Measures on the Selection and Management of Professionals for the Third-party Mechanism for the Oversight and Assessment of Compliance by Enterprises Involved in Cases

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These Measures are drafted in consideration of actual work conditions so as to thoroughly implement Xi Jinping thought on Socialism with Chinese Characteristics in the New Era, full implement Xi Jinping Thought on the Rule of Law, completely, correctly and fully implement the new concept of development, and earnestly implement the Guiding Opinions on the Establishment of a Third-Party Oversight and Assessment System for the Compliance of Enterprises Involved in Criminal Cases (Guiding Opinions) of the Supreme People's Procuratorate, Ministry of Justice, Ministry of Finance, Ministry of Ecology and Environment, State-owned Assets Administration of the State Council, State Administration of Taxation, State Administration of Market Regulation, All-China Federation for Industry and Commerce, and China Council for the Promotion of International Trade, to regulate efforts on the selection and management of professionals in the third-party mechanism for the oversight and assessment of compliance by enterprises involved in criminal cases, and to ensure the effective operation of the third-party oversight and assessment mechanisms for the compliance of enterprises involved in cases (third-party mechanism).

Chapter I: General Provisions

Article 1: "Third-party mechanism professionals" refers to relevant professionals who were selected and confirmed by the Commission for the Management of the Third-Party Marchanism for the Oversight and Assessment of Enterprises Involved in the Case (hereinafter the commission for the management of the third-party mechanism") as members in the third-party organization, primarily including lawyers, registered accountants, tax agents (registered tax agents) enterprise compliance agents, expert scholars in relevant fields and professionals in relevant industry associations, chambers of commerce, institutions, or social groups (hereinafter 'relevant organizations").

Personnel in government work departments such as for the ecology and the environment, taxation, ad market administration who have specialized knowledge may be selected and confirmed as third-party mechanism professionals, or may be invited by the commission for the management of the third-party mechanism or appointed by their unit to participate in the third-party organizations and their relevant work, with the commission for the management of the third-party mechanism and the unit to which they belong consulting on the specific matters of their management. Professionals in the enterprises or public institutions to which government departments belong may be selected and confirmed as third-party mechanism professionals to participate in third-party organizations and their relevant work.

Where retired personnel from relevant units who have specialized knowledge participate in the third-party organizations and their relevant work, they shall also concurrently comply with provisions on the management of retired personnel.

Article 2: The selection and management of third-party mechanism professionals shall comply with the principles of compliance with laws and regulations, transparency and equity, hierarchical responsibility, and accepting oversight.

Article 3: All levels of commission for the management of the third-party mechanism are to plan and coordinate work such as the selection, training, evaluation, incentives, and oversight of third-party mechanism professionals at that level.

The national level commission for the management of the third-party mechanism is responsible for researching and drafting normative documents involving third-party mechanism professionals, and for safeguarding and encouraging the system, and for planning and coordinating efforts related to third-party mechanism professionals on a national scope.

Higher-level commissions for the management of the third-party mechanism are to strengthen specific guidance for lower-level commissions for the management of the third-party mechanism involving third-party mechanism professionals.

Chapter II: The Selection of third party mechanism professionals

Article 4: The national-level, provincial-level, and prefecture-level city commissions for the management of the third-party mechanism shall build a directory of third-party mechanism professionals (hereinafter " directory") for their respective levels. After review and consent of a provincial-level commission for the management of the third-party mechanism, county-level commissions for the management of the third-party mechanism may build a directory.

Article 5: Individuals are to be the entities entered into the directories; units and groups must not be entered into the directories.

The directories shall be established by category and the total number of persons included must not be less than 50. The total number of persons, organizational structure, and number of persons for each professional field may be determined by the commissions for the management of the third-party mechanism based on work needs, and may be adjusted in light of the actual circumstances.

The persons in directories for the provincial level and below are to be limited to professionals in that province (autonomous region directly governed municipality). Where there are insufficient numbers of persons to meet the established requirements, the provincial commissions for the management of the third-party mechanism may plan and coordinate the joint establishment of directories by neighboring cities.

Article 6: Third-party mechanism professionals shall have a better political caliber and ethical character, possess the specialized knowledge, operational capacity, time, and energy to perform third-party oversight and assessment efforts, and the units or relevant organizations to which they belong are to consent to their participation in the third-party oversight and appraisal work.

