China has intensified its campaign against telecommunications and cyberspace fraud by imposing restrictions on not only the perpetrators but also those who provide banking or online payment accounts to facilitate such frauds, as per a new guideline released on Tuesday.
The guideline, which outlines joint punishment measures for telecommunications and internet fraud and related crimes, was issued by the Ministry of Public Security, the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the People's Bank of China, the country's central bank.
The restrictions will be applied to individuals who have been criminally penalized for fraud or assistance in fraud, as well as to those who sell, rent, or lend accounts and tools, including SIM cards, SMS ports, and digital renminbi wallets, to fraudsters on more than three occasions. Additionally, those who assist in real-name authentication for such tools more than three times will also face restrictions.
Zheng Xiang, deputy head of the criminal investigation department of the Ministry of Public Security, stated that these measures, set to take effect on Sunday, aim to curb the rapidly growing issue of telecommunications and cyberspace fraud. He noted that many are involved in the business of providing tools necessary for such frauds, and some companies and individuals offer technical services to bypass the real-name authentication required for financial, telecommunication, and internet services.
The guideline also states that offenders will be included in the national list of seriously dishonest entities for telecommunications and cyberfraud, with their information uploaded to a national credit information sharing platform.
Xing Xiaodong, deputy head of the Department of Fiscal and Financial Affairs of the National Development and Reform Commission, mentioned that the platform will share the information with other authorities to ensure the imposition of specific restrictions on listed individuals.
The restrictions include preventing listed individuals from conducting transactions with their bank accounts and digital renminbi wallets through non-over-the-counter channels. Restricted individuals will also be unable to use their online payment accounts, except for transferring funds to their own bank accounts. They will not be permitted to open new online payment accounts.
Telecommunication services under their names, including SIM cards, landline telephones, and SMS ports, will face restrictions, and telecommunications companies will be prohibited from providing them with new products. Telecommunications and internet service providers are also banned from launching websites and distributing applications on their behalf.
According to the guideline, the restrictions for offenders will last for a minimum of two years but not exceed five years, with offenders being removed from the list upon expiration of the restrictions. The guideline also emphasizes the rights of those facing restrictions.
The police are required to inform offenders, either in person or by mail, of the reasons for the restrictions, the specific restrictions to be imposed, the time limit, the right to appeal, and the channels for appeals.
Yang Qing, deputy head of the Payment and Settlement Department of the People's Bank of China, advised the public against selling, renting, or lending their bank accounts, online payment accounts, or digital renminbi wallets to others.