit investigation institution engaged in individual credit investigation has any of the above-mentioned conduct, and if the circumstances or consequences are serious, the supervisory and administrative department of credit investigation under the State Council shall revoke its individual credit investigation business operation permit.
Article 39 Where any credit investigation institution, in violation of this Regulation, fails to report its credit investigation business operations of the last year as required, the supervisory and administrative department of credit investigation under the State Council or the local office thereof shall order it to correct within a certain time limit; if the institution fails to correct within the prescribed time, it shall impose a fine of not more than 100,000 yuan but not less than 20,000 yuan upon the institution and, for the directly responsible person in charge and other directly liable persons, give a warning and impose a fine of not more than 10,000 yuan.
Article 40 Where any institution providing information to or acquiring information from the Basic Financial Credit Information Database, in violation of this Regulation, has any of the following conduct, the supervisory and administrative department of credit investigation under the State Council or the local office thereof shall order it to correct within a certain time limit, impose a fine of not more than 500,000 yuan but not less than 50,000 yuan upon the institution and a fine of not more than 100,000 yuan but not less than 10,000 yuan upon the directly responsible person in charge and other directly liable persons, and confiscate the illegal gains if any. If any losses are caused to information subjects, the liable party shall assume civil liability; if any crime is constituted, the liable party shall assume criminal liability:
1. illegally providing or selling information;
2. divulging information due to negligence;
3. inquiring about personal information or the credit information of enterprises without consent;
4. failing to handle demurs as required or correct information with errors or omissions; or
5. refusing or impeding the inspection or investigation activities of the supervisory and administrative department of credit investigation under the State Council or the local office thereof, or failing to truthfully provide the relevant documents or materials;
Article 41 Where any information provider, in violation of this Regulation, provides any credit investigation institution or the Basic Financial Credit Information Database with any individual’s bad information which is not information that should be disclosed according to law without notifying the individual beforehand, and if the circumstances or consequences are serious, the supervisory and administrative department of credit investigation under the State Council or the local office thereof shall impose a fine of not more than 200,000 yuan but not less than 20,000 yuan if the provider is an entity or a fine of not more than 50,000 yuan but not less than 10,000 yuan if the provider is an individual.
Article 42 Where any information user, in violation of this Regulation, uses personal information for purposes not agreed upon with the information subject or provides individual information to any third party without the consent of the information subject, and if the circumstances or consequences are serious, the supervisory and administrative department of credit investigation under the State Council or the local office thereof shall impose a fine of not more than 200,000 yuan but not less than 20,000 yuan if the user is an entity or a fine of not more than 50,000 yuan but not less than 10,000 yuan if the user is an individual; and confiscate the illegal gains if any. If any losses are caused to information subjects, the user shall assume civil liability; if any crime is constituted, the user shall assume criminal liability.
Article 43 Where any staff member of the supervisory and administrative department of credit investigation under the State Council or its local offices abuses powers, neglects duties, engages in malpractice for personal gains, fails to perform supervisory and administrative duties, or divulges state secrets or information of information subjects, sanctions shall be imposed by law. If any losses are caused to information subjects, he/she shall assume civil liability; if any crime is constituted, he/she shall assume criminal liability.
Chapter VIII Supplementary Provisions
Article 44 The meaning of terms mentioned in this Regulation is as follows:
1. Information providers refer to entities and individuals providing information to credit investigation institutions and entities providing information to the Basic Financial Credit Information Database.
2. Information users refer to entities and individuals acquiring information from credit investigation institutions and the Basic Financial Credit Information Database.
3. Bad information refers to information which exerts adverse impact on the credit standing of information subjects, such as: information about information subjects’failure to perform contracts in loaning, credit purchasing, guarantee, lease, insurance and credit card use activities; information about administrative punishments on information subjects; information about the judgments or rulings of people’s courts deciding that information subjects shall perform obligations or be subject to enforcement measures; and other bad information as specified by the supervisory and administrative department of credit investigation under the State Council.
Article 45 The conditions for the formation of foreign-funded credit investigation institutions shall be made by the supervisory and administrative department of credit investigation under the State Council together with other relevant departments under the State Council, and be subject to the approval of the State Council. Overseas credit investigation institutions shall obtain the approval of the supervisory and administrative department of credit investigation under the State Council before engaging in credit investigation inside China.
Article 46 Institutions which have already been engaged in individual credit investigation before the implementation of this Regulation shall apply for individual credit investigation business operation permits according to this Regulation within six months as of the date of implementation of this Regulation. Institutions which have already been engaged in enterprise credit investigation before the implementation of this Regulation shall handle filing formalities according to this Regulation within three months as of the date of implementation of this Regulation.
Article 47 This Regulation shall come into force on March 15, 2013.