Third-party mechanism professionals shall normally possess the following requirements:

(1) Uphold the leadership of the Chinese Communist Party and our nation's socialist legal system;

(2) Have good moral character and professional ethics;

(3) Have credentials for the corresponding industry and have practiced for at least three years;

(4) Have exceptional operational levels and satisfactory or higher evaluation levels for the last three years;

(5) Be familiar with enterprise operations management or have relevant specialized knowledge;

(6) Have not received administrative punishments or discipline related to the industry in the last three years;

(7) Have no circumstances such as having received criminal penalties, been removed from official positions, or expelled from the Party;

(8) Have no other situations making them unsuited to perform the position;

Article 7: The commissions for the management of the third-party mechanism shall normally organize the implementation of third-party mechanism professional selection work in accordance with the procedures such as drafting plans, publication and announcement, individual applications, unit recommendations, review of materials, observation and understanding, initial selection, display and oversight, determination of candidates, and issuing credentials.

Article 8: Commissions for the management of the third-party mechanism that are organizing and implementing the selection of third-party mechanism professionals shall publish and announce them on the official websites of their member units or the lawyers associations, certified accountants associations, registered tax agent associations, and other related organizations to which they belong or are in charge of.

The announcement shall indicate relevant matters such as the number of persons selected, the standards and requirements, the methods of nomination, nomination materials, and work processes for the selection, and the period of the announcement is to normally be at least 20 working days.

Article 9: The commission for the management of the third-party mechanism may use methods such as reviewing materials, informational visits, and interview testing to conduct reviews and observation of nominees and submit candidates for inclusion in the directory on this foundation.

The commission for the management of the third-party mechanism may learn about and confirm matters relevant to candidates for inclusion in the directory from the relevant organizations that member units belong to or are in charge of.

Article 10: The commission for the management of the third-party mechanism shall publicly display the list of entries in the directory and the oversight and contact methods. and accept societal oversight. The display may be conducted in forms such as publication in the candidates' units or related news media or websites, and the display period is normally to be at least seven working days.

The commission for the management of the third-party mechanism shall promptly conduct an investigation and verification of materials that are reported or feedback on circumstances, and submit comments on addressing them in light of the circumstances. In the course of the investigation and on the basis of the circumstances, they may communicate and contact the informants and persons giving feedback.

Article 11: When determining candidates for entry into the directory, the commission for the management of the third-party mechanism shall comprehensively consider the nominees' political caliber, practice (work) experience, work performance, research achievements, commendations or awards, and the qualifications, scale of personnel, awards,, industry impact. Where other conditions are equivalent, priority consideration may be given to candidates who serve as party delegates, people's conference delegates, political consultative conference members, or in positions at people's organizations.

Article 12: Where, after the display period is complete, there are no objections, or upon review, the objections are not sustained, the commission for the management of the third-party mechanism shall issue credentials to those being entered in the directory, and notify their unit or the organization to which they belong. Personnel in the directory shall be published on the official websites of the member units of the commission for the management of the third-party mechanism for public queries.

The commission for the management of the third-party mechanism shall indicate the period that persons in the directory will serve, normally to be between two and three years. After review by the commission for the management of the third-party mechanism, they may serve again at the completion of the period.

Chapter III: The Routine Management of Third-party Mechanism Professionals

Article 13: As needed for the performance of duties, the third-party mechanism professionals may read relevant documents and materials, participate in related meetings and monitoring activities, and receive operational training.

Article 14: The third-party mechanism professionals shall earnestly perform their duties and be diligent and responsible, and are to strictly perform obligations provided for by relevant laws and regulations and the Guiding Opinions in their performance of duties, such as on confidentiality, recusal, and integrity.

Article 15: The commission for the management of the third-party mechanism shall consider the state of third-party work on the oversight and assessment of compliance by enterprises involved in cases, in regularly organizing third-party mechanism professionals to conduct training, carry out survey observations and symposia exchanges, and summarize and spread experience and methods.

The relevant member units of the commission for the management of the third-party mechanism shall guide the related organizations to which they belong or are in charge of, to strengthen theoretical and practical research involving the third-party mechanism and in actively carrying out operational training and work guidance.

Article 16: The commission for the management of the third-party mechanism may use methods such as regular evaluations, individual case assessments, random sampling, and patrol inspections to conduct evaluations and assessments of third-party mechanism professionals. The evaluation outcomes are to be an important basis for awards and commendations, continued service or transfer out of the Directory for third-party mechanism professionals.

Article 17: The commission for the management of the third-party mechanism shall establish and complete a commendation and award system for third-party mechanism professionals, giving awards and commendations to third-party mechanism professionals with outstanding performance or recommending that the unit or related organizations to which they belong give awards and commendations.

Article 18: The commission for the management of the third-party mechanism shall promptly give written notice of evaluation outcomes and awards and commendations to the individual and the units or related organizations to which they belong, and may make a public announcement through relevant media.

Article 19: The commission for the management of the third-party mechanism shall establish and complete a ledger on third-party mechanism professionals' performance of their duties, comprehensively and objectively recording third-party mechanism professionals' operational training, participation in activities, and performance of duties, to be used as an important reference in determining evaluation outcomes.

