MOU on Implementation of Joint Punishments against Seriously Untrustworthy Enterprises in the Social Insurance Field and their Staffs

Promulgation Date: 2018-11-22
Title: 印发《关于对社会保险领域严重失信企业及其有关人员实施联合惩戒的合作备忘录》的通知
Document Number:发改财金〔2018〕1704号
Expiration date:
Promulgating Entities: 国家发展和改革委员会 中国人民银行 人力资源和社会保障部等
Source of text: http://www.ndrc.gov.cn/zcfb/zcfbtz/201811/t20181129_921188.html

The following Opinions on efforts to Carry Out Joint Punishments Against against Seriously Untrustworthy Enterprises in the Social Insurance Field and their Staffs are hereby given so as to implement the spirit of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the 19th Party Congress, to implement the requirements of the "Social Insurance Law", the "State Council Notice on the Issue of the Planning Outline for the Establishment of a Social Credit System (2014-2020)" (Guofa (2014) No. 21), the "State Council Guiding Opinion on Establishing and Improving a system of Joint Rewards for Trustworthiness and Joint Disciplinary Action Against Untrustworthiness to Accelerate the Establishment of Societal Creditworthiness" (Guoafa (2016) No.33) and other such documents, and accelerate the establishment of a credit system and establish and complete mechanisms for joint disciplinary action across departments, and to combat illegal untrustworthy conduct in the social insurance section; and has been agreed upon by the National Development and Reform Commission, People's Bank of China, Ministry of Human Resources and Social Security, Organization Department of the CPCC, Publicity Department of the CCCPC, State Commission Office for Public Sector Reform, Civilization Office of the CPCC, Internet Information Office of the CPCC, Ministry of Industry and Information, Ministry of Finance, Ministry of Natural Resources, Ministry of Housing and Urban and Rural Development, Ministry of Transport, Ministry of Water Resources, Ministry of Commerce, Health and Sanitation Commission, Ministry of Emergency Management, State-owned Assets Supervision and Administration Commission, General Customs Administration, State Administration of Taxation, State Administration for Market Regulation, International Development and Cooperation Agency, Medical Insurance Bureau, Banking Insurance Regulatory Commission, Securities Regulatory Commission, Civil Aviation Administration, Foreign Exchange Bureau, China Railway Company, and other such departments.

I. Targets for Punishment

Targets for joint disciplinary action refers to enterprises, public institutions, and their relevant personnel, who have been designated by the Ministry of Human Resources and Social Security, State Administration of Taxation, and Medical Insurance Bureau, together with relevant departments, as having violated laws, regulations and rules related to social insurance; and seriously untrustworthy or improper conduct primarily includes:

(1) Where employment units have not followed provisions to participate in social insurance and refuse to make corrections;

(2) Where employment units have not truthfully reported social insurance fund payments and refuse to make corrections;

(3) Where payments into social insurance should be made but they refuse to make them;

(4) Where social insurance fees or funds or improper investment operations are concealed, transferred, embezzled or misappropriated;

(5) Where methods such as falsifying or fabricating supporting materials are used in participating in or reporting on social insurance, and fraudulently obtaining social insurance fund payments or social insurance benefits;

(6) Illegally obtaining, selling, or covertly trading in data on personal social insurance rights;

(7) Where social insurance service establishments violate service agreements or related provisions;

(8) Refusing to assist administrative departments for social insurance, upon the handling establishments having conducted an investigation and verified an accident; refusing to accept or assist in taxation departments' implementation of oversight inspections, or not truthfully providing materials related to each project related to social insurance;

(9) Other violations of laws and regulations.

II. Methods for Carrying out Information Sharing and Joint Punishment

The Ministry of Human Resources and Social Security, State Administration of Taxation, and Medical Insurance Administration are to provide other departments and units that are signatories to this MOU with information on the untrustworthiness of employing units in the social insurance sector through the national credit information sharing platform in accordance with law and rules, and announce it to the public through the "Credit China" website, the national enterprise credit information disclosure system, the the websites of the Ministry of Human Resources and Social Security, State Administration of Taxation, and Medical Insurance Administration. Relevant departments and units are to follow the provisions of this MOU to carry joint disciplinary action measures, and in light of actual conditions, and use the national credit information sharing platform to periodically report on the implementation of joint disciplinary action to the National Development and Reform Commission, the Department of Human Resources and Social Security, the State Administration of Taxation, and the Medical Insurance Administration.

III. Punishment Measures

(1) Restrictions on recruitment (hiring) of untrustworthy persons as civil servants or public institution staff.

