On November 8, the China State Administration of Foreign Exchange ("SAFE") issued the Measures for the Determination of Administrative Penalties for Foreign Exchange Administration (the "Measures"), with effect on the date of issuance.
The Measures, consisting of four chapters and 18 articles, detail the circumstances under which administrative penalties shall be imposed for foreign exchange administration purposes as well as the range of penalties. Under the Measures, those who voluntarily confess illegal acts that the administrative agency has not yet known or cooperate with the administrative agency in investigating and punishing the illegal acts with meritorious service shall be given a lighter or mitigated administrative punishment. The Measures clarify that a director, supervisor, senior manager, or any other directly liable person of a financial institution who deliberately violates regulations for seeking illegal benefits, or who prompts other persons to violate regulations through coercion, collusion or instigation, shall be given a warning and fined not less than CNY50,000 but not more than CNY500,000, in addition to imposition of punishment on the financial institution.
(Source: China State Administration of Foreign Exchange)
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