NFRA Issues Rules on Compliance Management of Financial Institutions
ISSUING AUTHORITY:
National Financial Regulatory Administration
DATE OF ISSUANCE:
December 25, 2024
EFFECTIVE DATE:
March 1, 2025
On December 25, 2024, the Rules on Compliance Management of Financial Institutions (“Rules”) was issued by National Financial Regulatory Administration (NFRA), and has come into effect on March 1, 2025. The Rules consists of 58 articles in 5 chapters: General Provisions, Compliance Management Structure and Responsibilities, Safeguards for Compliance Management, Supervision, Management and Legal Liabilities and Supplementary Provisions.
As an important part of the financial regulatory system, the Rules summarize the practical experience of compliance management of financial institutions in China, including the use of Law of the People's Republic of China on Banking Regulation, Law of the People's Republic of China on Commercial Banks, Social Insurance Law of the People’s Republic of China, and Trust Law of the People's Republic of China, putting forward systematic requirements for the compliance management of financial institutions. It sets forth the roles and responsibilities of the chief compliance officer (CCO), compliance officers and compliance departments, requiring financial institutions to establish a CCO at their head office. After the Central Financial Work Conference, the financial regulators continued to promote the construction of the financial rule of law, and the issuance of the Rules marks the compliance management of China's financial institutions into a new stage of standardization and institutionalization.
The issuance of the Rules reflects China's determination and action to strengthen the prevention and control of financial risks and promote the high-quality development of the financial industry. The implementation of the new regulations will further enhance the level of compliance management of financial institutions, strengthen market confidence, and provide a strong guarantee for the sound operation of China's financial industry.
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