(Implementing Units: Organization Department of the CPCC, Ministry of Human Resources and Social Security, and other relevant departments)

(2) List untrustworthy enterprises as targets for key oversight and inspections, increase the frequency of social insurance oversight and inspections and audits, and conduct in violation of laws and regulations is discovered again, extend the period of announcement.

(Implementing Units: Ministry of Human Resources and Social Security, State Administration of Taxation, Bureau of Medical Insurance

(3) Restrict untrustworthy enterprises' participation in cooperative projects on social insurance operations.

(Implementing Units: Ministry of Human Resources and Social Security and other relevant departments)

(4) Restrict the convenience of untrustworthy units handling social insurance operations.

(Implementing Units: Ministry of Human Resources and Social Security and other relevant departments)

(5) Lawfully restrict untrustworthy enterprises' applications for government subsidies and social security funding supports.

(Implementing Units: The National Development and Reform Commission, Ministry of Finance, Ministry of Human Resources and Social Security, State-owned Assets Supervision and Administration Commission, and other relevant departments）

(6) Lawfully restrict untrustworthy enterprises' participation as a supplier in government procurement activities.

(Implementing Units: Ministry of Finance)

(7) Lawfully make information on untrustworthy conduct an important consideration in selection of partners for public-private cooperative projects such as basic infrastructure and utility concessions.

(Implementing Units: National Development and Reform Commission, Ministry of Finance)

(8) Make information on untrustworthiness a consideration in approvals or recording of modifications to securities companies', fund management companies', or futures companies'establishment, equity rights, and actual controller, or private investment fund managers registration, modification of major matter, and other fund recording; make information on untrustworthiness a consideration in review and filing of corporate bonds; and put relevant entities with records of untrustworthiness under key scrutiny, during and after the event, in acquisitions by listed companies or unlisted public companies.

(Implementing Units: The National Development and Reform Commission, Securities Regulatory Commission)

(9) Make information on the untrustworthiness of punishment targets a consideration in reviewing the issuance of stocks and transferable securities of medium and small-sized enterprises.

(Implementing Units: Securities Regulatory Commission)

(10) For relevant entities that have records of untrustworthiness strictly review applications for eligibility to engage in securities, funds, or futures operations, and where they are already an entity of persons engaged in securities, funds, or futures operations, they are to be given heightened scrutiny.

(Implementing Units: Securities Regulatory Commission)

(11) Make information on untrustworthiness a consideration in review of major asset reorganizations of non-listed public companies.

(Implementing Units: Securities Regulatory Commission)

(12) Make information on untrustworthiness a consideration in the approval of fund sales qualifications.

(Implementing Units: Securities Regulatory Commission)

(13) Make information on illegal untrustworthiness an important consideration in the approval or registration of other companies' credit bonds.

(Implementing Units: NRDC, Bank of China

(14) Include information on the untrustworthiness of untrustworthy enterprises and their relevant personnel in Basic Financial Credit Information Databases, to provide an important reference for financial institutions financing credit.

(Implementing Units: People's Bank of China )

(15) Lawfullly restrict untrustworthy enterprises' establishment of finance guarantee companies; lawfully restrict relevant responsible parties from holding of positions as directors, supervisors, senior management at finance guarantee companies or financial instititutions. Use information on untrustworthiness as a consideration in approval or recording of directors, supervisors, or senior management, or the responsible persons at branch organizations of securities companies, insurance companies, fund management companies, or futures companies.

(Implementing Units: Banking Insurance Regulatory Commission, Securities Regulatory Commission, Ministry of Industry and Information, Ministry of Finance, State Administration for Market Regulation, and other relevant departments, as well as financial surety company oversight bodies designated by local governments)

(16) Make relevant information on untrustworthy enterprises a consideration in the approval of the establishment of insurance companies, a consideration in insurance intermediary permits and modification of equity and actual controller filings for insurance intermediary organizations; lawfully restrict untrustworthy enterprises' (or public institutions') legal representatives and principle responsible persons, persons directly responsible for impacting performance on debt, and actual controllers from paying high premiums to purchase insurance products that have cash value.

(Implementing Units: Insurance Regulatory Commission)

(17) The China Banking Regulatory Commission will carefully consider relevant information of untrustworthy enterprises when approving the establishment of commercial banks or branches, representative offices as well purchase of stock or acquisition of commercial banks.

(Implementing Units: Insurance Regulatory Commission)

(18) Make information on untrustworthiness a consideration in oversight and management during and after the fact of a domestic listed company's implementation of an equity incentive plan or making relevant personnel equity incentive recipients.

(Implementing Units: Securities Regulatory Commission, State-owned Assets Supervision and Administration Commission, Ministry of Finance）

(19) Make circumstances of untrustworthiness a basis of careful consideration in the examination, approval,and management of qualified foreign institutional investors and domestic institutional investors.

