(Yicai Global) Feb. 11 -- Premier Li Keqiang has signed a State Council decree unveiling a regulation on preventing and handling illegal fundraising amid efforts to promote healthy economic development and maintain social stability.
The new regulation will strengthen oversight in key areas. It will also prevent and defuse risks and protect the legitimate rights and interests of the people.
It will come into effect on May 1.
A State Council executive meeting on Dec. 21, 2020 adopted the draft regulation. It stipulates the administrative and criminal responsibilities for illegal fundraising, the return of funds, and the consequences participants should bear.
The country prohibits illegal fundraising in all forms and shall put prevention first, conduct early cracking down on illegal acts, and prudently implement comprehensive management, said the regulation.
An integrated working mechanism shall be established. Governments at the provincial level shall be in charge of the work against illegal fundraising in their administrative areas, guided by the State Council, according to the regulation.
Monitoring and early warnings shall be established and improved. More efforts should be made in market entity registration, internet and advertising management, as well as funds monitoring.
The administrative deposition shall be strengthened, with timely investigation and identification of suspected illegal fundraising acts, with clarified means and compulsory measures.
The regulation stipulates legal responsibilities. Acts of illegal fundraising that constitute a crime shall be investigated for criminal responsibility under the law.