Since 2018, CITIC Bank has received fines amounting to more than RMB 20 million for four consecutive years.
On March 19, the Communist Party of China (CPC) Banking and Insurance Regulatory Commission (CBIRC) issued a public statement of administrative penalties against CITIC Bank, which was fined 4.5 million yuan (RMB) for major violations of the law, including the collection and protection of customer information. The date of making the penalty decision is March 17, 2021.
In May last year, stand-up comedian Ji Zi posted on Weibo that CITIC Bank’s Shanghai Hongkou Sub-branch had provided his personal account flow to Shanghai Xiaoguo Culture Media Co. without authorization.
Chi believes that this action by CITIC Bank violated his rights and interests, and he sent a letter through his lawyer demanding that CITIC Bank and Xiaoguo Culture compensate for the loss and publicly apologize.
In response to Chi’s report, CITIC Bank had publicly issued an apology letter on its official microblog, saying that the bank had disciplined the relevant employees and dismissed the branch head. Once the internal punishment was announced, it once again sparked widespread concern from all walks of Life. Some netizens questioned that CITIC Bank’s punishment was not strong enough.
China CITIC Bank, the seventh-largest bank in mainland China, has a major shareholder in China CITIC Group Corporation, a Communist Party central enterprise.
This is not the first Time CITIC Bank has received a fine. Upon checking, it was found that the bank has received fines amounting to more than 20 million yuan for several years since 2018.
In November 2018, CITIC Bank was fined 22.8 million yuan for six crimes, including illegal payment of land for wealth management funds and financing of wealth management products with the bank’s credit funds.
In July 2019, CITIC Bank was fined RMB 22,236,677,000 for thirteen violations involving failure to provide statements as required and overdue corrections, misappropriation of loan funds due to inadequate post-loan management, and inconsistent use of risk weights for investments in non-principal-protected wealth management products of the same banking institution during the same period.
In February 2020, CITIC Bank was fined RMB20.2 million for nineteen violations including issuing land reserve loans in violation of regulations, making fiduciary payments that did not comply with regulatory requirements, and providing financing for real estate enterprises to pay land acquisition costs in violation of regulations.
Just last month on the 5th, the Central Bank of the Communist Party of China issued the number one fine: CITIC Bank was fined 28.9 million yuan for violating anti-money laundering related regulations. According to statistics from the mainland media, CITIC Bank has been fined more than 41 million yuan this year.
In addition, CITIC Bank’s president Sun Deshun was placed under investigation by the authorities in March last year. In September of the same year, former CITIC Bank Vice President Chen Xu Ying (female) was sentenced to 15 years in prison in the first instance for accepting bribes. Chen was investigated for her involvement in a loan violation case involving Bao Xueqin, a former vice president of CITIC Trust.
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