(Implementing Units: Foreign Exchange Bureau)

(20) When financial institutions making inquiries as to whether a credit applicant and its legal representative, actual control person, directors, supervisors and senior management are entities responsible for untrustworthiness make the untrustworthiness a basis for strict review of credit applications.

(Implementing Units: People's Bank of China, Banking Insurance Regulatory Commission)

(21) Restrict persons responsible for serious untrustworthy conduct from taking airplanes, soft sleeper trains, second class or higher cabins on ships, any seats on G series express trains, or first class or higher seats on other trains, and restrict other consumer activity not necessary for livelihood or work.

(Implementing Units: Ministry of Transport, Civil Aviation Administration, China Railway Corporation, and other relevant departments)

Make relevant organizations and their legally-designated representatives, actual controllers, directors, supervisors, senior management, and others' status as entities responsible for untrustworthiness a prudential consideration in their enjoyment of the beneficial policy supports.

(Implementing Units: National Development and Reform Commission, Ministry of Commerce, General Customs Administration, State Administration of Taxation, General Market Administration )

(23) Lawfully restrict or prohibit untrustworthy enterprises from obtaining government land.

(Implementing Units: Department of Natural Resources)

(24) Lawfully restrict untrustworthy enterprises participation in bidding and tendering on construction projects.

(Implementing Units: National Development and Reform Commission, Ministry of Industry and Information, Ministry of Housing and Urban and Rural Development, Minstry of Transport, Ministry of Water Resources, Ministry of Commerce, International Development and Cooperation Agency, Civil Aviation Administration, Railways Corporation)

(25) Lawfully restrict untrustworthy enterprises from rights and interests in collecting fees for public roads.

(Implementing Units: Ministry of Transport）

(26) Where untrustworthy enterprises apply for customs verified enterprise management, customs is not to give verification; for those who have already become verified enterprises, lower their enterprise credit level in accordance with provisions.

(Implementing Units: General Customs Administration)

(27) When untrustworthy enterprises apply to handle related customs business, carry out strict supervision of the goods they export or import, strengthen market control inspections, and subsequent audits or statistical oversight.

(Implementing Units: General Customs Administration)

(28) Where entities responsible for untrustworthiness are individuals, lawfully restrict there service as the legal representative, director, or supervisor of an wholly state owned enterprise; the legal representative, director, or supervisor of a state-owned capital holding or stake in a company; or the legal representative or senior management of state-owned enterprise; and where they already serve in such a position, submit an opinion that they are to no longer serve in that position.

(Implementing Units: Organization Department of the CPCC, State-owned Assets Supervision and Administration Commission, Ministry of Finance)

(29) Where the entities responsible for untrustworthiness are individuals, lawfully restrict their registration as the legal representatives of public institutions. Where the entities responsible for untrustworthiness are institutions, the legal representatives of those institutions are to be lawfully restricted from registering as the legal representatives of public institutions.

(Implementing Units: State Commission Office for Public Sector Reform)

(30) Make untrustworthy enterprises and units that have entitites responsible for untrustworthiness as their legally-designated representatives, actual controllers, directors, supervisors and high-level managers, key targets for supervision, increase the force of routine supervision and management, raise the proportion and frequency of random inspections, and administrative supervision and management measures may be adopted against them on the basis of relevant laws and regulations.

(Implementing Units: Relevant Departments for market oversight and industry)

(31) Publication of information on entities responsible for untrustworthiness through main news sites.

(Implementing Unit: State Internet Information Office)

(32) Where state organs, enterprises, public institutions, social groups, or their leadership are the untrustworthy units or individuals, they must not participate in selection of civilized work units, moral exemplars, and all type of commendations, and where they have already received such honorific titles, they are to be revoked.

(Implementing Units: Publicity Department and Civilization Office of the CCCPC）

IV. Ongoing management of shared information

The Department of Human Resources and Social Security, State Administration of Taxation, Medical Insurance Administration, and National Development and Reform Commission are to promptly update information on untrustworthy enterprises and related personnel through the national credit information sharing platform's system for joint disciplinary action against the untrustworthy, and other departments and units are to follow laws, regulations, and relevant provisions to carry out or remove punishments on the basis of their respective duties. At the same time, relevant departments should regulate the production and publication of lists of untrustworthy enterprises and relevant personnel in accordance with laws and regulations, establishing and completing removal mechanisms and systems for objections and complaints.

V. Other matters

Each department and unit should coordinate closely, actively implement this MOU, actively promote the revision of laws and regulations in the field, draft revisions to the department rules and normative documents, guide and request that all levels of unit in the field carry out specific, strict, and effective punitive measures. Specific operational issues in the implementation of this memorandum are to be settled by the discreet departments through consultations.