Decision of the Standing Committee of the National People's Congress on Punishing Crimes of Fraudulently Purchasing, Evading and Illegally Trading in Foreign Exchange

For the purpose of punishing the criminal acts of fraudulently purchasing, evading and illegally trading in foreign exchange and maintaining the State's control over foreign exchange, the following provisions are made to amend and supplement the Criminal Law:

1. Whoever fraudulently purchases foreign exchange by any of the following means shall, if the amount involved is relatively large, be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also be fined not less than 5 percent but not more than 30 percent of the amount of foreign exchange fraudulently purchased; if the amount involved is huge, or if there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years and shall also be fined not less than 5 percent but not more than 30 percent of the amount of foreign exchange fraudulently purchased; if the amount involved is especially huge, or if there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than ten years or life imprisonment and shall also be fined not less than 5 percent but not more than 30 percent of the amount of foreign exchange fraudulently purchased or his property shall be confiscated:

(1) using forged or altered certificates or documents such as the declaration forms and the import certificates issued by the Customs and the verification certificates of the department for control over foreign exchange;

(2) repeatedly using certificates or documents such as the declaration forms and the import certificates issued by the Customs and the verification certificates of the department for control over foreign exchange; or

(3) by any other means.

Whoever forges or alters certificates or documents such as the declaration forms and the import certificates issued by the Customs and the verification certificates of the department for control over foreign exchange and uses such certificates or documents to fraudulently purchase foreign exchange shall be given a heavier punishment in accordance with the provisions in the preceding paragraph.

Whoever provides funds in Renminbi while clearly knowing that they are to be used for fraudulent purchase of foreign exchange shall be regarded as a joint offender and punished as such.

Where a unit commits the crimes mentioned in the preceding three paragraphs, it shall be fined in accordance with the provisions of the first paragraph and, in addition, the persons who are directly in charge of the unit and the other persons who are directly responsible for the crime shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention; if the amount involved is huge, or if there are other serious circumstances, they shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years; if the amount involved is especially huge, or if there are other especially serious circumstances, they shall be sentenced to fixed-term imprisonment of not less than ten years or life imprisonment.

2.Whoever buys or sells forged or altered certificates or documents such as the declaration forms and the import certificates issued by the Customs and the verification certificates of the department for control over foreign exchange or other documents, certificates or seals of a State organ shall be convicted and punished in accordance with the provisions of Article 280 of the Criminal Law.

3. Article 190 of the Criminal Law is revised as follows: Any company, enterprise or any other unit that, against State regulations, deposits foreign exchange outside of China or illegally transfers foreign exchange from inside China to any other countries shall, if the amount involved is relatively huge, be fined not less than 5 percent but not more than 30 percent of the amount of the evaded foreign exchange and, in addition, the persons who are directly in charge of the unit and the other persons who are directly responsible for the crime shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention; if the amount involved is huge, or if there are other serious circumstances, the unit shall be fined not less than 5 percent but not more than 30 percent of the amount of evaded foreign exchange and, in addition, the persons who are directly in charge of the unit and the other persons who are directly responsible for the crime shall be sentenced to fixed-term imprisonment of not less than five years.

4. Whoever illegally trades in foreign exchange in places other than the ones designated by the State for such trade and thus disrupts market order shall, if the circumstances are serious, be convicted and punished in accordance with the provisions of Article 225 of the Criminal Law.

Where a unit commits the crime mentioned in the preceding paragraph, it shall be punished in accordance with the provisions of Article 231 of the Criminal Law.

5. Where a staff member of the Customs, the departments for control over foreign exchange, financial institutions, companies or enterprises engaged in foreign trade or any other unit conspires with the persons who fraudulently purchase or evade foreign exchange, providing them with relevant certificates for purchase of foreign exchange or other conveniences, or sells or pays in foreign exchange while clearly knowing that the certificates or documents are forged or altered, he shall be regarded as a joint offender and given a heavier punishment in accordance with this Decision.

6. Any staff member of the Customs and the departments for control over foreign exchange who, through his gross neglect of duty, results in a large amount of foreign exchange fraudulently purchased or evaded, thus causing heavy losses to the interests of the State, shall be convicted and punished in accordance with the provisions of Article 397 of the Criminal Law.

7. Any staff member of financial institutions and companies or enterprises engaged in foreign trade who, through his gross neglect of duty, results in a large amount of foreign exchange fraudulently purchased or evaded, thus causing heavy losses to the interests of the State, shall be convicted and punished in accordance with the provisions of Article 167 of the Criminal Law.

8. All the money and property recovered or confiscated and the fines imposed for committing the crimes mentioned in this Decision shall be turned over to the State treasury.

9. This Decision shall go into effect as of the date of promulgation.