Article 20: When the commission for the management of the third-party mechanism conducts evaluations and assessments of third-party mechanism professionals' performance of their duties, they shall proactively solicit the comments and recommendations of the procuratorate handling the case, inspection patrol teams, the enterprises involved in the case, and so forth.

Article 21: Where third party mechanism professionals have any of the following situations, the evaluation assessment outcome should be not passing, and the subsequent handling is to be done in light of the circumstances:

(1) They do not participate in the third-party organization work or do not accept the tasks assigned by the commission for the management of the third-party mechanism, and do not have a legitimate reason;

(2) Major errors appear in their performance of third-party oversight and assessment duties, causing a negative impact;

(3) They have improper conduct during the performance of third-party oversight and assessment duties, and the enterprise involved in the case gives feedback to the commission for the management of the third-party mechanism or submits an objection, causing a negative impact;

(4) Other circumstances that cause a negative impact or harm the image or credibility of the third-party organizations.

Article 22: The commission for the management of the third-party mechanism may speak with to warn or criticize and educate third-party mechanism professionals that violate work obligations, or notify the units or relevant organizations to which they belong, and where the circumstances are serious or cause serious consequences, they may transfer them out of the Directory.

Where third party mechanism professionals have any of the following situations, the commission for the management of the third-party mechanism shall promptly transfer them out of the Directory:

(1) They are deceptive of misleading during the course of selection or performance of duties, or provide false materials and circumstances;

(2) They receive criminal penalties, are removed from official positions, or are expelled from the Party;

(3) They receive administrative punishments or industry penalties, and the circumstances are serious.

(4) The violate item (4) of the second paragraph of article 17 of the Guiding Opinions;

(5) In their capacity as third-party mechanism professionals, they speak about matters unrelated to their duties or engage in activities unrelated to their duties, causing serious negative consequences;

(6) The are determined to be unsatisfactory two times in evaluation and assessment outcomes;

(7) They seriously violate social mores or professional ethics, or have other conduct that seriously harms the image or credibility of third-party mechanism professionals.

(8) Other situations that make them unsuited to continue performing third-part oversight and assessment duties.

Where the commission for the management of the third-party mechanism discovers conduct of third-party mechanism professionals that is suspected of violating the rules, they shall promptly reflect the situation to the organs in charge or to the units or relevant organs to which they belong, and submit recommendations for penalties or addressing it; where there are suspected of violations or crimes,, they shall make a report or give information to the competent organs.

Article 23: The commission for the management of the third-party mechanism shall establish and complete a system for prohibiting the entry of third-party mechanism professionals into the directory. Third-party mechanism professionals who are transferred out of the Directory in accordance with article 22 of these Measures shall be included in the prohibition directory.

The commission for the management of the third-party mechanism shall compile and report the persons included in the prohibition list up through the levels to bring about information sharing.

Article 24: Where third-party mechanism professionals cannot perform their duties for objective reasons, are unwilling to continue performing duties, or have major matters that impact their performance of duties, they shall promptly report and explain the situation to the commission for the management of the third-party mechanism and proactively resign as third party mechanism professionals. The commission for the management of the third-party mechanism shall promptly conduct a review and transfer them from the directory.

Article 25: As needed for work, the commission for the management of the third-party mechanism shall consider the ledger on the performance of duties, evaluations, and the individuals' wishes, the opinions of the unit or relevant organization to which they belong, and other such factors, to regularly or irregularly conduct dynamic management of persons in the Directory. After the Directory is adjusted and updated, it shall be promptly published to the public in accordance with article 12 of these Measures.

Chapter IV: Work Assurances

Article 26: The member units of the commission for the management of the third-party mechanism and the units and relevant organizations to which third-party mechanism professionals belong, as well as the enterprises involved in cases, shall provide necessary support and facilitation for third-party mechanism professionals performing their duties.

Article 27: Pilot sites may consider actual local conditions and explore multiple source models to ensure the expenses required for the selection and management of third-party mechanism professionals and that they need for the performance of their duties.

Chapter V: Supplementary Provisions

Article 28: All levels of local commissions for the management of the third-party mechanism may draft specific implementation rules in consideration of local conditions and with reference to these Measures, and report them for filing in accordance with pilot work requirements.

Relevant departments and organizations may consider the actual conditions in the corresponding industry or department to draft specific selection standards for Directory personnel.

Where directories built by any area at any level prior to the release of these Measures do not comply with these Measures, they may continue as a pilot.

Article 29: The Supreme People's Procuratorate, State Council State-owned Assets Supervision and Administration Commission, Ministry of Finance, and All-China Federation of Industry and Commerce are responsible for the interpretation of these Measures in conjunction with the Ministry of Justice, Ministry of ecology and the Environment, State Administration of Taxation, State Administration for Market Regulation, and China Association for the Promotion of Trade; they are to take effect from their date of issue.

 

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